Whether you’re a new homebuyer wanting to get on the Manchester property ladder or an investor looking to profit from an up-and-coming area, it all starts with understanding the state of the Manchester property market. So, what do you need to know as we kick off the new year?
In this article, we’ll share five Manchester housing market trends to watch in 2024.
- Rising prices
According to data released by Rightmove, the average price of sold houses in Manchester in 2023 was 1% down on the previous year and 4% up on the corresponding 2021 figure. This snapshot statistic suggests a housing market that didn’t change significantly over the past few years. Yet will prices continue to hold steady into 2024? Most analysts think not, predicting that prices will increase by roughly 20% in the next five years. Only time will tell how accurate these forecasts really are.
- High mortgage rates
The latest data shows that demand from homebuyers is falling. Fewer homes are selling, despite there being more homes available now compared to in the previous two years. This is because mortgage rates have been high recently, owing to the Bank of England (BoE) increasing interest rates to try and slow down inflation. However, it’s expected that they will start to lower interest towards the end of 2024.
- Wage growth
The effects of high mortgage rates could be somewhat balanced out by faster wage growth. Data from the Office for National Statistics shows that annual growth in regular earnings was more than 7% from August to October 2023, helping to close the gap between house prices and wages. This is expected to slow to roughly 5% in 2024, so hopefully this should make buying a home in Manchester more affordable.
- Conveyancing innovations
Moving into 2024, many Manchester conveyancing firms are exploring technologies to help make the process as frictionless and convenient as possible for homebuyers. It’s important to find the right conveyancer to help you through the buying process. Some firms are already well ahead of the game in this area, employing innovations like conveyancing calculators that provide transparent cost quotes or e-signatures that streamline the process of signing contracts and Deeds.
- Rental properties growing more popular
Manchester is becoming an increasingly attractive area for investors to let property, for several reasons. The region has undergone extensive regeneration in the past few decades, so its become are much more desirable place to live. There’s also been an increase in rental property value in recent years, and this is expected to continue rising in the next few years. And being a university city, Manchester also has one of the largest student populations in Europe, many of whom choose to stay in the city and make its population more youthful.
Which of these Manchester housing market trends will you be keeping your eye on most?
