UK Property Market: Manchester and Birmingham as Leading Investment Hubs
The UK property market, particularly in Manchester and Birmingham, is showing robust growth, making these cities prime investment hotspots. Backed by strong economic fundamentals, significant regeneration projects, and rising demand, these cities are poised for continued growth over the coming years.
1. House Price Growth
According to Savills, Manchester and Birmingham are expected to experience some of the highest house price growth in the UK over the next five years. These cities are forecast to outpace the national average, driven by increased business activity, population growth, and regeneration efforts.
City Forecast House Price Growth (2023-2027) Current Average House Price (2024)
Manchester 24.3% ￡234,867
Birmingham 19.2% ￡209,960
London 8.2% ￡523,376
UK National Avg. 17.4% ￡295,903
2. Rental Yields and Void Periods
Both cities offer attractive rental yields, making them ideal for buy-to-let investors. Manchester has been particularly strong, with areas like Fallowfield and Salford yielding returns of up to 10.1%, while Birmingham has also seen rental yields rise as high as 5.17%.
City Average Rental Yield (2024) Average Void Period
Manchester 6.5%-10.1% Less than 4 weeks
Birmingham 5.17% Less than 4 weeks
领英推荐
3. Economic and Business Expansion
Both cities have attracted significant business investments. For example, Bank of New York Mellon recently purchased a major tower in Manchester, and other companies like Amazon and Google have expanded operations there. Birmingham is home to several major corporations, including HSBC and PwC, which are helping drive both job growth and housing demand.
City Notable Business Expansions Projected Job Growth
Manchester - Amazon, Google, Bank of New York Mellon - +65,000 jobs by 2040
Birmingham - HSBC, PwC, Goldman Sachs - Largest financial services hub outside London
4. Regeneration Projects and Infrastructure Development
Both cities are undergoing extensive regeneration projects, contributing significantly to their attractiveness as investment hubs. - Manchester: Investments like the ￡1 billion redevelopment of Manchester Airport and the upcoming HS2 rail link will enhance connectivity, ? making the city more accessible and attractive to businesses and residents. The transformation of areas like Salford Quays and the Northern Quarter is ? increasing demand for both residential and commercial properties. - Birmingham: The Big City Plan in Birmingham is one of the largest urban regeneration projects in Europe, creating 50,000 new jobs and transforming ? the city’s core.
City Key Regeneration Projects Impact on Property Market
Manchester MediaCityUK, HS2, Manchester Airport expansion Rising property prices and Manchester Airport expansion rental yields, 21.6% forecast growth
Birmingham Big City Plan, HS2 19.3% rental growth forecast, strong capital gains
5. University Presence and Graduate Retention
Manchester and Birmingham also benefit from high levels of student retention, which significantly boosts rental demand. Over 50% of students who study in Manchester stay on to live and work in the city after graduation. Birmingham has similarly high retention rates, helping to fuel its rental market.
Conclusion: Manchester and Birmingham – The Future of UK Property Investment
Manchester and Birmingham are among the most promising UK cities for property investment, with house price growth forecasts of 24.3% and 19.2%, respectively, according to Savills. These cities are benefiting from major business expansions, infrastructure investments, and robust rental markets, making them prime destinations for both short- and long-term investors. Investors should consider these cities for their high rental yields, strong economic growth, and extensive regeneration projects, all of which are driving up demand for property and ensuring solid returns over the coming years.
If you would like to explore opportunities relating to investment properties or want to find out more, please get in touch, my DM's are always open.