The prices of homes in the North West are expected to rise by 4% this year.
This figure has been revealed after global real estate services provider, Savills, has released its upgraded forecasts for the “second hand” housing market in the year ahead, which is based on Nationwide Building Society’s house price index.
Researchers at Savills had previously expected house prices to remain flat in 2021 across the UK, but a number of measures to support the market which were included in Chancellor Rishi Sunak’s Budget announcements last week, combined with the easing of lockdown measures, have led them to revisit their forecasts.
Lucian Cook – Head of Residential Research at Savills – said 2021 had initially been set to be “a complex and uneven year” for the housing market, but added that “the outlook has improved since the beginning of the year given the speed of the vaccination programme, the expected relaxation of social distancing measures and government support for both jobs and the housing market”.
The property group has calculated that nearly £50,000 will be added to the average UK house price between December 2020 and the end of 2025.
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And by the end of 2025, house prices should have increased by 28.8% in the North West of England.
As is to somewhat be expected nowadays, Savills has predicted that housing markets further away from London – such as in Greater Manchester and the North West as a whole, where house prices tend to be lower – have more potential for prices to grow.
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Savills said that a key reason for larger price rises in parts of the country, like the North West, was simply that there was more capacity for growth, with Lucian Cook adding: “The expectation that interest rates will stay lower for much longer than was predicted pre-pandemic means there remains capacity for medium-term house price growth despite the unexpectedly strong performance of last year.
“Across the country as a whole, five-year price growth of around 20% looks sustainable without unduly depleting mortgage affordability.”
Over the next five years, we expect prices in prime central London to grow by 21.6%, as buyers are drawn to its good value in a historical context with the expectation of a strong rebound when international restrictions ease.
During last week’s 2021 Budget, it was announced that temporary lifting of the stamp duty threshold in England and Northern Ireland is to be extended until the end of June, and a new government guarantee for lenders to support the return of 95% mortgages will be introduced.
“With the introduction of the mortgage guarantee scheme, [it] underpins our expectation of 1.4 million transactions in 2021,” Mr Cook concluded.
Property
The plans to build 107 new homes in Manchester city centre – including affordable housing
Daisy Jackson
A new community of homes – including affordable housing – is on the way to Manchester city centre.
Fresh new images have been unveiled of Ferrous, a brand-new 107-home rental scheme that will be built in Piccadilly East later this year.
The new development from Capital&Centric will include 15% affordable housing, as well as a new pocket park.
The new scheme is partly thanks to a £1.6m investment from the Greater Manchester Combined Authority, which will see a previously underused brownfield site regenerated.
The site near Manchester Piccadilly was previously owned by Transport for Greater Manchester.
Although the planning consent didn’t require an affordable housing, Capital&Centric has committed to delivering around 15% of the new homes as affordable.
Alongside the pocket park, there’ll be a small kiosk designed as a launchpad for an independent food or drink operator.
Piccadilly East was named by The Sunday Times as one of the UK’s most up-and-coming places to live, thanks to developments like Crusader Mill and Neptune Mill, plus the landmark ‘Jenga’ Leonardo Hotel.
Tom Wilmot, Joint Managing Director at Capital&Centric, said: “The GMCA funding is helping unlock new homes on a challenging city centre site while allowing us to deliver affordable homes as part of the scheme.
“We’ve also carved out space for greenery and an independent operator because small pockets of public space make a massive difference. In a post-industrial city you have to go big on planting. Kampus showed that and we want to create a mini version here.”
Construction on Ferrous is expected to start later this year with completion anticipated in 2028.
Plans submitted for ‘substantial’ refurbishment of historic Sir Ralph Abercromby pub
Daisy Jackson
Plans have been submitted for an extensive refurb of the legendary Sir Ralph Abercromby pub in the heart of Manchester.
Gary Neville’s Relentless Developments has applied to restore the pub in a way that ‘honours the building’s heritage’.
It will be integrated into the wider £400m St Michael’s development, which now towers above the 19th century bar.
The proposals include a substantial refurbishment of window frames, brickwork, and external doors (or replacements where necessary), as well as a glassed walkway that will link the pub with the 43-storey tower next door.
That huge new tower will soon be home to the W Hotel and W Residences, with other names within the development including Chotto Matte, Grind, and Circolo Poppolare.
The Bootle Street boozer has long-been one of Manchester’s most iconic pubs, and was the subject of a local petition during the early stages of the St Michael’s development planning.
After locals rallied around to save the pub, the Sir Ralph Abercromby was factored into the Relentless Developments plans.
And now it’s time for its new chapter, with works commencing in the coming months, subject to planning approval.
It’s hoped the work on the pub will complete by summer 2027.
Gary Neville, Director at Relentless Developments, commented: “The Sir Ralph Abercromby is one of Manchester’s most treasured pubs and an important part of the city’s social fabric.
“A big part of our ambition for St Michael’s has been to celebrate Manchester’s heritage and restoring this iconic building is central to that vision.
“Our proposals carefully retain and enhance the features that give the pub its character while sensitively integrating it into the wider St Michael’s scheme.
“We’re proud the pub has been able to remain open throughout construction and this next phase will secure its future for generations to come – ensuring it continues to serve the community while sitting confidently alongside a truly world-class development.”
Emily Sergeant -
10th March 2021 
