01 / Manchester

Construction activity in the North-west soared in the years leading up to the pandemic. Between Q1 2015 and Q1 2020 new work output grew by 70%, close to double the GB rate. Manchester, the region’s vibrant professional centre, attracted significant investment.

Housebuilding is the backbone of construction in the North-west, generating 30% of total construction output. Affordability across the region is relatively favourable and demand remains strong. Manchester is especially desirable, recording the strongest house price growth out of all our focus cities in recent years. Despite this, new private housing starts still trail pre-pandemic levels in the city by around 34%. Build levels are rising from the early 2022 nadir, but there is a way to go and forward-looking order books are subdued.

Along with London and Birmingham, build‑to‑rent (BTR) has become a large asset class in the city and it is evolving. In recent months Developer Downing’s plans for a £400m, 2,224-bedroom co-living development have been approved and Renaker has unveiled plans to build the tallest building outside London. Dubbed The Lighthouse, the skyscraper will reach 213m and is part of the Great Jackson Street masterplan.

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