Manchester is set for a period of major growth in all sectors, including its population, housing, and offices over the next decade-and-a-half according to the city council’s annual State of the City report.
The report looks at sectors from property to economics to homelessness, and compares their progress to previous years, as well as laying out a vision for Manchester.
Place North West has broken down the report below. The full report can be accessed here.
- Mayfield is set to undergo “transformational” change according to the report. The 20-acre site at the eastern gateway of the city will include a commercial, retail and leisure development, a residential community, and a 6.5-acre city park situated along the River Medlock. Planning applications for the first phases have been submitted
- St John’s is in its initial phases of development, but includes the £110m Factory development which will create a “world-class and nationally unique culture-and-art venue” alongside the creation of the former Granada Studios into a 200-bedroom hotel, the refurbishment of the Bonded Warehouse into an enterprise hub for SMEs, and the second location of the Manchester Tech Hub
- Great Jackson Street is imminently set for 1,508 city centre homes as part of four residential developments that make up Deansgate Square, two of which are nearing completion. In 2018, work also started on the adjacent Crown Street development which will deliver an additional 668 homes
- First Street saw the completion of 170,000 sq ft of Grade A commercial space in 2018, which has since been taken up by Gazprom, WSP, and Odeon. Further commercial and hotel development have been proposed and submitted to the council
- Circle Square, the development of a commercially-led 10-acre mixed-use neighbourhood on Oxford Road Corridor continues to progress. The area has a development programme in place that is set to increase the workforce by 74,000 by 2025, with 2,000 based in Circle Square itself The Circle Square masterplan includes 2.25m sq ft of floor space, 1.34m of which will be commercial. Retail, leisure, and hotel amenities will be incorporated alongside 650 apartments and public realm. The whole site is due for completion by 2023
- Manchester remains the largest office market of any city outside of London, with headline prime rents of £35/sq ft. Windmill Green and No.8 First Street completed between 2018 and 2019 and provided almost 250,000 sq ft
- Further office spaces set to come forward are at Landmark with 180,000 sq ft, OneTwoFive Deansgate with 116,000 sq ft, and 4 Angel Square with 200,000 sq ft over the next few years
- Following the potential arrival of HS2 and Northern Powerhouse Rail into Manchester Piccadilly, it is anticipated that the proposed investment in the area could bring 40,000 jobs, 13,000 homes and 8.8m sq ft of commercial development to the site and its surroundings
- The Oxford Road Corridor, which has become an established district with a concentration of educational, research, technological and cultural assets including the universities and tech incubators. A strategic spatial framework has been developed and approved, which sets out a masterplan and guidance document for future redevelopment sites within the Oxford Road Corridor area. By 2025, an additional £2bn GVA is estimated to be generated. Over 37,000 full time equivalent jobs will be borne from the developments
- Manchester has built over 10,000 homes since 2014/15, including 2,900 in 2018/19. This is divided between 1,500 in the city centre and 1,400 across the rest of the city. This figure is up from 2,900 in 2017/2018. Notable examples of recently completed city centre apartment blocks include 350 homes at Deansgate Square in West Tower, and 232 homes at the Trilogy on Ellesmere Street
- Initially, in the Residential Growth Strategy, which covers the decade between 2015 and 2025, 25,000 homes were planned. This figure has since raised to 32,000 due to the favourable market conditions at the moment.
- Forecasts suggest that homes delivery may exceed 5,000 in 2019/20
- This year in Manchester there were more cranes in the sky than ever recorded, including the previous pre-recession construction peak in August 2005
- There are currently over 11,000 homes under construction in Manchester, including 9,000 in the city centre. This is more than in any other core city or individual London borough, the council said, and they are set for completion over the next two to three years
- Many homes have been backed by the £300m Greater Manchester Housing Investment Fund. Schemes coming forward from this investment in the next 12 to 18 months include 351 homes at Manchester New Square, 683 homes at Affinity Living in Circle Square, and 1,508 homes at Deansgate Square
- Established partnerships, including the Manchester Life Development Company, a partnership between Manchester City Council and Abu Dhabi United Group, continue to progress. The MLDC completed 500 homes in 2018/19 including 124 homes at Murrays Mill, and a 199 build-to-rent scheme at Smiths Yard
- Rents have continued to grow but new supply has taken some of the energy from the market in the past year. Rents for two-bedroom properties per calendar month have increased by 1.9% in the city centre, up from £972 in 2017/2018 to £990 in 2018/19. They have also risen 0.1% elsewhere in the city from £722 in 2017/2018 to £723 in 2018/19
- From April 2021 onwards, the city has committed to build a minimum of 3,400 homes with 1,000 available for social rent, 1,000 for affordable rent, 1,000 for shared ownership, and the remaining 400 for other tenures including rent to buy and discounted market rent.
- The affordable pipeline from April 2021 is expected to focus on four “Housing Affordability Zones” in Central North Manchester, Clayton, Beswick, and Wythenshaw town centre. The council will be using its land assets to create and accelerate new opportunities for development.
- Manchester Airport is undergoing a £1bn transformation project, which will see an increase in the size of Terminal 2 and other improvements and enhancement work
- Population growth is concentrated to the city centre and surrounding wards. There are 100,000 more city centre residents expected by 2025 due to new development
- Manchester City Council predicts 637,000 residents by 2025. Population growth has occurred across the whole of Manchester, but has been concentrated in the city centre and surrounding wards over the past few years.
- Increasingly attractive accommodation, combined with the high-quality leisure and cultural offer in drawing students, graduates and professionals into the centre, while families are settling in larger numbers in the inner suburbs.
- Total employment in Manchester has continued to rise. The latest ONS Business Register & Employment Survey shows that employment rose from 357,000 in 2015 to 392,000 in 2017
- The largest number of employees in Manchester, at 20.2%, are employed within the financial, professional and scientific sectors. This is 6% higher than England as a whole, where 16% are employed within these sectors
- Business, financial and professional services, along with cultural, creative, and digital services are two of the major growth sectors. Both construction and wholesale & retail are now the sectors replacing science, research and development
- Construction in particular is projected to grow at a significant rate, driven by some of the major developments in the city
Between 1996 and 2016, 85,000 jobs were created, and another 65,000 are expected by 2036. The council said there are 1.5 jobs per Manchester resident of working age.
In 2019, 123 rough sleepers were counted. This is almost three times the national average.
Increasing the access to settled homes has involved initiatives in both the social and private rented sector. The Council and six registered housing providers have a combined pot of £14m to purchase 60 large homes for Manchester families; these will have a 12-month assured shorthold tenancy, which can be extended. The rent levels are typically set at submarket rents. Work is also ongoing to review Manchester’s Social Allocations Policy to ensure that it continues to meet the housing needs of Manchester residents.
Work is also under way to establish a homeless access hubs pilot in seven areas of the city, co-ordinated by Manchester Primary Care Partnership with the support of Urban Village Medical Practice. Examples of the sorts of work that will be delivered as part of the pilot include ringfenced appointments for people experiencing homelessness, pop-up clinics in homeless hostels, enhanced support for GP registration, and extended new patient health checks for homeless patients.