JLL, has just revealed their latest Big Six Residential Development Report.
The highly anticipated report compares activity, prices, and rents across six UK cities outside London: Birmingham, Bristol, Edinburgh, Glasgow, Leeds and Manchester.
Containing valuable data for property investors, read on to discover the key takeaways and insights for the current UK property market.
Birmingham in the spotlight:
JLL have revealed that Birmingham is the leading UK city for property investment. The popular city is forecast to see sales price growth of 24% and rental growth of 18.8% over the next five years, higher than any other UK city.
New build apartments within the city centre are also in demand, with the average price increasing by 4.1% over the year. One-bedroom apartments in particular are sought-after, with the prices of these increasing by almost 5% over the year.
With major regeneration projects such as Paradise Birmingham, and the construction of HS2, Birmingham is forecast to see strong economic growth of 16% over the next decade, exceeding previous growth rates significantly.
Due to the thriving job market and economic growth, there has been a significant increase for housing demand in the city. Major developments, such as Edition Birmingham, are catering to the ever increasing demand for city centre living, specifically within the luxury market.
Edition Birmingham, ideally located by Centenary Square, the base for over 12,000 working professionals, is introducing a new level of luxury living not seen in the city before. According to JLL, the graduate retention in Birmingham (49%) contributes significantly to the economic growth and housing demand. With many graduates remaining in the city, developments such as Edition are catering to the consistently growing demand for luxury city centre accommodation.
Manchester continues to excel:
Another top UK city for property investment identified by JLL is Manchester. Widely known as ‘The Capital of the North’, Manchester is forecast to see the highest GVA growth of the Big Six cities over the next decade.
Average prices for new build apartments within Manchester city centre have risen by 1.5% over the past year, therefore meaning new build homes have seen impressive growth of 25.7% over the last five years.
With rents in Manchester soaring by almost 46% over the past five years, the demand for city centre living has increased significantly. 50% of Manchester’s graduates remain in the city, resulting in a large number of young professionals seeking accommodation within the city centre. JLL reports that these young professionals are prioritising centrally located homes with a high amenity level, eager to find quality accommodation that offers a range of fitness and wellness benefits also.
Developments such as One Port Street, are meeting this demand by offering luxury living with an incredibly high amenity level. One Port Street, ideally located in the iconic Northern Quarter, boasts a stunning swimming pool, modern gymnasium, leafy rooftop terrace and several ambient co-working areas. With resident expectations increasing, properties with a multitude of amenities, such as One Port Street, are able to command a high rental demand.
UK property market outlook:
Throughout 2024 JLL have reported that the sales and lettings market remained resilient, with lowering mortgage rates increasing buyer sentiment and therefore house prices also. The average rental growth across the ‘Big Six’ cities: Birmingham, Bristol, Edinburgh, Glasgow, Leeds and Manchester, averaged a 4.2% rise, with Birmingham leading the way at 9.5%.
The outlook for 2025 remains positive, particularly for new-build investments. JLL has predicted the Build-To-Rent (BTR) market will see strong growth of 20.5% across the UK over the next five years. This strong growth is underpinned by a fundamental lack of stock and high demand for quality rental homes, presenting a lucrative opportunity for property investors.
Sales price growth for UK property is forecast to increase 19.9% between 2025 to 2029, with rental growth also increasing by 17.1% between 2025 to 2029. Manchester and Birmingham are identified as top UK cities, offering fantastic opportunities for property investors.
Property investment with Select Property
With a positive forecast for property sales and rental growth across the UK, particularly for Manchester and Birmingham, the time to invest is now.
Select Property has over two decades experience in developing luxury property in the UK. with international offices across the UK, Asia and the Middle East.
Contact our team today to develop your investment portfolio and invest in the UK’s top cities.