Presented by Your Trusted Partner in Property Investment APG Investment
Since the Brexit referendum in 2016, the UK property market has experienced a whirlwind of changes, with Brexit serving as a catalyst for both challenges and opportunities. In this analysis, we’ll delve deep into the intricacies of the post-Brexit property market, highlighting contrasting elements between London and Manchester while shedding light on emerging trends and investment prospects.
Property prices have increased by 52.7% in Manchester since Brexit
Population increase of over 2,867,769 in the last Census 2021
Rents in Manchester are up 23.4% whilst London rents rose by 11.8%
1. Property Price Dynamics:
Brexit injected a dose of uncertainty into the property market, causing ripples in property prices across the UK. While both London and Manchester initially experienced a slowdown in price growth, the extent varied. London, being a global financial hub, witnessed more pronounced fluctuations, with prime central areas bearing the brunt of the impact. In contrast, Manchester demonstrated more resilience, thanks to its diverse economy and lower entry costs
London |
Manchester |
|---|---|
| Central London W1,WC&EC postcode | Central Manchester M1,M2 postcode |
| Average Property Price £1,461,598 | Average Property Price £277,570 |
| Average rental yield 2.9% | Average rental yield 5.4% |
2. Regional Realities:
London, traditionally the crown jewel of the UK property market, faced headwinds postBrexit. Foreign investment, a driving force behind London’s property boom, dwindled amid uncertainty surrounding access to the EU market. Conversely, Manchester, with its thriving tech scene and ambitious infrastructure projects, emerged as a beacon of opportunity. The city’s affordability and growth potential attracted both investors and homebuyers seeking value outside the capital.
3. Investment Insights:
Despite initial apprehension, investors found silver linings amidst the Brexit fog. Build-toRent and student accommodation sectors continued to shine, offering stable returns and long-term growth prospects. While London remained a magnet for institutional investors eyeing prime assets, Manchester’s buoyant rental market and regeneration projects garnered attention from both domestic and overseas investors.
It’s Not Faith In Technology. It’s Faith In People.Steve Jobs
4. Foreign Investment Flows:
Brexit-induced uncertainties reverberated through the rental market, impacting tenant preferences and demand patterns. While London’s high-end rental market experienced a slowdown, Manchester’s rental sector remained robust, driven by a growing population, It’s not faith in technology. It’s faith in people. STEVE J O B S strong employment opportunities, and an influx of young professionals attracted to the city’s vibrant lifestyle.
5. Tenant Trends:
Brexit prompted a recalibration of foreign investment strategies in the UK property market. London, once a global investment hub, saw a shift in investor sentiment, particularly among EU nationals wary of potential barriers to entry. In contrast, Manchester, with its lower capital requirements and promising yields, attracted interest from a diverse pool of investors seeking exposure to the UK market.
6. Policy Perspectives:
Government interventions played a crucial role in shaping the post-Brexit property landscape. Stamp duty holidays and other stimulus measures provided a lifeline to the market, stimulating demand and buoying investor confidence. However, regulatory uncertainties, including potential changes to immigration laws and tax policies, added layers of complexity, influencing investment decisions and market dynamics differently in London and Manchester.
Conclusion
In conclusion, the post-Brexit property market is a tale of contrasts and complexities, with London and Manchester embodying distinct narratives. While London grapples with the challenges of global connectivity and market saturation, Manchester thrives on innovation, affordability, and growth potential. As investors navigate this dynamic landscape, understanding the nuances of each market is paramount to unlocking opportunities and mitigating risks in a post-Brexit world.
Disclaimer: The insights and infographics provided are for informational purposes only and should not be construed as investment advice. Actual market conditions may vary.
Feel free to utilize this detailed analysis as a resource for understanding the nuances of the post-Brexit property market in London and Manchester!
