Investing in Wigan, Greater Manchester - A GUIDE BY PROPERTY MOOSE - HubSpot
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A GUIDE BY PROPERTY MOOSE Investing in Wigan, Greater Manchester
We believe Greater Manchester to be a thriving hub of innovation, cul-
ture and finance. The borough has developed a reputation of being “the
SECTION 1
only place in the in United Kingdom that even comes close to rivaling
Greater Manchester Fact File London in terms of the strength and breadth of the professional and
financial services in can offer.” (4) Forecasts support this in revealing
the borough development will continue to thrive, with private sector
growth in Greater Manchester will surpass national averages. (5)
Greater Manchester boasts an impressive portfolio of media, culture
and performing arts. Not only is the county home to MediaCity UK,
which houses ITV Granada and the BBC, but Greater Manchester has
“the highest number of theatre seats per head of population outside
London.” (1)
Greater Manchester’s Major Sectors (5)
Financial & Professional Services 16.6%
AT A GLANCE Manufacturing & Engineering 16.1%
1. Situated in the North West of England, Greater Health 13.0%
Manchester comprises of 10 metropolitan boroughs, and
the cities of Manchester and Salford (1)
Retail 10.3%
2. The borough spans across 493 sq. mi (1)
3. In the past 5 years, house prices in Greater Manchester Education 8.5%
have increased by 24.48%, which equates to a value
change of £36,252 (2) Creative & Digital 7.7%
4. Savills’ 5 year forecast predicts a house price growth of
12% in the North West, which strongly competes with
London’s predicted growth of 11% (3)
The county also boasts a world-class transport system, with Manches-
5. In the last 12 months, the borough saw 32,874 completed ter Airport evidenced to “serve the county and wider region with flights
sales. (2)
to more worldwide destinations than any other airport in the UK.” (1)
6. The current average value of property in Greater
Manchester is £184,324 (2) Greater Manchester is also set to benefit from the Northern Power-
house; an inwards investment scheme launched by the government in
All data was taken on the 4.5.2017 2015. The scheme is planned to improve infrastructure, encourage con-
2
struction and enable local economies to share talent and expertise, ex- Mish Liyanage, Managing Director of the Mistoria Group noted, “Inves-
panding viable commuter belts. (6) The aim of the scheme is to present tors need look no further than the North West for great investment op-
the strengths, potential and vitality of the northern regions on a global portunities, with yields far exceeding those found in London and the
stage. (7) South East. Investors enjoy lower property prices and minimal void
periods in many towns and cities in the North West.” (9)
Projected Outcome of the Northern Powerhouse by 2019 (6)
Historic House Price Growth in Greater Manchester
Between 2002 and 2016 (10)
Gross Value Added Per Year £12.74 billion
2002
Value of Yearly Benefits to Firms 2003
Through Sharing of Knowledge £1.92 billion 2004
and People 2005
Additional Productive Potential 2006
£13.97 billion
of the Economy 2007
2008
2009
The Department for Transport also predicts that the £13bn dedicated
towards improving the road networks spanning Yorkshire, the North 2010
West and North East will create 2000+ jobs and contribute £4.8bn to 2011
their local economies in the financial year 2020-21 (6).
2012
“Greater Manchester’s population of 2.8 million is expected 2013
to surpass three million by 2035. Employment in the city is
2014
predicted to grow by 3.8 per cent from 2015 to 2020. Ulti-
mately, 10,300 new homes are required every year until 2014
2035.” (8) 2015
We believe this economic growth will undoubtedly strengthen the 2016
county’s existing rental demand. The characteristically high yields on
offer in the North West have shaped the region to be a “rental hotspot
£0 £60,000.00 £120,000.00 £180,000.00
for 2017.” (9) Greater Manchester
3
On top of this, house prices in Greater Manchester have increased sig- SECTION 3
nificantly since 2013, the growth in the last 12 months outperforming
the national average. (2, 11)
Outperforming National House Price
Growth
SECTION 2
Spotlight on Wigan Historic House Price Growth in the UK and Wigan (2, 14)
UK WIGAN
AT A GLANCE
1. Wigan is a metropolitan borough in Greater Manchester Last 20 Years 264.15% 224.34%
and has a total population of 320,000 (18)
2. Wigan has 7 Local Nature Reserves (12) and over 70% of Last 10 Years 19.18% 12.71%
the borough has green space. (13)
3. Liverpool and Manchester can be reached within 30
minutes (13) Last 5 Years 25.92% 21.48%
4. In April 2017, average asking rents in Wigan were £490
pcm. (14)
5. The average price paid for properties in Wigan is £140,922 Last 12 Months 1.56% 4.83%
(14) (Taken on the 5.4.2017)
6. In the last 12 months, house prices in Wigan rose by
4.83%, (14) whereas house prices across the UK only rose Last 6 Months -0.58% 0.79%
by £1.56% (11) (Taken on the 5.4.2017)
Last 3 Months -0.43% 0.31%
Wigan boasts beautiful green countryside and is “punctuated with his-
toric towns and stunning architecture, stately homes, first class shop-
ping and affordable high-quality housing.” (15) Nestled between the (Data taken on the 5.4.2017)
major cities of Manchester and Liverpool, we believe Wigan’s connec-
tivity sets it apart from neighbouring towns. In addition, as it’s situated House prices in Wigan have experienced a steady increase, growing at
in the centre of the regional motorway network, Wigan boasts easy ac- a rate just below the national average for the last 19 years. However, in
cess to the rest of the UK. Liverpool and Manchester can be reached the last 12 months, where house price growth has slowed across the
within 30 minutes, and London is only 2 hours away. In addition, these UK, house price growth in Wigan has accelerated substantially, outper-
distances will be shortened by HS2. (15) forming the national average by 3.27%. In the last 6 months, house
prices across the UK have decreased by 0.58%, though house prices in
4
Wigan have continued to rise. (11, 14 - (Data taken on the 5.4.2017)) Our calculations have been based on the actual capital growth Wigan
We believe this indicates the strength of the borough’s housing market. has experienced in the past 5 years (i.e. 21.48%) and the gross rental
SECTION 3
A Buy-to-Let Hotspot Investment £1,000
£300,000.00 Rental income over 5 years £312.5
£225,000.00
Management fees £34.524
£150,000.00
Corporation tax £62.5
£75,000.00
Net rent £210.625
£0
Capital growth £214.8
Detached Semi-detached
Terraced Flats
Total Returns Over 5 years £425.425
Current Average Values Per Property Type (14) (3.4.2017)
Capital Growth 42.54%
In 2010, Wigan was listed as the 11th best buy-to-let hotspot across the
country on account of it’s affordability and its potential for strong
yields. (16) To illustrate this, we decided to calculate what returns you Growth Per Annum 8.51%
could have earned over the past 5 years had you invested in Wigan.
5yield of a 2-bedroom property in W3 between 2014/2015, which is tries while stimulating the expansion of emerging ones.”
6.25%. (16) All data was taken on the 3.4.2017. (18)
SECTION 4
A Thriving Economy
Many large companies have chosen Wigan as the location for the their
headquarters on account of its fantastic network of connectivity.
• Poundland has recently constructed a £30m distribution centre in
Wigan, which could create up to 800 jobs (18)
• NicePak have created a large manufacturing plant just outside the
the borough (18)
• Wigan is home to Heinz’s food factory, which is the largest in Europe
(18)
Wigan’s economy is forecasted to grow by 2.3% per year, reaching
£5.6bn in 2024. The borough is home to over 12,000 businesses, with
the biggest employing sectors being health, manufacturing and retail.
In addition to this, Wigan is home to a variety of energy efficient busi-
ness parks, which provide a strong base for economic growth for the
North of England. (13)
SECTION 4
Capitalise on HS2
Wigan has an existing reputation for being a transport hub within
Greater Manchester, however, with the HS2 track soon to be added to (Diagram Source: 18)
borough’s repertoire, we believe Wigan will boast an outstanding trans-
On the arrival of HS2, journeys between Wigan and London will be
port network.
shorter and more frequent. With trains in each direction every hour,
“The arrival of Hs2 will be a watershed moment for the bor- will carry 8,800 people a day in each direction, and will take 83 min-
ough and will support the growth of our established indus- utes. (18)
6When assessing a property’s potential, strong transport links might be Sources
vital for two reasons: attracting tenants and the property’s resale poten-
tial A property that is situated close to public transport systems will 1.https://en.wikipedia.org/wiki/Greater_Manchester
naturally be more appealing to those looking to rent the property. In
2.http://www.zoopla.co.uk/market/greater-manchester/
fact, in 2015, data from Nationwide showed that “buyers in Manchester
were prepared to pay 4.6% more on average for a home within 500 me- 3.http://www.savills.co.uk/research/uk/residential-research/forecast-
ters of a tram stop. (19) pages/mainstream-capital-values.aspx?utm_source=SavResi&;utm_m
edium=5-year-forecast-site-redirect
SECTION 4
Summary 4.http://www.manchestereveningnews.co.uk/business/special-report-
professional-financial-services-8609043
We believe Wigan has an incredible amount to offer. We believe its con-
5.http://www.investinmanchester.com/why-manchester/economic-ov
nectivity, thriving economy and strong housing market shape it to be a
erview/
property investment hotspot.
6.https://propertymoose.co.uk/blog/connecting-the-northern-powerh
ouse/
7.http://www.ippr.org/read/the-northern-powerhouse-in-action#
Disclaimer and Legals
8.http://www.telegraph.co.uk/property/house-prices/manchesters-re
Property Moose does not provide any advice in relation to investments vival-leading-northern-powerhouse/
and you must rely on your own due diligence before investing. Please
9.https://residentiallandlord.com/high-yields-north-west/
remember that property prices can go down as well as up and that all
figures, rates and yields are projections only and should not be relied 10.http://www.rightmove.co.uk/viz/house-price-trendometer/
on. Past performance is not a reliable indicator of future performance.
Forecasts are not a reliable indicator of future results. If in doubt, 11.http://www.zoopla.co.uk/market/uk/
please seek the advice of a financial adviser. Your capital is at risk if
you invest. This post has been approved as a financial promotion by 12.https://en.wikipedia.org/wiki/Wigan
Resolution Compliance Limited.
13.http://europe.nxtbook.com/nxteu/newsco/gm_propertyinvestment
Property Moose is a trading name of Crowd Fin Limited which is an Ap- guide2016/index.php#/2
pointed Representative of Resolution Compliance Limited which is
14.http://www.zoopla.co.uk/market/wigan/
authorised and regulated by the Financial Conduct Authority (no:
574048). 15.http://www.investinmanchester.com/why-manchester/city-region-
overview/wigan/
716.http://www.thisismoney.co.uk/money/mortgageshome/article-168
9988/Top-100-postcodes-for-buy-to-let.html
17.http://www.rentalyield.co.uk/compare-flat-prices-in-wigan/propert
ies-in-wigan-wn3/1/
18.https://www.wigan.gov.uk/Docs/PDF/Wigan-works/Changing-Brit
ain-HS2-Taking-Root.pdf
19.https://residentiallandlord.com/high-yields-north-west/
Photos:
https://www.visitmanchester.com/ideas-and-inspiration/blog/read/2
016/11/top-5-things-to-do-in-wigan-b50
http://www.constructionenquirer.com/wp-content/uploads/article_9
d00e21737e40ff2_1383673582_9j-4aaqsk.jpeg
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