A world-class 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 consider this city as the location of their next property investment.
So why invest in Manchester? With such a strong property market offering investors the most attractive rental yields and best capital growth prospects, Manchester investment is a fantastic option for anyone looking to make big returns. Take a look at this Manchester investment guide for some reasons why you should think about making a buy to let investment in the UK’s ‘second city’.
A high-performing property market
The Manchester buy to let 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 Manchester in the property market spotlight.
Every Manchester investment guide is filled with beaming statistics and figures that shine this city in a good light. One thing that continues to come up in regards toManchester property investmentis rental yields, and researching these is a huge piece of Manchester property investment advice to keep in mind. A number of Manchester postcodes generate some of the most attractive yields in the UK, such as the M14 postcode which boasts average yields of 11.25 per cent.
Both rental costs and property prices are rising across Manchester, 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 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. 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 has remained 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.
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.
MediaCityUK, located in Salford, is home to a whole host of major companies. 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 the MediaCityUK area, fuelled by young professionals seeking quality rental properties close to their workplace. Investment opportunities in Manchester include our Hollywood Manchester apartments which are located within MediaCityUK and come with 8 per cent net rental returns.
A forward-thinking outlook
Manchester is constantly looking ahead and thinking of new and exciting ways to improve. 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 the appeal of Manchester buy to let investment. 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.
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. Other plans in place include transforming Manchester Piccadilly station into a ‘gateway’ for the city.
A thriving student scene
Along with the herds of young professionals that regularly flock to Manchester, 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 to invest in Manchester’s buy to let market will be met with demand from a range of potential tenants, including students.
Student accommodation investment
So why invest in Manchester student property? With such high student demand in Manchester, 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.
Student properties are typically cheaper to buy than residential properties, but with just as high rental yields. 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.
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. With properties in Liverpool and Manchester, we recognise the power of the North when it comes to buy to let, both now and in many years to come. Visit our Manchester page to browse our latest investment opportunities in Manchester and stay up to date with Manchester investment news, or contact us for some Manchester property investment advice from our property professionals.