12/01/2018 by Jason Guest / Robin Gregson 0 Comments
Spotlight: Old Trafford, Manchester
In previous posts, we've made the case for Manchester as an attractive property investment destination. It consistently ranks highly in terms of yields and capital appreciation, and increasing numbers of talented young workers are migrating here in preference to London and its over-heated property market.
Manchester certainly produces some impressive headline figures. In December 2017, LendInvest's Buy-to-Let Index Report considered Britain's best buy-to-let postcodes and placed Manchester top of the charts.
It noted that Manchester delivered the highest average rental yields of all the UK regions (5.55%) and the strongest rental price growth (5.76%). Combine this with very respectable capital gains (a mean of 8.34%) and it's easy to see why many investors regard Manchester as the country's hottest prospect for buy-to-let investment.
The city's rising fortunes are widely recognised. On 29th November, Savills Research wrote: "It’s an exciting time for Manchester. Seemingly immune to the destabilising influence of Brexit negotiations, property demand from Mancunian businesses and residents has grown steadily and looks set to continue on that trajectory. Manchester’s ambition and strong economic outlook were some of the key drivers behind the North West’s strength in our house price forecasts, and investment in HS2 will drive growth in the longer term. "
It seems fair to say that there's a growing consensus that Manchester is a wise choice for investment. However, it's never a good idea to commit to a property purchase on the strength of broad, regional figures. Manchester is a big city made up of many different parts, and investment prospects differ widely between districts. Even in Britain's most landlord-friendly city, it's important to choose your location very carefully.
There are several very promising areas within Manchester but in this post we'll look specifically at just two of them: Old Trafford and East Manchester. In both areas, there are some important new investment projects happening, and they could have a considerable positive impact on local prosperity, property prices and demand for accommodation.
Trafford benefits from a buoyant economy and the presence of many major employers. Old Trafford is perhaps best known for its sports grounds, home to Manchester United and Lancashire County Cricket Club, but it is also a base for thriving legal practices, hotels, manufacturers and a fast-growing media industry.
The sports manufacturer Adidas has its national warehouse at Trafford Park, which has enjoyed considerable regeneration since the late 1990s and now sustains over 35,000 jobs. One of its most notable tenants is the award-winning mobile app developer Apadmi.
Other well known organisations with national head offices in Trafford include ITV Studios, PG Tips, the clothing manufacturer Regatta, Ocean Finance, L'Oreal, the Peel Group and PH Media Group - the world's largest audio branding specialist.
The economic regeneration agency Invest in Manchester regards Trafford as "the enterprise capital of Manchester City Region" and notes that "Trafford is home to the highest proportion of companies per head of population in this vibrant area." It also reports: "Future developments in the area are already taking shape, including what is set to be a transformation of Trafford’s greatest economic asset, Trafford Park. The
creation of a state of the art sustainable environment with a mixture of uses – including high growth, technological and knowledge based businesses – will provide a wealth of employment, leisure and retail opportunities."
Essentially, Trafford is one of the city's principal growth regions and a key driver of Greater Manchester's economy, so it inevitably generates a high demand for jobs and accommodation. With further regeneration now taking place, the prospects for property owners look very positive indeed.
However, that is not the full extent of the area's appeal, because now there are plans to develop a new university project close to Manchester United's ground on Talbot Road. In October, Microsoft News reported that "Manchester United footballers from the famous Class of 92 have teamed up with organisations including Microsoft to launch a game-changing university in the heart of the city."
Supported by Trafford Council and Lancaster University, UA92 will offer higher education students paid placements in business while developing their personal and academic abilities. The proposal has now entered the consultation phase and should see its first student intake towards the end of 2019. Speaking in September 2017, Sean Anstee, Leader of Trafford Council, noted that: “UA92 presents a fantastic opportunity to revitalise and support our local communities. It will create jobs and attract 6,500 students to the borough by 2028."
This development, together with the many other regenerative projects taking place in the area combine to make Trafford one of the country's top investment destinations.
While Trafford's proposal for a new sports-related university is undoubtedly exciting, it is not the only such scheme earmarked for development in Manchester. In an odd twist of fate, a similar project will be taking shape a few miles to the east, close to Manchester City's Etihad Stadium. The project will be led by Manchester Metropolitan University and will form part of the Eastlands Regeneration Framework.
The scheme was proposed in March 2017 and then, in December 2017, a council report confirmed that the 'Manchester Metropolitan Institute of Sport' would be created within a new Sports and Innovation Zone. This will make use of existing sports facilities and pitches and will provide both undergraduate and postgraduate courses. According to Manchester City Council, two of its key objectives are to "create a centre
of excellence for academic, performance and participation sport within Manchester, and to provide students with access to a unique collection of world-class sports facilities." The development will feature a higher
education campus, a commercial development for sports-oriented businesses and a variety of catering and hospitality facilities. The final draft of the Eastlands Regeneration Framework is now awaiting approval.
If given the go-ahead, this should should spur the creation of new higher education and support facilities, offices, laboratories, lecture theatres and places for over 3,000 students.
In both areas - Trafford and Eastlands - Manchester's continuing success in sports, academia and business is generating dynamic new ventures and partnerships. These will create jobs, boost economic prosperity and draw increasing numbers of students and professional workers to the southern and eastern edges of the city. For property investors with an interest in these sub-regions, this year and next could be very exciting times indeed.
Residential Estates is pleased to be able to offer Kinetic, on Talbot Road, close to Old Trafford, Manchester to investors looking to take advantage of the areas potential. Located within a highly accessible location in close proximity to Metrolink services, Manchester City Centre, Media City and the University Quarter. Kinetic is a 5 storey residential development setting a new standard for affordable urban living. Comprising 48 stylish studios, one and two bedroom apartments and ample parking space, design has been led with modern living in mind. Prices start from £90,000.
For more information on Trafford or Manchester in general as an area to invest, or investing in the UK generally please visit our investment section, HERE, contact one of our Investment Consultant on 01244 343 355 option 4 or complete the form at the bottom of our investments page found HERE.
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