Londoners Leaving the Lure of the Big Smoke in Search for Increased Opportunity in Manchester

Contributed by RW Invest, 31 July, 2018

For decades millennials and young professionals across England's northern cities only had one destination in mind – London. The capital provided those seeking new experiences with boundless opportunities whereas in present day, the migration is occurring both ways, however one dominates the other as people are increasingly resisting London's lure and heading to the North to live and work.

An influx of people are shunning the capital to live in Greater Manchester, a staggering 10,200 people left London last year to move to the region, whereas 8,870 people moved from Greater Manchester to London. Overall, London suffered a net loss of 1,330 people to Greater Manchester, equating to more than three people per day. According to new data from the Office for National Statistics, the loss of inhabitants from London to Greater Manchester is the highest recorded in at least five years.

Interestingly, Salford has the highest net gain of people from the southern region than any other pocket of Manchester, which could be as a result of the increased focus on establishing Salford as a cultural hub for broadcasting and filming whilst supporting digital enterprises and small start-up companies. The digital tech growth has been enhanced by the BBC's move to Salford which produces £277 million a year for the country's economy alone. Salford is ripe for investment as experts claim the £1 billion investment into the city has instigated a 'tech boom' helping to coin Manchester as the 'next Silicon Valley'.

Revitalising Salford has led to an incessant demand for cost effective housing developments to cater for the surge in professionals seeking suitable, affordable housing. Salford is a hotbed for investors aiming to capitalise on the growing numbers flooding to the area. Over 60,000 people now work in creative and digital industries in Greater Manchester, with figures expected to grow by 27% by 2034.

However, it is not only tenants that provide investors with prosperous opportunities. RW Invest, property specialists based in Liverpool, recognise the compelling potential to secure new build property in Manchester that offers secure capability for capital appreciation. Whilst Salford is experiencing multi-million-pound regeneration schemes helping to rapidly change the city's landscape, the city presents a perfect area to obtain lucrative properties. View their diverse portfolio of current opportunities here: https://www.rw-invest.com/manchester-property-investments/

Considering there is 210 miles between the two major cities, the number of Londoners establishing a northern base seems an impressive feat, however, new regeneration schemes are helping to transform connectivity across the country and paving the way for new, innovative rail links reducing the travel time from London to Manchester from 2 hours to less than 1 hour 15. This ambitious high-speed rail network initiative is due to commence in 2026. Developing connectivity between Manchester and the capital offers professionals the chance to take advantage of lower rents in the North whilst still remaining in a convenient commutable distance to the big smoke.

A key reason why people are moving to Greater Manchester from London is because house prices in the south are stalling, leading many to think about investing in property in Manchester.

Stephen Clarke, senior economic analyst for Resolution Foundation, a living standards think tank, said:

"London is a net exporter of people to the rest of the UK. This is likely due to high housing costs with figures suggesting that people are leaving London when they have children and want to put down roots, a struggle given property prices in the capital.

"London needs to get a handle on its high housing costs if its 'living standards exodus' is to be stopped. To do this, the number of new homes build needs to match the capitals housing needs. Furthermore, a significant proportion of new housing stock needs to be genuinely affordable – and that should apply to both homes to rent, and to buy".

The average price of a house in Manchester is £153,600, presenting an 8.8% growth on the previous year, however still remains 68% cheaper than the average house in London standing around £484,584.

As the economy in Manchester shows no signs of slowing down, the region continues to gain strength and momentum, providing healthy competition between the flourishing north and diminishing south – the migration trend looks set to continue.

Tags: Invest | professionals | investment | standards |

 

 





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