Salford Buy-to-Let Guide

According to Rightmove, the average price of a property sold in Salford over the past year was £222,535. According to the UK House Price Index, the UK average property price is £284,691, meaning Salford is still affordable compared to the rest of the country. It is also cheaper than property to buy in Manchester City (£242,523), making it a cheaper alternative for those who want to invest in this region.

Salford’s average property price is 12% down on the previous year and 9% down compared to 2021. This is characteristic of the UK property market in 2023, as it was a challenging year with sluggish growth and modest price dips in some regions. But is this set to continue?

Most property market forecasts predict a return to healthy growth for the UK. In particular, Savills Residential Property Forecast states that the North West is set for growth of 20.2% leading up to 2028, which is higher than the UK average of 17.9%. This is promising news for Salford property investors.

Salford has diverse types of properties with investment potential. This includes terraced, semi-detached, detached houses, bungalows, cottages, apartment blocks, and purpose-built student accommodation.

Apartment buildings make up a significant portion of the properties in Salford Quays due to the area’s popularity with young professionals who rent.

According to Rightmove, flats were the most popular type of property in Salford last year, selling for an average price of £197,906—terraced properties sold for an average of £216,951. In contrast, semi-detached properties went for £257,577.

Average Property Prices in Swinton

The average property price in this area is £246,809.

Average Rental Yield in Swinton

The average rental yield in this area is 7.23%.

Average Property Prices in Worsley

The average property price in this area is £270,562.

Average Rental Yield in Worsley

The average rental yield in this area is 5.03%.

(Average property prices taken were from Rightmove in early 2024; rental yield estimates were calculated with figures from housesforsaletorent.co.uk in the same period)

What is the Best Area of Salford to Invest in?

Areas further away from Manchester are popular residential areas but are bound to have less demand than central districts when it comes to renting, and the average rental yield is lower compared to other parts of Salford.

Suburban areas like Swinton and Pendlebury can offer good rental yields and are popular with commuters into central Manchester. But central districts of Salford, such as the Salford Quays area, are more affordable and have high rental yields, making Central Salford property one of the best things to invest in.

Regeneration

Regeneration is a key indicator of future demand for an area and capital growth, so it’s worth taking notice of planned schemes for towns and cities of interest. Salford is one of the biggest regeneration success stories in the UK, and it has shown phenomenal growth in a short space of time. But does that mean the city is past peak growth?

Not according to Salford City Council, which considers Salford’s growth to be ‘unfinished business’. They plan to deliver 40,000 new homes and 40,000 new jobs across strategic growth locations by 2040 through ambitious regeneration schemes. The local economy is forecast to grow by over 46%, with £3 million of growth.

Location and Travel Links

Salford residents benefit from proximity to central Manchester and excellent transport links.

There are two nearby train stations, Salford Central and Salford Crescent, with frequent trains to Manchester and other cities such as Liverpool and Leeds. Salford is also part of Manchester’s tram network and is well-served by buses. Some areas of Salford are also within walking distance of Manchester City Centre.

When it comes to travelling by road, Salford is also well located for the A6, A580, M602 and M60. Conveniently situated cities like Salford are bound to enjoy popularity with commuters, adding to rental demand.

New builds are growing in popularity as property investments in recent years. However, a new-build property will typically be more expensive than an older one. So, as the property investment trends have shifted towards new builds, off-plan is gaining more attention as a way to acquire a new-build property at a lower price point.

As mentioned, Salford is a popular location for new-build properties, and there seem to be off-plan investment opportunities in the area. Off-plan options are usually more concentrated in major cities, so investors may also take a look at other North West urban centres such as Manchester and Liverpool to see what other off-plan opportunities are on offer.