Growth in Demand Leading to House Price Hikes in Manchester
The Royal Institute of Chartered Surveyors recent Residential Market Survey has shown that the rise in price of houses in Manchester and the North West has led August 2013 to be yet another buoyant month for the Manchester property market.
As demand continues to rise for accommodation in the area, the increase in value of the standard home has a created a boost for the property market which is showing no signs of waning. In the North West as a whole, 8 of 10 surveyors questioned stated that they had seen an increase in the number of new sales in August this year, a growth of almost 30 per cent on the same time in July.
More New Homes Needed
But whilst the supply of houses in the region is continuing to improve, it is by no means keeping up with the increasing pressure for more homes in the region. This is leading to upward pressure on the average property value not experienced since 2006.
Thanks to cheaper mortgages and increased investment in the region, the demand for housing in Manchester and the North West is predicted to remain strong for the long term. And whilst this is good news for property investors in the region, new buyers are finding it harder to get their foot on the property ladder causing more and more people seeking property in Manchester to look to the rental market to provide them with the accommodation they need.
Housing Charity, Shelter, has said that the rising cost of homes in Manchester and the North West is leaving almost 4 in every 10 families unable to buy their own properties. And the charity is calling for more public investment in the form of expanded shared ownership schemes to increase the chance for these ‘forgotten families’ to own their own homes.
And while the recently launched Residential Growth Prospectus for Manchester highlights plans for almost 5,000 new homes to be built in the city within the next three years, growth in the area and continuous demand ensures opportunities for the savvy property investor in Manchester continue to expand.