Developing Manchester’s future

Today, the Manchester skyline is unrecognisable compared to fifty, thirty, ten or even five years ago. If you were to show a picture of 2024’s Manchester to the average Mancunian back in 1974, they’d never believe it was the same place. Back then, the grittiness of the city, built on manufacturing and industry, was set to spawn a new breed of music from the buzz of the Buzzcocks and the joylessness of Joy Division. Set against this, there were echoes of a city crying out for development; with pockets of decline, abandoned stations, vast housing blocks such as Hulme Crescents sitting along aged streets, whilst demolition of classic, disused buildings took place. i

Fast forward fifty years, and the transformation of modern Manchester is a sight to behold. Though many areas still await regeneration and investment, figures show that Manchester – the UK’s third largest city – has a population accelerating faster than the national averageii, and is an international destination fostering growth of talent, tech, art and business.

Boasting infrastructure investment, a famous nightlife renaissance, and some of the tallest developments anywhere outside of London; even global designer fashion brands are using the streets as a backdrop to showcase the modern Manchester vibe.

Central to this has been the vision of property developers and lenders who have grasped the opportunity to regenerate the city and build back better – from residential to commercial – creating a landscape that is vibrant, prosperous and dynamic. Specialist property lender Together has been on this journey too. From the humble beginnings of a factory in Ancoats back in 1974, to holding a £6.6bn loan book in 2024, Together has played a proud part of the Manchester growth story; standing side by side with the entrepreneurs and innovators, through a common-sense approach to lending to make finance work and property ambitions a reality.

Always supporting customers to open the doors to new opportunities , the Together team work closely with their broker partners and customers to keep a finger on the pulse of the market – and the new report, ‘Opportunities and Outlook: the future of commercial property’ does just that.

With a national survey of 500 UK property professionals, the report provides insight into the market as it stands, and the future trends set to hit landlords, investors and developers in the year ahead.

Commercial property outlook and opportunities in Manchester

When looking at property professionals in Manchester in isolation, 69% of property professionals feel optimistic for their business. Together found that 22% will be buying properties in the next 12 months, with 30% diversifying into other property types and 25% selling for a profit.

Alongside that, 43% will be increasing rent in the next 12 months – by 19%, on average.

In terms of the trending asset classes to look at, survey respondents said that Manchester’s opportunities could lie in social housing and community spaces (25%), student housing (24%), and housing developments and the private rental sector (20%).

Investing and developing beyond Manchester

At a national level, optimism around opportunities continues, as the market looks to the near horizon. Headline findings include:

· 59% of landlords plan to increase rent across their portfolios over the coming year.

· 31% of professional landlords, property investors and developers expect to buy more properties over the next 12 months.

· 58% recommend investment into the UK commercial property market.

Voicing Mancunian matters

Like 1974, the year that Greater Manchester County was created, 2024 is set to be a year of policy and political change. A looming election sees property professionals voice their opinions on areas of impact. Together’s report found that there’s demand for more support when it comes to the regeneration of disused properties and sites (26%). A similar number of respondents say they want to see an increase in tax benefits and initiatives. Finally, better access to lending (22%) is a key, critical ask for many – something that Together’s range of commercial property loans and finance is well-placed to support.

No wonder Manchester is a city certainly on the move. The vibrant economy – boosted by a thriving biotech presence, digital technology innovation and a buzzing nightlife – can only flourish if the right foundations are laid to open the doors to new opportunities.

Read more about the challenges, opportunities and outlook for the commercial property market and the year ahead. https://togethermoney.com/commercial-market-sizing-report-2024 i Confidentials.com – This is Manchester, 99 photos from the 1970s ii FT.com – Manchester on the move The research was conducted by Censuswide, among a sample of 500 UK respondents (aged 18+) who have taken out a commercial mortgage product in the past – with at least 4 properties in their portfolio. The data was collected between 04.10.2023 – 13.10.2023. Censuswide abides by and employs members of the Market Research Society and follows the MRS code of conduct which is based on the ESOMAR principles.