Buy-To-Let In Manchester
Manchester is one of the most exciting cities in the UK for buy-to-let property investment. A growing population, 3 prestigious universities and consistent growth in property and rental values has driven vast economic investment in the city.
With new developments spread out over several areas such as Media City, Salford, Ancoats and the student friendly areas of south Manchester, there are a growing number of suitable buy to let properties for all investors.
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Current Buy-To-Let Opportunities In Manchester
Why Buy To Let?
Buy to let properties are one of the most popular options for investors looking to enter the property market. This is because there are many benefits of buy-to-let ownership over other forms of property investment, these include:
- Significant growth in capital
- Regular rental income
- Fully managed properties
- Substantial demand for property
- Leverage finance for acquiring property
The property market in the UK is expected to grow at an increasing rate over the next few years as political and economic stability return in a post-Covid, post-Brexit market. More investors than ever before are choosing Manchester as their number one city for buy to let property investment and it’s not difficult to see why.
Why Invest In Buy-To-Let In Manchester?
Manchester's Rental Value Growth
Boosted by higher demand than ever, the average rental price in the northwest has increased on average 6.3% year on year, up over 12% since April 2019. Being one of the most economically productive and culturally significant cities in the UK Manchester is in the ideal position to capitalise on this growth.
Real estate consultancy company JLL forecast an estimated increase in Manchester’s rental value of 12.5% by 2025, substantially outperforming the UK average and recovering quickly from the effects of Covid.
Manchester's Rental Yields
Rental yields are a strong indication of the strength of an investment and the desirability of an area for people looking to rent properties. Rental yield is calculated by dividing the total rental income over 12 months by the properties total value, resulting in a percentage known as rental yield. Obviously the higher this number, the more profitable the investment.
Manchester’s rental yields are usually among the best in the UK, far outperforming London and southern England. This is bolstered by reasonable property prices and an influx of young professionals and students creating constant demand for rental accommodation. These factors often see Manchester named the best city in the UK for landlords.
Property Value Forecast
Rental Price Forecast
Best Areas For Buy-To-Let Investment In Manchester
Whilst the highest rental yields are to be made in investment properties in the City of Manchester, higher than average property prices can deter some investors from choosing a more centrally located property. Greater Manchester covers a large geographic area with Salford and the City of Manchester nestled within the surrounding boroughs. Below are some of the most popular areas for investment into the region:
Manchester’s bohemian and artistic hub, the Northern Quarter is home to a range of indie bars, fashion designers, art galleries and music venues. A modern cultural hub and located next to the Piccadilly area and it’s large network of transport links, demand for rental property is high, making it a very attractive prospect for buy to let investors.
Neighbouring the Northern Quarter is Ancoats, an area which has undergone significant regeneration. It’s old mills now house modern apartments, highly regarded bars and restaurants, including Manchester’s first Michelin starred restaurant since 1977.
The average property price in Ancoats is £214,800, it has increased by 23% over the past 5 years.
Slightly further out from the city centre is Salford Quays. Once providing the city with a vital supply of goods during the industrial revolution, it is now home to the BBC and ITV after an initial £650m investment into the development of Media City with a further £1bn in private investment into the area by 2030. The area is home to many digital and creative industry businesses.
The average property price is £248,833 (Zoopla) although flats in the area can go for a lot less.
Trafford is an area with some world class attractions, such as Old Trafford football ground and the Trafford Centre. Well serviced by transport links including the completion of the Trafford Centre Metro line in 2020, Trafford sits along the border with Cheshire and it covers areas such as Altrincham, Sale and Stretford.
Rental yields in the more affluent areas such as Altrincham can be quite low at around 3% however in other areas like Stretford it can be as high as 6%.
Investing In Student Buy-To-Let Accommodation In Manchester
Manchester is known for it’s three universities: The University of Manchester, Manchester Metropolitan University and the Royal Northern College of Music. Between them they attract just under 100,000 students a year to the city with an impressive graduate retention rate of 51%, the second highest in the country, only behind London. Of these nearly 100,000 students, international students will form approximately 20% of the population, attracted by the internationally renowned level of education provided by the city’s educational institutes.
This means that there is consistent and growing demand for varying types of student property to suit all budgets, from houses and city centre apartments to purpose built accommodation on or near campus. This demand coupled with the ability to select properties within a suitable budget for the investor means that there is the potential for high rental yields.