Property Investment Manchester
Interest from both domestic and international investors in Manchester has risen rapidly in recent years, with the city’s property market achieving excellent results amid a broader scope of economic growth and development.
If you’re interested in Manchester property investment, then read on to learn more and find a project.
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Manchester: A Summary
Manchester is a leading, world-class city at the heart of the UK’s Northern Powerhouse.
It has been a centre of innovation, creativity and progress for centuries. The industrial revolution began in the city. And a long line of cultural, musical, sporting, and scientific achievements have followed.
In recent years, Manchester has developed at a rapid pace. It is now a vital economic engine for the UK, with a gross added value (GVA) of more than £60 billion – second only to London.
So, it should come as no surprise that Manchester’s property market is flourishing. The strong performance makes it an ideal choice for new and experienced investors alike.
Manchester Property Investment Opportunities
Why Manchester?
When considering where to invest in property, we always recommend looking for these key fundamentals:
- Population Growth
- Transport & Connectivity
- Regeneration & Investment
- Business Growth & Employment
Manchester ticks every box, as we explain further below.
Population
- Manchester’s population has grown quicker than the UK average.
- The city’s population has increased by 280,000 people since 1991, according to data from the Office for National Statistics (ONS).
- Greater Manchester’s population is estimated to grow by a further 10% by 2043, representing an extra 300,000 people.
- The age group seeing the largest increase in population size is 21 to 30 year olds.
- The ONS indicates a 51% rise in this age group since 2002.
- This is helped by two major universities: The University of Manchester and Manchester Metropolitan University, with over 90,000 students between them and a graduate retention rate of 51%.
Transport
- Manchester Airport is the UK’s busiest outside London, serving up to 30 million passengers annually.
- The airport offers routes across the globe, facilitating business, trade, and tourism.
- The motorway and rail network links Manchester with the rest of the UK, with Leeds, Liverpool and Birmingham all close by.
Regeneration
- Billions of pounds have been invested in Manchester since the 1990s, both from the government and private investors.
- The city centre has undergone an almost complete transformation, resulting in a thriving city.
- Key regeneration zones in Manchester include:
- Ancoats
- Castlefield
- NOMA
- The Northern Quarter
- Salford Quays & MediaCityUK
- Spinningfields
Business
- Manchester’s business scene has experienced significant growth in recent years. According to the Centre for Cities, Manchester has the 10th highest number of startups per capita each year.
- In 2019, Manchester’s startup scene attracted over £500 million in venture capital, making it the fastest-growing location in Europe for such investment.
- Major employers, including the BBC, Amazon, Google, and Microsoft, have opened offices in the region.
- This influx of major employers has resulted in increased job opportunities.
- The Centre for Cities reports a 12% increase in private sector jobs in Manchester since 2015, ranking it as the 4th highest in the UK.
Manchester Property Market
House Price Growth
Over the years, Manchester has delivered fantastic capital growth.
Data from the HM Land Registry shows the average property price in Manchester has increased by 25% since 2020.
That said, values have increased faster in some areas than others. The largest increases have come in central Manchester and Salford. This is no surprise. Over the past 20 years, these areas have seen the greatest number of regeneration projects and a huge amount of public and private investment.
Furthermore, research from JLL anticipates that Manchester property values will continue to increase. Their report, the UK Residential Forecasts, predicts an 18.5% rise in values by 2025.
Rental Price Growth
More young professionals want to live and work in Manchester city centre. As a result, the demand for high-quality rental accommodation is higher than ever. And that’s forced rental values to grow considerably over the past few years.
Manchester will see further increases, too. JLL’s UK Residential Forecast estimates that rental values in the city will rise by 12.5% by 2025. As such, Manchester property investment offers buyers the opportunity to make a return through long-term growth of both property value and rental prices.
Rental Yields
Rental yield is an excellent measure of a property’s financial strength. It calculates the rental income of a property against the property’s value.
Historically, Manchester has generated good rental yields, both gross and net, because:
- Property in the city is generally quite affordable.
- Rental prices are healthy in relation to property prices, and they’re rising.
- The city has a limited supply of central, high-quality accommodation but a very high level of demand from renters.
Best Areas
Greater Manchester comprises of 8 metropolitan boroughs (Bolton, Bury, Oldham, Rochdale, Stockport, Tameside, Trafford, Wigan) and two cities (Manchester & Salford). If you are unfamiliar with Manchester and you’re looking to buy an apartment or house in the city, it is worth getting an idea of the different areas.
Below, we have highlighted some of the best locations for property investment in Manchester. For more information, check out our research into the best buy-to-let areas in Manchester.
- City Centre: Manchester city centre is in constant demand from renters. It is home to the city’s biggest regeneration schemes, such as NOMA, Spinningfields, and Ancoats. 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.
- Salford: Salford’s fortunes have turned around completely over the past ten years. This is largely due to the success of MediaCityUK at Salford Quays. Before, Salford Quays were a worn-down region on the banks of the Manchester ship canal. Now, the area has been completely regenerated to create a sought-after hotspot of businesses, housing, and leisure. It has become home to huge companies, like the BBC, ITV, BUPA and others.
- Trafford: Trafford is a stone’s throw away from Manchester city centre (4 km). It is an area with several regeneration projects in the works and more in the pipeline. The council plans to boost housing, education, leisure and retail facilities. The area hosts one of the city’s most interesting and valuable commercial centres, the Intu Trafford Centre. This is the second-largest retail park in the UK and brings over 35 million visitors a year.
- The Northern Quarter: The Northern Quarter is known for its creative spirit. There’s an abundance of independent clothing stores and music venues. Beautiful street art adorns the walls of local buildings. Trendy cafes, bars and restaurants offer some of the best Manchester has to offer in food and drink. The Northern Quarter is a highly sought-after location by renters.
- Ancoats: With rental demand so high in the Northern Quarter, it has overflowed and spilt into Ancoats. The two areas are opposite one another, separated by a single road cutting between them (Great Ancoats Road). Ancoats’ industrial past is on full display throughout the area. Old mills and warehouses have been converted into modern apartment blocks, with plenty of amenities and things to do, too.
- Castlefield: Castlefield begins at the south end of Deansgate. Although it’s in the city centre, it is a walkable area dominated by canals and Roman ruins. It is another area that has gone through extensive regeneration. Many new apartment blocks are being built alongside the canal to meet tenant demand. Castlefield is more relaxed in comparison to the hustle of Deansgate and Market Street. Even so, they’re both within easy walking distance – no more than 5-10 minutes walk.
- Other areas: Other areas to consider for Manchester property investment are Spinningfields, Oldham, Rochdale, Bury, Bolton and Stockport. Each has its own strengths and opportunities, so please speak to one of our team to learn more.
Why Work With Us?
Reputation
We’ve built a reputation as an ethical, knowledgeable and experienced property investment company in Manchester. We use our understanding of the local market to find high-quality property investments, which come at no cost to our clients.
Exclusive Access
We’re often able to get deals that aren’t available to the public. For example, free furniture packs, Stamp Duty support, and even price discounts. For this reason, we tend to look for off-plan properties.
Experience
We’ve helped hundreds of property investors in the UK and abroad to purchase investment properties in Manchester. The city is our first choice pick for new and experienced investors due to the stunning market performance and accessible prices.
Total Support
Finally, we guide you through the entire journey. From a free consultation to extensive due diligence, to finding a mortgage provider and after-sales support. We’re here to help you achieve your property investment goals.
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