A world-class United Kingdom city filled with vibrant communities and a huge talent pool of people, it’s easy to see why Manchester is often considered ‘the capital of the North’. Manchester is already celebrated as a fantastic area for all things business, and with so many exciting up and coming areas in Manchester in 2019, more people are starting to explore the real estate market and considering investing in Manchester.
So why invest in Manchester property? With such a strong property market offering investors the most attractive rental yields and best capital growth prospects, buying a Manchester investment property is a fantastic option for anyone looking to make big returns from the thriving Manchester rental market. Take a look at this Manchester investment guide with information on where to invest in Manchester and some reasons why you should think about making a buy to let investment in the UK’s ‘second city’.
Why invest in Manchester reason 1 – A high-performing property market
The Manchester property market is booming, displaying signs of even further growth on a global scale. Just one look at the investment opportunities Manchester offers, and the appeal of buy to let investment in this city becomes even more apparent. Below average house prices, high rental yields, and growing property prices have all put the north-west’s top city in the spotlight compared to other UK cities for UK property investments. When it comes to buy to let investments within a top UK housing market, Manchester is your go-to city.
Every Manchester investment guide is filled with beaming statistics and figures that present the city as a good investment. One thing that continues to come up in regards to property investment in Manchester is rental yields, and researching these is a huge piece of Manchester property investment advice to keep in mind. Rental yields are one thing that every property investor looks at before purchasing a property, and it’s important to know where to invest in Manchester for the best yields. A number of postcodes in the Manchester property market generate some of the most attractive yields in the UK for investments in property, such as the M14 postcode which boasts average yields of 11.25 per cent.
Both rental costs and property prices are rising across the Manchester property market, with the average price of a two-bedroom flat having risen by 8.7 per cent in 2017, while rents rose by 3.2 per cent in the same period. Although property prices are increasing, properties in Manchester are still some of the most affordable in both the north west and the UK, with an average of £173,381.
Growing house prices
One of the biggest pieces of Manchester investment news lies with property price growth. From June 2017 to June 2018, capital appreciation in Manchester had grown by 7.4 per cent – almost double the national average of 4.6 per cent and at the fastest rate compared to London house prices. Manchester property market forecast predictions show that further growth of 22.8% is predicted over the next four years, making now the perfect time to get started with a new Manchester investment.
A resilient economy
The UK has faced a lot of uncertainty over recent years, but the Manchester economy and market continues to be as resilient as ever. While cities in the South like London continue to struggle following the result of the EU referendum back in 2016, Manchester’s property market has overcome these difficult times.
Why invest in Manchester reason 2 – A bustling business hub
Manchester boasts a famously high level of demand for rental properties, and this is partly down to the huge business scene within the city. There are business opportunities in every sector, in both large and small businesses, creating plenty of appeal for young professionals hoping to make their mark on the city.
Sectors like manufacturing, business and finance, life science and healthcare, and digital and creative within the city are worth an annual total of over £4 billion. Employment growth within Manchester has increased by 84 per cent between 2002 to 2015, with no signs of slowing down over the coming years. This reinforces Manchester’s status as a good investment location for those targeting young professional tenants.
MediaCityUK, located in Salford, is home to a whole host of major companies which makes it one of the best places to invest in Manchester residential developments. Some of the big names based in MediaCityUK include BBC and ITV, reinforcing the area’s influence as a hub for media and tech-based careers. Property investment companies in Manchester are noticing the greater demand for properties in and around this Salford Quays area, fuelled by young professionals seeking quality rental properties close to their workplace. Property investment opportunities in Manchester include our Hollywood Manchester apartments which are located within MediaCityUK and come with 8 per cent net rental returns.
Why invest in Manchester reason 3 – A forward-thinking outlook
Manchester continues to constantly look ahead and think of new and exciting ways to improve, which is why the Manchester property market forecast paints this city in such a promising light for future investments. Those who want to invest in Manchester should always consider the future, as capital growth is a major element that can help you maximise your returns.
Regeneration plays a big part in both the UK economy and the appeal of the buy to let investment Manchester offers. There are so many up and coming areas in Manchester in 2019 that have come a long way thanks to regeneration. A prime example of this is with MediaCityUK, which has been built upon the Manchester docks in Salford Quays.
The focus on regenerating Manchester has a lot to do with the city’s prominence as a Northern Powerhouse city. The Northern Powerhouse initiative was introduced as a way to take some attention away from the South and create more awareness of the key cities of the North of England, encouraging more investment into the area.
Future regeneration plans are in place to improve the city further, including the introduction of a new St Johns neighbourhood which will introduce new jobs, housing, and attractions to the city centre.
Manchester – and the North of England as a whole – has long been known for its exceptional connectivity, with transport links bringing cities, businesses, and people together. Many people commute to Manchester from nearby cities like Liverpool, and vice-versa, which is why strong transport links are so imperative to the city.
To help maintain Manchester’s strong status as a key Northern Powerhouse city, plans have been put in place to improve the cities transport services even further. By 2022, the Great North Rail project is set to come into effect. This project aims to allow 40,000 more passengers to travel throughout Northern cities on a daily basis, increasing tourism and interest in the city. Manchester property market forecast predictions expect big things from this improved connectivity and regeneration across the city. Other plans in place include transforming Manchester Piccadilly station into a ‘gateway’ for the city.
Why invest in Manchester reason 4 – A thriving student scene
Along with the herds of young professionals that regularly flock to Manchester seeking residential properties, the city is also a major student hotspot. Manchester is home to a number of major universities such as the University of Manchester, the UK’s largest single-site university campus, attracting high numbers of students from the UK and overseas.
Manchester already has 24,000 student bed spaces, but the constant demand for new student developments and living spaces is driving the perpetual motion of Manchester’s buy to let economy. The demand far exceeds the current supply and those who choose investments in Manchester buy to let will be met with demand from a range of potential tenants, including students.
Student accommodation investment
So how about student property in Manchester? With such high student demand in the Manchester property market, investors who purchase a student buy to let property won’t be short of tenants. However, that’s not the only reason why student accommodation makes such an attractive investment option when finding a property in Manchester to invest in.
Student properties are typically cheaper to buy than a residential property, but with just as high rental yields. This is what makes student accommodation one of the best options for investment in the UK. Yields are particularly high with more luxury and high-end student apartments, as students are happy to pay greater amounts for accommodation that meets their standards. If you’re looking to make a lucrative investment in Manchester that will provide you with high returns for a long time, student property is definitely worth considering. Some of the best places to invest in Manchester student accommodation include Manchester city centre, Fairfield, and Didsbury.
Why invest in Manchester property with RW Invest?
We’re one of the best property investment companies Manchester has to offer, bringing our clients the most attractive opportunities with the best yields. Our client testimonials reveal the strong track record of success stories we have for investment in the UK, always striving to keep our clients happy with all aspects of their investment journey.
With properties in Liverpool and Manchester, we recognise the power of the north west when it comes to UK property ventures, both now and in many years to come. If you’re ready to invest in the UK rental market, Manchester properties available with RW Invest are a great option. If you’re still asking “should I invest in Manchester property?”, make sure you browse our latest Manchester investments and stay up to date with our Manchester investment news and investor guides for more information on this fantastic city. Alternatively, contact us for some on advice from our property professionals on making your investment in Manchester.