Manchester city centre is an innovative, exciting place to live, with extremely buoyant job and property markets. All of this is having a direct impact on increased rental demand and high yields are attracting more investors than ever before. Because of this, the demand for stock in the area is at unprecedented levels.
As a result, many private property developers are looking elsewhere and Manchester’s neighbouring areas are very appealing. Thanks to its strategic location and huge regeneration plans, Oldham is one of those attractive boroughs.
When you consider the meteoric rise of Salford’s property market, which grew by 12% alone in 2014 in large part due to the success of MediaCity, it’s clear to see how strong expenditure can revolutionise an area. Oldham could be the next town to benefit in this way.
Bordering the North East of Manchester, Oldham is an affordable Northern town that has plenty of readily available property to purchase. Its enriching history, excellent commuter links and array of local amenities has made it a desirable new area for real estate developers.
At MIPIM 2018, a main talking point was the masterplan for a £350m revitalisation of Oldham town centre. The strategy, proposed by Oldham Council’s Tom Stannard, is an ambitious 21-acre project, which is set to transform the town over 15 years.
It includes plans for 900 residential units, retail and leisure facilities and an array of offices. In total, the scheme could add £50m to Oldham’s annual economy and create hundreds of new jobs.
Although an incredibly ambitious task that will take years to come to fruition, the plans solidify an upsurge in investment in outer-city towns.
Initiatives like this, along with the ongoing Northern Powerhouse project, confirm that private developers should not feel limited to city centres alone. Investment opportunities are available elsewhere.
Expanding our horizons
Here at HS Property Group, we know what this financial stimulus could mean for Oldham. The scheme will provide strong investment opportunities for both the public and private sector and help create a credible alternative to city centre living.
Among the promises of transformation however, there remains an ongoing issue of poverty within Oldham – the town was once described as “the most deprived area in England.” Private developers that aim to affect positive social change, such as ourselves, know that investing in the right kinds of property in the area can benefit residents with low incomes.
Working collaboratively with housing associations and local authorities to increase the supply of genuinely affordable homes is beneficial to all involved. The creation of high-yielding private homes, such as HMOs, can offer strong profitability and be well received by those struggling to pay rent to private landlords.
Moreover, increasing the quality of social housing by working with private real estate companies can ensure that housing associations and local authorities offer a better standard of properties to their tenants.
Oldham is a viable living area in Greater Manchester and investment in its housing market should mirror this. Creating high-calibre, affordable homes that complement rejuvenation plans is the key to ending old stigmas and creating a brighter future for Oldham.