When a large and influential commercial property is constructed or refurbished, it can have the power to revitalise an area. The UK saw an example of this when the Olympic and Paralympic complexes transformed the East End of London from a relatively poor area to one which appeals to both businesses and families looking for a new home.
Another example of how an area can be transformed for the better is Salford, which has gone from strength to strength following the construction and consequent occupation by the BBC, among others, of Media City.
Once a relatively unremarkable suburb of Manchester, Salford now boasts one of the most desirable housing markets in the UK with prices for residential properties outstripping everywhere except London.
In only a year, house prices on average have risen by 6.8 per cent in Salford, according to figures released by the Land Registry. While this doesn’t quite measure up to the 8.4 per cent annual increase recorded for London, it certainly outstrips the national average of a 1.7 per cent increase several times over.
Of course, much of this welcome price boom can be put down to the fact that several thousand BBC employees have upped sticks and migrated north. As it stands, the broadcasting giant has facilitated the relocation of around 2,300 staff members to take the helm on sporting and children’s television, as well as the popular Radio Five Live channel. However, this total is due to steadily increase by a further 1,000 in the years leading up to 2017.
Yet relocated BBC staff have a distinct advantage when it comes to buying or renting residential property in Salford Quays. Generous relocation packages allow most tenants to claim as much as £1900 per month, while those looking to purchase can claim a significantly larger amount back from their employer.
Furthermore, the stamp duty, legal fees, removal costs, estate agent charges and a limited budget for fixtures and fittings will also be provided for those looking to put down permanent roots in the North West.
Hannah Gretton, of estate agents Reeds Rains’ Manchester office, claims that the arrival of Media City gave a much needed boost to the area’s commercial property base, with coffee shops, restaurants and supermarkets springing up to cater for the influx of new inhabitants. This, she claims, has transformed the “soulless” area to one with much more appeal for tenants and first time buyers.
She continues; “As a result, there’s now a much wider range of rents around here than there used to be – if you’re looking for a two bedroomed place, you can find somewhere small on the other side of Trafford Road for £650 per month, or you can pay up to£2,000 per month for a big spectacular place with views.
“If you’re buying, you can get a 10 year old studio flat for £70,000 or a fantastic penthouse in the NV building in Salford Quays for £750,000 to £800,000.
“The market is moving; not only are existing properties selling quicker but new ones are coming on stream too. There’s a whole range of renovated apartments being created in the old Ordsall Triangle area, plus a lot of places on Chapel Street near Salford University.”
Media City, then, has had a huge effect upon an area where house prices had fallen steeply only a decade ago. In the year 2000, negative equity was a grim reality for around 79 per cent of Salford residents, with some properties being sold for as little as £5,000 by estate agents desperate to offload them.
In fact, several estate agents actually offered a supermarket style “Buy two get one free” offer on residential properties which refused to budge – making the Salford of today a veritable heaven for buy to let landlords who snapped up this offer.
While house prices in the area still have a long way to go before reaching the dizzying heights of the London residential market, it is clear that the colonisation by the BBC has already begun to shape the future of the area.
Once again this demonstrates the ability of commercial developments to transform the fortunes of neglected former industrial districts.
