If there is one thing that’s certain to push property prices in the right direction, it’s an improved infrastructure for the local area. Greater Manchester has recently seen such a boost thanks to the ‘Metrolink effect’, a term derived from the improved and extended rail service which has linked the outer reaches of the city with the city’s centre itself.
Unbeknownst to many, Manchester has the biggest travel-to-work urban area in Britain outside of the capital. Seven million residents are within an hour’s drive of Manchester city centre, and many of those commute into the heart of the city each and every day.
The introduction of the new Metrolink stations in places such as Wythenshawe, Didsbury, Prestwich and Failsworth means that anyone who does need to travel into the city can now do so without having to sit in Manchester’s notorious traffic jams.
This is great news for property owners in these areas. Many potential tenants who may have once ignored the outskirts of town are now taking advantage of the improved rail links and opting to move to those parts of Greater Manchester served by the Metrolink.
What this means for the rental market
Manchester’s rental market has been strong for some time, but the demand for rental properties with an M postcode has never been greater than it is right now. This is true across the rental spectrum, with the demand from investors looking to put their money into property in Manchester and tenants searching for places to rent both at an all time high.
Manchester, like so many other cities across the UK, is struggling to supply the amount of property needed to meet the demand of the market at present. Too few new properties are being built in the area, so rental yields are being pushed ever higher as existing properties go onto the market less frequently.
According to a study made by the Valuation Office Agency, Greater Manchester has seen rental price increases of over 20 per cent in the last 12 months. This extraordinary leap was only bettered by Westminster in London, which posted a staggering 28.4 per cent rise across the same period. Newcastle came in third on the table of areas that have seen the largest price increases over the last year.
House prices in Manchester
Last year also saw both the City of Manchester and Greater Manchester placed in the top two North Western regions that have achieved the greatest positive percentage change in house prices over the last 10 years.
Anyone looking to invest in property within the Greater Manchester area will be pleased to hear such positive news coming out of the city. The vastly improved transport links have clearly had the desired effect on the people of Manchester and the ever-increasing property market is reflecting this.
Manchester is now one of the most profitable cities in the country for investors, with many parts of the city offering extraordinary returns on investment for those entering the property market. Thanks to the introduction of the new Metrolink stations across the Greater Manchester area, and the inclusion of Manchester Airport on the line, this is a trend that looks set to continue into the foreseeable future.
Feature image credit: David McKelvey via Flickr.
If you enjoyed this blog post then perhaps you would like to read “5 Ways To Spot An Up-And-Coming Area“?