Has the Manchester Property Crash started?
Manchester has seen significant growth over the last decade seeing a new comunity flourish within the city centre. With the creation of Castlefield and the conversion of many buildings the population has grown and grown within the city centre.
The question I ask is have the property developers become to greedy by over supplying the city centre with flats and apartments. Flats and apartments have sprung up all over Manchester and there seems no end in sight as they continue to bulid Flats and apartments in Manchester.
As the flats and apartments go up you may notice so do the To Let and For Sale boards which are becoming more and more common outside such developments. With amateur buy to let landlords and property developers becoming greedy, Manchester is heading for a property crash. The city centre now holds hundreds of empty flats and apartments that are haemorrhaging money and will soon be on the market.
With rising mortgage costs rentals yields are dropping because of the competition to fill the city centre flats and apartments. The question is that how long it will be until the Manchester Property Crash takes hold and repossessions rise and rise.
Good buy “buy to let” and good buy private landlord as the Manchester Property Crash has started. Cheap lending once seen as the backbone of the UK property boom has now come to an abrupt end and it may leave allot of property owners in a sticky situation when they come to remortgage.
Enjoy Manchester expects the Manchester Property Crash continue for years to come although one saving grace is that if mortgages dry up then there will be an increased need for city centre flat rentals. If rental demand does increase due to more stringent mortgage lending criteria then rental prices will increase leaving non home owners in a no win situation. They can not get a mortgage and can not afford rent!
What ever is in store over the next few years one thing is for sure, its goodbye good times and hello to watching every penny!