With London commercial rent prices at a record high, many businesses are choosing to set up shop in more affordable northern cities like Manchester and Liverpool, in a phenomenon that's been dubbed 'Northshoring'. But how will this shift affect the residential property market? Here's a look at what this promising trend means for homeowners in the region.
Property prices likely to rise
The influx of big business is good news for the residential property market. A thriving professional job market means that, instead of heading straight for London, graduates from northern universities will be more likely to stay put.
What’s more, an increase in job opportunities and new offices opening outside of the capital will pull a greater number of professionals living in London to the north. This means increased demand for housing and therefore a better market for homeowners looking to sell. Demand has been increasing across the north, but recent figures suggest that the following areas are especially attractive:
Salford. Property sales in Salford jumped by nearly 25% in 2015, making it England's biggest property hotspot. Cheap commercial rent prices in Salford Quays, and nearby MediaCityUK (home to the BBC), have made it a popular destination for northshorers, too.
Trafford. House prices in Trafford are rising almost as fast as London. According to the Land Registry, property prices are growing at 9.1% year on year. Not only that, but over the past five years Trafford has seen a 37% increase in 'golden sector' businesses – those which operate in the professional, scientific and technical; information and communication; and financial and insurance spaces – attracting high-earning house hunters.
Poulton le Fylde. Sales in this charming market town increased by 17% in 2015. Just over an hour's train journey from Manchester, it's well within the commuter belt.
Next steps for sellers in the Northwest
- Follow local business news. Which companies are northshoring, and where are they basing themselves? Look out for signs of development near you.
- Keep an eye on the property market in your area to see if prices increase. If you're ready to sell, it pays to list your home while demand is high.
- Book an expert valuation with HouseSimple.com.
Based in the Northwest and considering selling your home? Start your free week's trial with HouseSimple.com today.