Manchester’s BTL market is second only to London in terms of potential…

The decision of the Bank of England to keep interest rates on hold yesterday may tempted some to predict more hard times ahead for the property industry. Notwithstanding the widespread expectation that rates will fall next month, there are many who would beg to differ.

Buy-to-let is certainly one sector where this is increasingly the case. Speaking to 999 Today, Neil Young, chief executive of the Young Group property investment firm, said the issues are not all about the wider economic situation.

He commented: "People need to remember when investing - whether in a bull or bear market - that it is buying well that ensures a good investment. This was true in the first half of 2007 when the market was strong and is still true as we move into 2008."

Landlords remain confident

Because of this, he added, buy-to-let remained a "solid medium to long-term investment class," underpinning the view expressed so frequently by the industry that it is only those looking for a short-term investment who will suffer due to short-term problems.

 As the recent Association of Residential Letting Agents survey found, 90 per cent of landlords plan to hang onto their portfolios for at least another decade, with the average investment lasting 16.7 years.

Furthermore, there are still plenty of locations where those involved in the property industry insist the market is still strong. One of these is Manchester, which now has over 20,000 people living in the city centre, while more apartments are being constructed not just in the central business district but increasingly in adjacent areas such as east Manchester and Salford.

Stuart Law of Assetz told the Manchester Evening News this week that there would be no house price crash in the northern city, commenting: "If you had to pick any city centre, apart from London, where it was not going to happen, it would be Manchester."

BBC boost

This view was shared by David Lloyd of developers City South Developments, who told the paper that a range of new factors would continue to drive the Manchester market, including business growth, the New East Manchester project, the expansion of the Metrolink tram service and the Media City project at Salford Quays.

In the latter case, the arrival of four BBC departments at Salford Quays, apart from its wider effects on the media industry in Manchester, will also bring up a number of BBC staff from London to live in western districts of the Manchester city region. Reporting on this, Virtual Manchester noted that property firm prospect expects house prices to climb in the area as TV personalities closer to their place of work.

While the credit crunch may have a short-term effect on the property market, various locations will look to other factors to boost their fortunes in the longer run. Liverpool will seek a special boost this year from its City of Culture Status.