It is no kept secret that more people than ever before are leaving London. Escalating house prices are leaving a sour taste in people’s mouth as the capital city is rapidly slipping down the list of locations that many prospective property investors may have originally chosen. From June 2016 to June 2017, a total of 330,000 people were recorded to have left London to live in other towns, cities and rural areas of the UK, with the North being the top location enticing London’s leavers.
There are multiple reasons why people are heading up North from London as soaring prices have made the city unappealing. Average rents across the city have climbed above £2,000 per month, compared to the average monthly rent outside of London at a much more affordable price of £796.
One of the largest demographics that have been part of the mass exodus from London are professionals in their 30’s and millennials. Professionals who are moving up North for work are being greeted by the same high calibre of job, as many companies that became established in the South are moving to the North to seek lower rents and pay their staff lower salaries which are still relative to the average living costs.
In London, generous salaries even struggle to keep up with the rising prices in the property market. Spiralling rents have become unattainable and London has become a location that property investors and those looking to step onto the property ladder for the first time are keeping at arm’s length. London has an increasingly changing economy, which shows no signs of abating, leaving cities like Manchester and Liverpool viable competitors and a much more affordable version of London.
Manchester city centre and its surrounding suburbs have seen a major injection of regeneration, boosting the number of properties under development. Between Manchester, Salford and Salford Quays there are 15,000 new developments that are changing the cityscape. One of the most notable reasons pushing up new ambitious developments is the increasing demand for city centre living, whilst alongside this, one of the fastest growing student populations in the UK and high retention rates secure Manchester as a hotspot for prosperous property opportunities.
Due for completion at the end of 2019, a £1 billion development will welcome 3,000 new homes, 320 hotel rooms, 560,000 square feet of workspace, and 240,000 square feet of retail space. Local amenities are one of the most attractive factors when trying to appeal to new tenants or investors, as convenience and access to local facilities are one of the biggest selling points for those who are not as familiar with the area. This new state of the art development will be situated in Manchester’s bustling financial district, Spinningfields, as it has strived to become one of the main business quarters in the UK.
The average property price in London is £476,000, which far exceeds the national average in Manchester at £212,202. Manchester, as well as neighbouring cities Leeds and Liverpool, is predicted to experience unprecedented growth over the forthcoming years. The annual average house price is expected to be around double the national average, as Manchester will benefit from a 4.2% increase while the rest of the UK rises at a slower rate of around 2.4%. Those leaving London for Manchester can secure properties at a significantly reduced rate, but lower prices do not compromise on quality. RW Invest, a property investment company based in Liverpool, focus on delivering high quality developments for their valued investors at below market value. Northern cities have not only become a haven for people to secure stable jobs, but also obtain a property without sharp costs.