North West Real Estate Update Panel - Key Insights

Fairway was delighted to sponsor HNW Advisor’s North West Real Estate panel which took place at PCD Club’s networking event in Manchester. Fairway’s Chris Mourant joined other professionals to discuss the latest trends in Tax, Law, Financing & Structuring for private investors, exploring the opportunities and challenges facing the North West real estate market.

The panel event was a great success where expert speakers shared their thoughts and experiences, providing valuable knowledge to navigate the ever-evolving real estate industry.

We caught up with Chris to discuss the latest themes and key insights that arose: 

• Real Estate projects – Manchester is a city that’s experienced huge growth and a high level of regeneration over the years. Investment in Manchester has meant that the city now stands as a beacon in the North West, attracting major businesses and residents alike, and producing one of the largest regional economies in the UK. Regeneration projects have completely transformed the city, with several impactful real estate projects that have changed not only Manchester's property investment but property investment in the UK as a whole. 

“Everybody genuinely seemed very excited about the regeneration of the City and how positively such projects may impact the overall economy. In 2023, there has been a number of new exciting developments that are likely to impact the property market in 2024 which include Factory International, Victoria North and Ancoats Mobility Hub”.

• Political uncertainty – One of the key themes picked up on in the Real Estate panel event was the role of the UK Government, especially in relation to residential property and the potential tax implications to foreign investors into the UK.

“Everybody widely agreed that if the UK Government really wanted to encourage the de-enveloping of offshore residential property owning structures, it should have re-visited the capital gains tax implications in relation to de-enveloping. In context, the UK needs to encourage foreign direct investment into the UK which is not happening in relation to residential property. The UK government are also disregarding what foreign investors also bring when they come to the UK – eating in restaurants, going shopping etc”.

• Greater yields – UK real estate investors are looking outside of London due to greater yields, with many focusing on the North of England. Manchester has one of the largest student populations in Europe, with some of the finest universities in the world, such as the University of Manchester. Manchester’s strong rental market is driven by this student population and young graduates/professionals. 

“Experts predict a surge in demand for properties in 2024. The City’s growing economy, vibrant culture and employment opportunities are expected to attract more people to the region leading to a higher demand for properties. With increased demand and limited housing supply, property prices are projected to continue rising in 2024”. 

• Infrastructure – HS2 was envisioned as a high-speed railway set to connect London with the North West, aiming to revolutionise public transport and stand as a symbol of the future. Earlier this month, due to escalating costs, the UK Government announced the cancellation of its northern leg between Birmingham and Manchester.

“Interestingly, there were two schools of thought. The first was that although it would have been nice to have a high speed railway connecting London, the Midlands and the North, people can still get to those places without HS2. The other side of the argument was that it was yet another project that has experienced spiralling costs and ended in a Government U-turn. The general consensus though was more balanced – where there remains uncertainty, creates opportunity”.