Cities who have an infrastructural focus on technology and media hubs are experiencing the highest rate of house price growth and ‘leading the pack’ over the last 12 months according to newly released market insights from management service, Alliance Fund.
Properties located within a city that has a centralised focus on technology and media are seeing the highest rate of house price growth in the country according to new research, with over 30 major cities and towns analysed for their current rates of house price growth and their average investment yields available. The research split the cities based on six defining factors to determine their growth, which looked at whether the locations were a university town, a historic location, a new town, a commuter belt hotspot, known as a manufacturing hub, or a hotspot for media and technology.
Within these defining factors, research determined that when it came to the initial cost of investing, that new towns are home to the highest current house price, averaging at £348,172, followed closely by historic towns that had an average house price of £345,471. The third highest cost when investing came in cities that had a university, and locations that ranked highly in the manufacturing category remained more affordable at £206,596.
However, when it comes to the rate of house price growth, cities with a strong focus on technology and media experienced house prices growing by an average of 14% over the last year, whereas commuted belt cities have seen the lowest level of capital gains in the last year, climbing by only 11.3%.
“Investing in a town with a particular draw or purpose, such as an established or emerging industry, will always make for a smart investment. For example, we’ve seen how Manchester has established itself as the UK’s media hotspot and this has been incredibly beneficial for those who have invested in the city's residential and commercial property sectors.” Iain Crawford, CEO of Alliance Fund.
Manchester is the fastest growing city in the UK according to JLL’s Big Six Residential Development Report, which has experienced 34% growth and also experienced the largest employment and population growth over the last decade. The also city boasts the second-largest operational BTR (Build-to-Rent) market in the country, with 30 different BTR schemes encompassing over 8,900 homes.
To learn more about how you can capitalise on the booming rental market in Manchester and invest in the UK’s largest technology and media hub, get in touch with one of our expert property consultants today.