As of October 2024, the average house price in Manchester was £253,000. This represented a 2.3% dip from the previous year[1].
This turbulence, however, was the result of transient complications. In fact, the future of Manchester’s house prices is credibly believed to be much more rosy.
The disturbance was most significantly impacted by the substantial growth in fixed-rate mortgage rates from the start of 2021. This was associated with the Bank of England’s hike in the base rate to tackle inflation which ballooned to a whopping 11.1% at its peak in Oct-22.
In May-24, UK inflation reached the BOE’s target level of 2% which then corresponded to two reductions in the base rate. Whilst there have been more recent fluctuations in the inflation throwing doubt onto more substantial rate cuts, this is of a different magnitude.
The return of inflation to target and the initial indication of interest rates coming down has corresponded with a significant stabilisation of house prices in Manchester.
Manchester’s residential property market continues to excite investors and speculators. This is evidenced by the unceasing influx of new development monies aimed at addressing the ever-increasing demand from young professionals, families and students.
Developments such as The Crescent in Salford, a community of apartments, small businesses and greenspaces, centred around University of Salford, which has attracted over £1bn worth of private investment.
Similarly, the opening of Co-Op Live, the largest indoor arena in Europe with a near 24,000-person capacity, next to the Etihad Stadium is further evidence of the unassailable market confidence in Manchester’s projected popularity.
Savills too have recognised the North West’s unrelenting ever-increasing attractiveness, placing the region at the top of their capital value growth table in their latest residential property forecast. In their view, the North West is set to grow 29.4% in the 5 years to 2029[2]. This is nearly twice as high as the project capital growth rate for London and the South East.
Pure City Living is a specialist estate agency for people looking to buy or rent property in Manchester city centre. With decades of experience, we can help you find the perfect home.
If you are thinking of selling your property, then you can use our free online property valuation tool below.
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