Cushman & Wakefield gives its predictions on what lies ahead for the North West property market this year:
John Keyes, Head of Cushman & Wakefield’s Manchester office comments: In Manchester, a further number of high profile technology occupiers will announce plans to re-locate or expand in the city.
Demand for city centre residential units will remain strong and new development will start in the Northern Gateway and in East Manchester, breaking previous value levels in these locations.
The Mayor of Greater Manchester will secure further control over funding and more powers to intervene to support economic development, infrastructure and housing delivery.
Nationally, further devolution deals will be agreed, not least as some local authorities and regions see the benefits resulting through additional funding and control of that funding.
There will be some further funding announced for the health sector in the 2018 Budget but still below what the sector is asking for. There will be more ‘concerns’ expressed about the care sector and investment in its estate. Politicians will still be searching for a consensus approach.
Following recent media stories, there will be an effective cap applied to Vice Chancellor salaries at UK Universities.
Caroline Baker, Partner, Development and Planning at Cushman & Wakefield in Manchester comments: Manchester and Liverpool have been the focus of much residential development, particularly build to rent (BTR), over the last few years. We predict that 2018 will see a new focus on residential development in smaller cities and other major towns in the North West. Given the expectations of land values in Manchester and Liverpool city centres more developers will start to look in other areas to find new opportunities.
The focus will be on centres in accessible locations (in particular within walking distance of intercity stations and the metro network), with excellent connectivity to employment opportunities, green space and a vibrant mix of bars and restaurants and wider leisure offer. This new focus will in part be in response to the Greater Manchester Mayor’s prioritisation on the delivery of new homes in Greater Manchester’s town centres. The product will be different to that which has been seen in the City Centres with less glass and less height. We anticipate seeing higher density schemes such as town houses and 3-4 storey flatted developments especially around transport nodes. The target occupiers will be much broader too – some young professionals but more of a focus on families and older people.
