Birmingham and Manchester lead UK property price and rental price growth projections between 2021 and 2025 according to a new report.
Summary:
- Property in Birmingham and Manchester is forecast to record among the strongest levels of price and rent growth in the UK over the next five years
- Prices in Birmingham are forecast to grow 19.5% between 2021 and 2025, while in Manchester an 18.5% rise is predicted
- The report also detailed some of the features most demanded by property buyers and tenants in the UK today as a result of the COVID-19 pandemic
The UK’s two largest regional cities will be among those topping British property price growth indexes over the next five years.
That’s according to the latest research published by JLL in its UK Residential Forecasts 2021 report.
Its latest forecast predicts that property in Birmingham and Manchester will lead the way for property price growth between 2021 and 2025:
- In Birmingham, cumulative average property price growth is outlined at 19.5% over the next five years
- For property in Manchester, prices are expected to increase 18.5% by 2025
Reporting on Birmingham’s data, the report noted that “HS2 and the 2022 Commonwealth Games are important catalysts for growth” in the city, while there remains a “limited availability of new homes to purchase in Manchester, underpinning values”.
Both of these predictions outstrip the 14.5% UK national growth average in the JLL report.
Additionally, the data also projected stronger rent forecasts in Birmingham and Manchester than the average for both the UK and Greater London:
- Manchester’s cumulative average rental price growth is forecast at 12.5% between 2021 and 2025
- In Birmingham, rents are predicted to rise 12% over this time
- Comparatively, the rent average for Greater London is 10.5%, while the UK average is just 8.5%
For global property investors, the report underlines the strength of buying in cities such as Birmingham and Manchester for the highest long-term returns.
JLL also highlighted some of the new emerging UK trends – created by life in the COVID-19 pandemic – that property investors should now be aware of.
2020 has brought “a significant increase in our time spent in our homes”, which has brought with it a shift in the type of features and facilities homeowners and tenants are now demanding.
The report said: “Our research found the biggest shift in elements of the home which we ranked as extremely important were private workspace (+36%), access to outdoor space (+30%) and broadband speed (+28%).”
