‘Manchester set to top the league table as No.1 city for economic growth’
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Manchester is set to top the league tables as the UK’s No. 1 city for economic growth as the city recovers from the pandemic.
That’s according to JLL’s UK Residential Forecasts 2022-2026 Report which predicts the future trajectory of house prices across the UK, exploring people’s shifting living priorities, and the impact that Covid-19 and the climate crisis have had on residential property.
With the hospitality sector driving the surge in economic activity and people returning to work across the city centre, Manchester City Centre has returned to its former pre-Covid levels.
Areas including MediaCityUK and New Bailey continue to see increasing investment in terms of their commercial and residential potential, meaning JLL forecasts there to be a 4.7% average increase in house prices and 2.9% average increase in rental value forecasts over the next five years.
Elliott Walker, Associate at JLL’s New Homes team in Manchester, said: “Whilst 2020 business performance was far more positive than first feared, we always expected this year to be an improvement on last.
“With Covid-19 restrictions easing, Manchester is finally starting to feel like its vibrant self again, as people return to work and hospitality comes back to life, demand for city centre new homes has soared.
“At the end of Q3 this year, new homes transaction volumes were up by over one fifth (21%) and this rate has continued with the same vigour in Q4.”
As demand for new homes is expected to continue into 2022, JLL says there is now a shortfall in the supply pipeline in the residential market.
Head of UK Residential and Living Research at JLL, Nick Whitten, says: “Manchester is booming and our predictions see the city becoming the strongest hub for economic growth within the UK.
“As sales growth and demand continue to soar, the residential market in Manchester is now crying out for both new investors and existing developers to restart their activity in the city and get building more new homes to help strengthen the market even further.”
Overall, UK house prices are expected to rise by 4.2% pa over the next five years, and after a frenetic 2021, transactions will fluctuate between 1.1 and 1.3 million through to 2026. JLL predicts that supply will continue to be constrained by construction remaining well below the Government’s target of 300,000 per year.