Flat prices in Manchester

Prior to 2010 there was little cause for optimism for flat prices in Manchester. Flat prices have been falling since 2007, and at a much faster rate than other types of property. The beginning of 2010 however, told a different story. Prices were up 10% on the year before due to strong demand, and offers were consistently very close to the asking price.

Unfortunately these good times were short lived. The new government brought with it uncertainty over jobs and a whirlwind of pessimism, funding cuts, and warnings of tough times ahead. The national press was particularly negative, and by august, all this began to impact on the Manchester property market.

Prices suffered, dropping approximately 8-9% from August until now, hitting those hoping to sell. A stunning flat in Ancoats was put on the market in January this year for £144,950, and the seller turned down an offer of £138,000 optimistic for more. As the market started to decline, the property price had to be reduced a couple of times, and the vendor is now offering the property for £129,950- a reduction of more than10%!

This does of course put investors in a good position. homes4u has experienced a surge in enquiries for blocks of flats, particularly those suitable for use as student accommodation, as well as part-developed sites and land. First-time buyers are also taking advantage of low prices by finding inventive routes into flat ownership, such as clubbing together with friends or turning to parents for financial support, to help give them that first step onto the property ladder.

Let’s keep our fingers crossed that this trend continues to increase into 2011, and it is a better year for funding and sellers alike!