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What if I told you that you could buy a two-bedroom house in a major European city for less than $50,000?  And what if I told you that this property was located in the country with the fastest appreciating real estate market in Europe?  Does this sound too good to be true?  I thought so, until I stumbled upon this wonderful opportunity.  George Orwell called this city “the belly and guts” of England.  Judge Parry, in ‘What The Judge Saw,’ described it as “a synonym for energy and freedom and the right to do and to think without shackles.”  And, Ian Brown, former vocalist of the Stone Roses, affectionately said it’s “got everything except a beach.”  All of these are true, and more. Welcome to Manchester, a working-class city formerly known for its lack of economic opportunities and social problems.  Now, Manchester is one of the UK’s fastest growing large cities and in many ways rivals London, in terms of economic growth and business opportunities.  It is also home to the Manchester Business Park and has hosted the Commonwealth Games.  The UK government is pouring millions of dollars into the city, hoping to make it into the UK’s second biggest hub.  They’ll be happy to know that they’ve already succeeded.  The truth is, Manchester remains one of the great untapped housing markets in Europe.  This is because you can still buy a two-bedroom house in the north of Manchester for less than $50,000.  Even in today’s boom market, where houses have risen in value nearly 19 percent in the last year, it is still possible to find great deals.  The areas to focus on are Moston and Blackley, two and a half miles north of the city center. “House prices in Moston and surrounding areas have increased by approximately 40 percent within the last 18 month period,” says Mike Gallagher of Tom Clarke & Co., an estate agency located in the north of Manchester.  But why purchase a home in these areas?  Because even though house prices have recently surged, buying a home is still very affordable.  And the ongoing renovation of these areas ensures that home values will rise in the future.

Manchester Is On A Roll Manchester is one of Britain's largest metropolitan areas, second only to London. It is set in the old county of Lancashire, on the west of the Pennines, which form the backbone of the country. It gave birth to industry, through early development of its trading skills, and the great industrial drive for which the region is well known. Manchester still produces over half of the UK's manufactured goods. For all the 11 million inhabitants living within 50 miles of the city, Manchester is the centre of working life. Furthermore, they come to shop at the city's mega-mall, The Trafford Centre, or to visit the many attractions and entertainments worthy only of a large, cosmopolitan city. Arin Vahanian, The author of this article is the author of The  Expat’s Guide to Living in Spain - An eBook report on moving to Spain available in our eBook store.

Moston and Blackley were essentially rural areas until the early 20th century.  However, their convenient distance from the center of Manchester meant that development would be inevitable.  The completion of the M60 motorway in 2000 meant that these areas would be well-linked and easy to access.  And new developments such as the Manchester Business Park have done a fantastic job of boosting the local economy and creating job opportunities. 

The average price for a terraced home (essentially what you call a townhouse in the United States) in Manchester is about $110,000.  However, this includes all areas of Manchester, not only the north of the city.  Therefore, the higher prices in the south and center of the city push up the average.  But it’s possible to buy a terraced home in the northern part of the city for less than half the average.  For example, you can buy a two-bedroom, one bathroom terraced house with a rear garden for about $47,000.  Some properties at this price do not require any work, while many others require only a modest renovation.  The amount of work needed of course, depends on the quality of the property.  But it is safe to say at this price, any property you buy will be free of major problems and will be structurally sound. 
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Another great reason to buy a house in these areas is that they area well-connected to the rest of Manchester.  Thanks to the new ring road, most areas of Manchester are readily accessible from Moston and Blackley.  The city center is just a 10-minute car ride away.  While many people have paid enormous sums of money for properties in the center and south, you can buy the same property for less than half the money and be just 10 minutes away from all the action. In brief, three reasons you should buy in Moston and Blackley are “good transport, affordability, and excellent facilities available close by in the city center,” says Gallagher.

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The Emergence of Oldham

Does this still sound too good to be true?  Some critics might say so, and claim that other areas in Manchester are a better investment.  They might point out the recent resurgence of Oldham, a suburb of Manchester.  Oldham has seen its house prices grow by an average of 45 percent in the last year (www.manchesteronline.co.uk).  Three years ago, race riots and social problems plagued the town.  Now, people are buying up houses like mad.  And for good reason, as its quality red-brick housing, excellent motorway links and easy access to the countryside make it a bargain when compared with more expensive areas in the northwest of England. 

But the emergence of Oldham does not diminish the value of buying in Moston and Blackley.  The success of Oldham is crucial to understanding real estate patterns in the Manchester area.  The fact that a formerly neglected town with social problems could have such a dramatic turnaround and become a hotspot is proof that other areas have the opportunity to experience the same growth.

 Moston and Blackley are the equivalent of Oldham, in that they were previously neglected areas with depressed home values.  And, they have seen a recent surge in housing prices.  But two reasons why buying in Moston and Blackley is a better idea is that they are closer to the city center, and the houses are still very affordable.  In Oldham, you’d have to pay at least 40 percent more for the same house and endure a longer commute to Manchester.

Huge Profits on Manchester Homes

How would you like to make $200,000 after buying and holding onto a house for two years?  That’s just what Robin and Liz Carey did after purchasing a home in the suburb of Bromley Cross in February 2002. (BBC News, May 11, 2004).  After putting his house on the market, “the first person who came to see it bought it for the full asking price,” said Carey.  The profit?  £114,000 (about $210,000).

This of course, is an extreme example.  And house prices in all parts of Manchester have not risen in value.  But many people who bought in the center and south just two years ago have made tremendous sums of money on their homes.  There are countless well-documented examples of people making a killing after buying in Manchester and selling up a few years later.  The government’s multi-billion dollar renovation projects that started in the center have helped add tremendous value to the homes.  And these projects are moving further north.

How to Buy in Manchester

 According to the British Embassy, there are no restrictions preventing Americans, Canadians, Australians, or many other foreigners from buying property in the UK.  This means you can buy a house outright.  Of course, it’s always necessary to hire the services of a solicitor (lawyer) when buying a property.  But the process is smooth, thanks to the ease of buying property in the UK.
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But what if you do not want to or cannot buy a property outright?  You’ll be happy to know that there are banks that will finance non-EU residents who want to buy a house in the UK.  Banks such as HSBC have Buy-to-Let programs, which allow you to buy residential property with the intention of renting it out for income.  Normally, they require you to put down about 20 to 25 percent, but I have seen instances where you can put down less and buy the property.  And these types of loans can be either variable or fixed rate.  The length of such mortgages is usually 20 to 25 years, but you can get 15-year loans as well.  Before buying, banks will usually require you to have some sort of valuation done on the home, as well as a full structural survey.  However, when buying such terraced properties, you don’t have to worry about structural damage.

 And how about the claims that Manchester is an “unsafe” city?  Nothing could be further than the truth.  Although the city has had its share of social problems and crime, things have been improving.  Formerly run-down areas such as Oldham, and even the city center, have been renovated and refurbished, and are now lovely areas in which to live.  Moston and Blackley are going to be the next hotspots, and if the 40 percent increase in home prices in the last 18 months is not proof enough, these statistics will be.

 According to the UK Home Office’s Statistical Bulletin released July 2003, crime in Manchester has actually dropped in the last few years.  There was a drop of 1 percent for robberies, 6 percent for theft from a motor vehicle, and 12 percent for theft of a motor vehicle.  And in many cases, Manchester is a safer city than London.  In the year 2001, there were less vehicle thefts and cases of vandalism in Manchester than in London (per 10,000 households). 

A Brief History of Manchester

 First inhabited 2,000 years ago by the Romans, the city sprang into the forefront of the world in the 18th century, thanks to the Industrial Revolution.  Greater Manchester is home to nearly 2.5 million people (420,000 in the city of Manchester), and is also the site of many great achievements, such as the first computer (1948) and the beginning of the vegetarian movement (1815).  Manchester has come a long way, surviving the IRA bombings in 1996, social unrest, and sagging employment, to become the UK’s next hotspot.  Real estate prices in the city have surged 19 percent just in the last year, and recent trends indicate that the future of real estate in Manchester will be very healthy indeed.

Britain’s Most Creative City

 Manchester is also the “most creative city” in the UK, based on the BOHO Britain Creativity Index (May 2003).  This is a simplified version of the methodology developed by Richard Florida, a US economic regeneration expert.  The study ranked the UK’s 40 largest cities using various factors, among which were ethnic diversity and the number of patent applications applied for.  Manchester has a very high concentration of higher education institutions and technology companies, and this accounts for the many patent applications.  The city also has a large ethnic population, and this is one of the reasons it is a leader in innovation, as it is able to attract and keep qualified workers and entrepreneurs.
This means that Manchester is not only a great place for buying property; it is also a leader in technological innovation and friendliness to foreigners.  These are crucial considerations when one considers real estate.  A city which attracts many cultures, is a pioneer in technology and a home to entrepreneurs, is sure to have a bright real estate market.
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Manchester is full of ingenuity and energy, and one visit to the city will astonish you.  Looking for fantastic modern art?  The Lowry, which opened in April 2000, is a modern art masterpiece that contains two theaters, several art galleries, and restaurants.  As you arrive at the redeveloped Salford Quays, this hulking glass and metallic structure juts out into the sky.  Its geometric shapes and eclectic designs remind you of the Guggenheim Museum, yet the Lowry’s waterside location makes it even more impressive. 

Looking for ancient medieval architecture?  How about the lavish Manchester Cathedral, dating back to the 15th century?  Located on the edge of the city center, the cathedral beckons visitors as its haunting spires and looming tower fill your mind with visions of antiquity.  Since the IRA bombing in 1996, new gardens and walkways have been built, making the cathedral an even more breathtaking sight. 

And how about romance?  You’ll be surprised to know that Manchester has miles and miles of canals that run right through the city.  And although they are not as romantic as the ones in Venice, they provide an old-world charm to an urban setting, which makes them unique.  City planners originally built the canals to enable ships to carry coal and raw materials into the city center.  But now, residents use the canals for recreation.  There’s really nothing like a walk along the Bridgewater canal on a crisp autumn day, with the clouds up above and a light drizzle on your skin.  And be sure to check out Castlefield, which is full of bridges, old buildings and renovated warehouses. 
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One of the Last Few Great Real Estate Deals in Europe It’s an early spring morning in central Manchester.  I find myself in the heart of St. Ann Square, amazed by the fabulous architecture and the warmth of the people.  It is sunny yet chilly, with a slight breeze that makes my skin tingle.  I walk into a bookstore and strike up a conversation with a clerk, who tells me, “Manchester represents the best and worst of England.  But you can always find something beautiful.  And there’s a certain energy here that you can’t find in London.  As Manchester goes, so does England.”  It took me a while to understand the brilliance of this statement.  But now I realize what Mancunians have known all along.  Their city has everything that London has, and something London doesn’t have: affordable real estate

The UK housing market is experiencing a boom unlike any other in recent history.  And even though house prices have climbed steadily, there’s still time to find a bargain.  Home values in the north of Manchester, specifically Moston and Blackley, have surged 40 percent in the last 18 months.  But you can still buy, if you act now.  People who bought in the center of Manchester and suburbs like Oldham are now reaping the rewards.  You could be one of these people, if you take advantage of the best real estate opportunity in England. 

The UK has a reputation of being notoriously expensive.  This is true, for the most part.  But very few people know that they can buy a quality property, needing minimal renovation, for less than $50,000.  Moston and Blackley offer such opportunities. As Benjamin Disraeli put it so eloquently, “Certainly Manchester is the most wonderful city of modern times.”  But even if you don’t agree with that ambitious statement, one thing is for sure: Manchester offers the most wonderful real estate opportunity in Europe right now. 
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