House prices in the north west are set to sore by 18.1 per cent over the next five years, according to the Manchester Residential Predictions Seminar in the city centre.
A combination of high demand and low supply means that both rents and house prices will see their values rise, despite UK-wide uncertainty.
And JLL predicts that prices in Manchester will grow by a massive 28.2 per cent in the next five years.
The average two-bed apartment in the city currently fetches £230,000 but if predictions are correct, it could cost £246,000 by the end of 2017 alone – a seven per cent increase.
Rents in the city are forecast to increase by 20.5 per cent by 2021.
This news follows on from strong signs in Manchester’s residential sector, which saw capital values grow by 15 per cent last year.
JLL expects build to rent developments will soon be the mainstay of new schemes in Manchester and the city will be among the first choices for international investors targeting the UK’s Build to Rent sector.
In Liverpool, rents are set to continue to grow by 17.6 per cent over the next five years, whereas Leeds will see the greatest increase in rents of any city in the UK over the next five years – with growth reaching 22.2 per cent.
Stephen Hogg, head of Manchester residential at JLL, said: “Our five-year forecast points to the continued strength of the residential sector in the Northern Powerhouse. Manchester now offers some of the best returns in the UK and is at the forefront of the build-to-rent market in the UK regions.”
According to JLL Manchester will need an extra 3,300 homes every year.
This is underpinned by forecast GDP increases in the Northern Powerhouse’s major cities driven by growth in sectors including professional services, transport and construction.