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Property Investment In Manchester
From the birthplace of the industrial revolution to most successful city for attracting foreign direct investment outside of London and winner of ‘Best UK City for Business 2019’ (Management Today), Manchester is an important economic engine driving the UK’s growth and prosperity, with a gross added value (GVA) of circa £62.8 billion putting it at the heart of the Northern Powerhouse.
The regeneration that has taken place in Manchester over the years has led to it becoming a thriving city. It has proven its attributes to be seen as leading the way for the Northern Powerhouse. There are numerous developments and ongoing regeneration within the city, which has attracted jobs and increased rental demand.
One major redevelopment project exemplifying this is MediaCityUK; a hotspot for businesses, housing and investment which is home to big names such as ITV, BBC and Kellogg’s.
Why invest here?
Manchester is a world-class city offering a great place to live, work, and study. It is a great hub for business and has excellent transport and infrastructure. When we factor in these attributes along with the city’s affordable property prices and strong rental demand, it really is a great place for property investment. Manchester has had excellent capital growth over the current years and displays the fundamentals for that to continue.
With current and future regeneration in the pipeline, capital growth should remain strong. Not to mention, the second phase of the HS2, which includes Manchester, is due to open circa 2035 and will cut the time it takes to reach London from 127 minutes to 67 minutes. It will be a catalyst for the region’s growth, delivering new jobs, new homes and new opportunities.
All of these factors together means Manchester is top of the leaderboard as a superb buy-to-let location in the UK.
Types of Investments
Rental demand is booming in Manchester, meaning investors are benefiting from fast-rising rental prices. Research by Ideal Flatmate reported that between 2014-2019 Manchester properties saw an average rental price growth of 37.8%. Furthermore, House Price Index records house price growth of 37.9% between 2015-2020 and JLL predicts growth of 17.1% over the next 5 years. These factors make Manchester one of the UK’s top cities for buy-to-let investing.
Manchester was recently voted one of the youngest cities in Britain, with the region home to around 90,000 students. The high demand for student property means investors will benefit from filled rentals and good returns. Plus, Manchester’s global profile is on the rise, and it now has the highest percentage of overseas students of any UK city outside of London. If you were interested in student accommodation then Manchester is a place to keep an eye on.
If you are unfamiliar with Manchester and you’re looking to purchase an apartment or house in the city, it is worth getting an idea of the different areas. We have highlighted the three main locations we consider the best for property investment in Manchester.
There is constant demand from renters for city-centre locations in Manchester, which is one of the many reasons it has fast become an excellent place for property investors. You can find some of Manchester’s biggest regeneration schemes here, such as NOMA and Spinningfields. The population in the city centre is largely made up of young professionals and students, making it a great hub for landlords wanting a prime tenant demographic. Zoopla (June 2020) states that the current average price paid for a property in Manchester city centre is £211,791 and in the last five years prices have increased by circa £45,000 (25.5%).
Leading the way in the popular Salford area is the new business focal point, MediaCityUK. This development is home to the likes of ITV, BUPA and the BBC. This has led to investors being drawn to Salford to capitalise on the thriving tenant demand that MediaCityUK has produced. Salford has now become known as a business hub and this means more young professionals are drawn here, with Zoopla estimating an average rental asking price of £1,042 pcm. Zoopla also reports a current average asking price of £187,256 for purchases.
Located a stone's throw away from Manchester city centre (4 km) is an area with many ongoing and upcoming regeneration projects, Trafford. This includes one of the city’s most interesting and valuable regeneration projects, the Intu Trafford Centre. This is the second largest retail park in the UK and brings over 35 million visitors a year. Furthermore, the Trafford area attracts many young professionals which makes it another popular investment spot within Manchester. There are more regeneration plans in the pipeline, set to boost housing, education, leisure and retail facilities in the area. According to Rightmove, the average price for a flat is £196,925 and prices are 8% up on the previous year.
The other areas that you may want to consider are Spinningfields, Oldham, Rochdale, Bury, Bolton and Stockport. Each has their own strengths and opportunities, please speak to one of our team to learn more.
Frequently Asked Questions
Below you can find a range of common questions from previous investors. If you require specific details and advice please do not hesitate to contact us today on +44(0)203 627 3987 or via [email protected]
If you are looking for quicker capital growth in the short term then Manchester tops our list. JLL predicts a 17.1% increase in the next five years.
According to Zoopla (June 2020), the average price paid for a property in Manchester is £199,433, which is still a reasonable price for such an in demand investment hotspot.
According to House Price Index, they have increased 37.9% between 2015 – 2020.
Depending on where you invest, even with the rising prices and demand, you can still get good yields Manchester. The M1 postcode can provide a yield of 5% and when you factor in capital growth alongside this, your potential return on investment starts to look very impressive indeed.
The HS2 will be hitting Manchester and it will nearly half the current travel time to London, meaning it will take just 67 minutes to get to the capital. Plus, the redevelopment of Manchester Piccadilly Train Station and the surrounding area is expected to create 40,000 new jobs and 13,000 new homes, which represents one the largest development opportunities in the UK.