Manchester trumps London in resi investment ranking
The Northern city has been named the top English location for investors, according to Colliers’ latest report.
The biannual Colliers Top UK Residential Investment Cities has dropped for the first half of 2024. The report pits 20 UK cities against each other, comparing them based on five pillars: economics, R&D, environmental, property, and liveability.
Predicted GDP, housing price growth, population growth, EPC rankings, nearby attractions, and student populations are among the 24 indicators Colliers explores when crafting the ranking.
Manchester was ranked third best by Colliers, beaten only by Edinburgh and Glasgow, which claimed gold and silver, respectively. London came in fourth. The closest Northern competitor to Manchester was Leeds, which was ninth on the list.
Liverpool, Newcastle, Sheffield, and York were also examined by Colliers, but did not make the top 10. Sheffield ranked 12th, Newcastle 13th, York 15th, and Liverpool 16th. Other cities that were examined by Colliers that did not make the top 10 include Birmingham, Brighton, Bristol, Luton, Reading, and Slough.
Oliver Kolodseike, director of economics and research at Colliers, noted that Northern cities had a lot going for them, especially when it came to affordability, housing price growth, and sustainability.
Liverpool, for instance, received a nod in the property section. This portion of the report looked at affordability and house price growth. Liverpool came in third in that category. Newcastle was fourth and Sheffield fifth, with Glasgow and Belfast taking the top two prizes.
York managed to break through the liveability pillar, which examined life satisfaction, broadband speed, and availability of leisure facilities and attractions. It came in fourth in that category, beating Cambridge but behind Reading, Oxford, and Edinburgh.
Leeds and Sheffield both earned spots in the environmental section, coming in fourth and fifth, respectively. This section looked at EPC ratings of residential properties over the past five years, carbon dioxide emissions per capita, woodland coverage, and recycling rates. The two Yorkshire cities were bested in this category by Milton Keynes, Edinburgh, and Cardiff.
Manchester’s triumph is largely due to its economic performance. The report noted its predicted 2.2% annual GDP growth over the next five years – a figure that is well above the average for the 20 cities examined in the report (1.8%).
The city has also seen a housing price growth of 33% during the last five years, compared to the 15% average in the other cities. Add to that a forecasted average unemployment rate of 3.7%, a projected annual population increase of 1.14% over the next 10 years, and an abundance of renters, students, and entrepreneurs.
Those figures helped Manchester increase its ranking from the H2 2023 report, where it ranked fourth.
“Manchester has gone through a significant transformation including redevelopment in recent years across the housing tenure mix, so it’s only natural that it would rank highly in our analysis,” said Colliers’ head of UK residential, Andrew White.
He pointed out that several large companies have made their way to the city, including JP Morgan, Octopus Energy, and Rolls Royce. This has led for a need for more homes.
Local government has also made an impact in the city, with White noting: “The local authority has also been very active in welcoming developers to make changes in the city through regeneration projects such as NOMA as well as build-to-rent and single-family housing developments in the city’s suburbs, so it’s not surprising at all to see Manchester rank as our highest English city for residential investment.”
White added: “Furthermore, Manchester’s economic and residential growth highlights the need for strategic expansion to meet housing demand. Angela Rayner’s recent announcement regarding the government’s new housebuilding plans is an important step in this direction to addressing housing shortages. As Manchester continues to attract residential investment and experience population growth, the availability of Grey Belt land for development will support sustainable urban expansion.”
Here is the top 10 residential investment cities in the UK, according to Colliers:
- Edinburgh
- Glasgow
- Manchester
- London
- Oxford
- Milton Keynes
- Belfast
- Cambridge
- Leeds
- Cardiff
Not surprised it’s a brilliant place to be
By Anonymous
and is this a good thing or a bad thing?
By salford fred
Forward planning and putting party politics to one side 20 years ago by visionaries like Sir Howard has truly transformed Manchester. It now attracts jobs and investment backed up by having great developers such as Renaker and Salboy, the largest international airport outside London, 2 global football clubs advertising brand Manchester to the world, an excellent Mayor who is championing the city and transforming transport. All of this is now snowballing for the city. Yes there are still things to improve but Manchester is on the up and going in the right direction.
By Bob
It’s a good thing if you’re right wing, bad if you’re left wing
By Anonymous
I am afraid that the meaning of ‘Grey Belt Land’ will become the most misunderstood concept in planning……
By UnaPlanner
What is Scotland doing so successfully?
By Elephant
Not one bit surprised. Manchester is by far the most innovative forward looking and vibrant city in the U.K. If the city received half the investment that London unfairly receieves then the city would eventually surpass London.
By Vince Brady
@August 06, 2024 at 12:50 pm
By Anonymous
I don’t really think you fully understand what these terms mean.
By Anonymous
Birmingham not even mentioned?
By Anonymous
This is seriously impressive stuff from Manchester
By Anonymous
Don’t get Birmingham – isn’t it supposed to be getting some form of HS2? Still doesn’t make people want to live there by the look of it.
By Anonymous
“What is Scotland doing so successfully?
August 06, 2024 at 1:59 pm
By Elephant”
Edinburgh did really well in University/student population, tourism spots, access to woodland and energy efficiency but not very well on economy and mid table on housing affordability and rental yields. Glasgow did really well on housing affordability and rental yields, energy efficiency, and a high population. It did poorly on economy, leisure facilities and environmental policies and mid on student population and tourist attractions.
By Anonymous
Birmingham was mentioned but didnt make the top 10 cities.
By Anonymous
Having a local authority that encourages private investment helps, such as allowing tall buildings. Liverpool should take note in that if you hinder market forces then you pay the price, remember the dockers opposing containerisation years ago and the work went to other ports. Of course Manchestet gets great help from Central Governments with high profile jobs at the BBC, GCHQ, etc, plus lots of civil service relocations.
By Anonymous
liverpool not even in the top ten is no surprise
By Anonymous
If the council cleaned, gardened and maintained the city centre properly, Manchester would had a far better international projection.
By Anonymous
Many good things to be proud of, there are others that definitely need to be improved and if you live here you know what they are. Overall though the impoverished and derelict corner strewn city of 30 years ago has mostly been transformed with an awful lot more to come. Long may it continue.
By Anonymous
Onwards and upwards for the growth of Manchester!
By John Jones
The amount of misinformation and wishful thinking here is absurd. Here back down on planet Earth are the actual real stats.
London 1st
Scotland 2nd
West Midlands 3rd
But don’t let facts get in the way of reality at placenorthwest!!!!.¡
https://www.ey.com/en_uk/news/2024/07/foreign-direct-investment-in-uk-grows-as-europe-declines
By Karl
Hi Karl! Thanks for your comment. It was interesting to read the EY report you cited about FDI. This story is based on a Colliers report. If you take umbrage with their data, I recommend you speak with them. Best – Julia
By Julia Hatmaker
….according to a Colliers report, according to an EY report …you can prove anything with statistics. The main thing is we are seeing investment in this sector and the evidence can be seen in the construction taking place
By Mark Twain
Yet every single Manchester suburb has gone into decline, my home area of Chorlton is a disgrace
By Anonymous
The City of Manchester’s wages are just shy of an average of 60 thousand pounds a year. That is equal to the London borough of Richmond Upon Thames. Birmingham’s are about 38 thousand or thereabouts. Trafford and East Cheshire which feed Manchester are slightly lower but still considerable higher than the national average. Productivity is increasing quite well across GM with Manchester North East, surprisingly topping that chart. The wealthiest region in Britain is London, followed by the South East(only rich because it is near London), followed by the North West, which is growing much faster than the West Midlands. The North West has recently overtaken the East of England, for the first time in decades. So this information evidences what is happening in the wider local economy. The decision to not extend HS2 to Manchester is utterly ridiculous. The economics of the madhouse. The most successful regional city economically ,not linked to the capital by a faster train, could only happen in Britain.
By Elephant
Anonymous 9.45. Patent nonsense as I’m sure you know but if you’re going to rant at least try to base it in reality.
By Anonymous
Manchester may be the economic powerhouse outside London but we need those levels of investment right across the North and Midlands. That HS2 money hasn’t exactly been splashed around. Saving isn’t investing and I’m pretty sure this present shower will do no more than the last. Well done to Manchester however, despite all that it shows what you can achieve with a few visionary leaders and a willingness to work with all parties.
By Anonymous
@Elephant 10.53am, off topic a bit but why does HS2 have to come right in to Manchester, surely both our big cities should benefit equally, and for me HS should be a line going up to Scotland which would give real benefits in reducing air shuttles to London.
We can have a hub station near, say Warrington, with fast branch lines to Mcr and Lpool, let’s face it why should people have to traverse from suburbs into congested city centres to catch trains.
The French build big out of town stations with ample parking or shuttle buses eg Avignon, Nimes and these are very popular.
By Anonymous
It’s not a great thing for Manchester people only the property industry and landlords who can look forward to higher prices and higher rents.So while the few full their pockets the majority suffer a lower standard of living to pay for that
By Tracey Shaw
Well, positive news I guess but no real surprise.
By Anonymous
Manchester’s average wage is 24k, not 60
By Anonymous
Tracey Shaw, there are endless opportunities in Manchester, there are just far too many people playing victim
By Anonymous
I suggest Anonymous at 1.45pm that you check the ONS list for wages. The City of Manchester is just shy of 60 thousand per year. Greater Manchester varies a lot but The City of Manchester, is just under Richmond Upon Thames in the list and rising.
By Elephant
High wages in Manchester are irrelevant if you have to pay a higher and higher percentage of it for housing.Its the landlord and developer who is getting richer and not you.
By Barry Jones
Elephant – you’re mixing salary data up with GDP per capita. Having said that, the average salary for the regional centre is about £66k now – up from £32k in 2015. Phenomenal growth
By Anonymous
Its a bad thing if you are right wing, but a good thing if you are left wing.
By James Yates
I’m surprised on the wages quoted – so that includes folk in Wythenshawe, Harpurhey and so on?
By CG
@CG, Elephant is clearly lying, the average wage in Manchester is very low, nowhere near 60k
By Anonymous
These methodologies are always flawed, but they have some directional meaning. Manchester has a good strategy and continues deliver, success is marginal gains, we just to need to keep doing the right things.
By Rich X
@August 07, 2024 at 6:44 pm
By James Yates
It’s bad to be either, they have more in common than you think. Horseshoe theory?
Really, there’s just good ideas and bad ideas.
By Anonymous
Maybe the ONS is lying. I give up.
By Elephant
James Yates, wrong, left wingers don’t like landlords and property investors
By Anonymous
It’s purchasing power not wages that’s the importance data Having higher wages is irrelevant if prices of housing and goods are rising faster than wages
By Brian Jones
If Manchester has such good wages and economy then why is it’s city centre full of empty shop and retail units?.It does not look like prosperous place at all.
By Barbara Cohen
Well Barbara , all cities have empty units and retail..it changes all the time , that’s how cities work. Some are more prosperous than others and according to the ONS ie the source of all things official in the UK that’s what it says. I know some people in the comments have difficulty reading the writing but you probably couldn’t convince those types that the earth is round and ultimately they are pretty irrelevant really.
By Iris
Successful prosperous cities such as you find in France and Italy are not full of empty shop and restaurant units.Manchester is full of empty units because wages don’t keep pace with price rises and especially for housing.
By Sharon Young
Sharon – are you asking for Manchester to fix its retail or the UK’s economy?
By Anonymous