Property Investment Manchester – Everything You Need to Know

A melting pot of culture, business, and leisure, the stunning North West city of Manchester is delivering some of the highest returns ever seen in the UK property market. 

With property prices significantly below the UK average, and thousands of students and professionals flocking to the city every year, Manchester property investment is quickly becoming one of the best investments possible in the UK. 

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Manchester Rental Market Data 

Alongside the booming Manchester property market, Manchester’s rental sector is also seeing huge growth. 

According to Zoopla data from 2022, the average rental income per month in Manchester lies at around £1,608. 

This is £548 higher than the UK average, despite average UK property prices being 26.72% more expensive than in Manchester property investment. 

Due to massive rental returns and low prices, investment properties in Manchester can generate average gross rental yields of 7.37% – higher than the average rental yield in Birmingham, Leeds, London, and Leeds! 

These statistics are only going to get better, too. A recent report from JLL has predicted a rental price growth in Manchester of 3% in 2023 – higher than the UK average (2.5%).

As such, there’s likely never been a better time to invest in Manchester buy to let property. 

Manchester Rental Market Undersupply 

A big reason behind the massive growth seen in Manchester’s property market is down to a huge undersupply of properties in the city. 

Across the UK, tenant demand has hit a record high, with a 2022 report from Rightmove finding that the number of buyers enquiring about UK homes is 15% higher than the same time last year. 

This demand is even higher in Manchester. A study from Zoopla in 2020 found that the ratio between supply and demand in Manchester is around 1:5. This means for every single property, five people want a home.  

These figures continued into 2021, with Manchester rental market demand so high that property supply reached its lowest ever level, according to Urbanbubble. 

It’s not surprising that this is the case when you look at how much the Manchester population has grown over the last two decades. 

According to the Manchester Evening News, the Greater Manchester population increased by 7.7% between 2006 and 2016 – double that of the UK average.  

This growth was higher in the city of Manchester, with the population now 27.8% higher than 30 years ago.  

More people than ever need a home in Manchester, which is good news for buyers looking at tenanted property for sale near Manchester. Not only can you expect consistent rental demand, but long-term capital growth is also huge. 

Manchester Buy to Let Property Price Predictions 

Predictions for buy to let in Manchester show a bright future for the local housing market.  

According to industry experts JLL, Manchester prices are set to see a 4.5% rise in 2023. 

This is followed by a 4% rise in 2024, a 4.0% rise in 2024 and 2025, and a 5.0% rise in 2026.  

Overall, between 2022 and 2026, JLL expects property prices to rise on average by 4.7% per year. 

It’s a similar story according to Savills, who outlines regional house price growth predictions by 2027.

They found that the North West region will see the joint-highest growth in the UK alongside Yorkshire and The Humber, with prices expected to rise by 11.7% by 2027. London, in comparison, is expected to see -1.7% growth due to huge decreases in property values.

These figures reinstate that the North is looking a lot more promising than the South when it comes to property market growth, with Manchester buy to let property out in front as a key investment area. 

Manchester Population

There are currently over half a million people living in the city of Manchester, with a large part falling under the ‘generation rent’ age group. 

Based on population estimates from 2018 by the local government, around 37% of Manchester’s population is aged 18-34.   

In fact, the average age of a person living in Manchester is around 33, which is incredibly young, and is a big factor behind why Manchester buy to let is such an attractive investment strategy. 

Since young people are statistically more likely to rent – with one in three millennials said to never own a home of their own – a high population of young people can dramatically boost the demand for a rental property in Manchester.   

This is great news for investors looking to buy an apartment in Manchester, and a young population also opens the door to buyers making a student property investment.  

The population is predicted to increase even further, too, with estimations that the population in Manchester will increase by 56,000 by 2034.  

According to Cushman & Wakefield, job opportunities are a driving factor for this growth.  

It’s anticipated there will be 3,100 new jobs per year, many of which will be high salary jobs in the city centre.  

Manchester Buy to Let Student Market 

With over 100,000 students in Greater Manchester and a large bulk focused on the city of Manchester, the region is a fantastic choice for both residential property and student property. 

Offering a much-loved student scene filled with world-class restaurants and nightlife opportunities, the city is known throughout the world as a student city. 

The likes of Manchester Metropolitan University, the University of Salford, and the University of Manchester are some of the best in the world, with the latter voted in the top 30 in the world in 2021. 

Student accommodation can be a compelling option for property investors looking at Manchester city centre, with higher rental yields and lower average house prices than residential property. 

If you want to learn more about Manchester property investment opportunities in the student sector, then read our guide to Manchester student property investment. 

High Manchester Buy to Let Demand From Young Professionals 

Students are a mainstay in Manchester, with around 51% of graduates choosing to stay in the city to work, which is the second-highest in the UK.  

This has led to a considerable sector of young professionals working in the city, which has continued to propel the housing market even further.  

These young professionals have been attracted to the city for three key reasons.  

1. Living in Manchester is incredibly fun thanks to a lively nightlife scene, a wide range of cultural attractions, and plenty of things to see and do.  
2. The city boasts a thriving business scene in areas like Spinningfields and Salford.  
3. The city is incredibly affordable for young professionals.  

The second and third points are huge contributors to the rising population.  

A whole host of major businesses and start-ups reside in Manchester, offering young professionals lots of opportunities to succeed in the city.   

In fact, Manchester and Liverpool were voted in the top 10 locations in the world for business start-ups.  

Record numbers of young people have reportedly been leaving London for Manchester as of late.   

London was once considered the place to be for young professionals, but the high cost of living in the capital has led many to look elsewhere.   

According to Numbeo, Manchester consumer prices, including rent, are 32.31% lower than London. This has led to 13% of people leaving the capital to move up North.  

This rise in the Manchester city centre population makes young professionals one of the best tenant groups to target for Manchester property investment.   

Why Invest in Manchester? 

Thousands of investors are choosing to invest in Manchester property.   

But why is property to let in Manchester such a popular option? Why do investors choose the North West city over the likes of London and Birmingham?  

Well, property investment in Manchester isn’t just an excellent choice when factoring in rental yields, house prices, and rental demand, but the city also offers world-class infrastructure, regeneration, employment opportunities, and economic growth. 

For these reasons, you can find some top property to buy in Manchester. By finding a Manchester investment property for sale, you can set yourself up for huge success.  

Manchester Infrastructure and Transport

Voted ‘the best city to live in the UK’ on numerous occasions, Manchester boasts excellent transport links and connectivity for its rapidly rising workforce. 

The world-class transport links in Manchester make it easy for residents to commute between other key cities in the UK.   

The city’s high-quality rail network and motorway network means that those living in Manchester can easily travel to nearby cities like Liverpool and Leeds in less than one hour.   

Other major cities like London, Glasgow and Cardiff are also easy to reach, with a train ride to the capital taking around 127 minutes.   

Notably, the new HS2 expansion to Manchester Piccadilly will reduce travel time considerably.  

It will halve travel to London to 67 minutes and reduce travel time to Birmingham from 88 minutes to just 40.   

This is great for the city’s young professional crowd of renters, increasing the appeal of living in Manchester and boosting opportunities for Manchester investment.  

Along with transport links to other cities, Manchester city centre also boasts a sophisticated tram system.   

The Manchester tram system allows residents and tourists to travel around the city centre with ease and reach other parts of the city like Altrincham, Bury, East Didsbury, Ashton-under-Lyne, Eccles, Rochdale and Manchester Airport.  

Manchester Amenities 

You may be asking “is Manchester a good place to live?” before you decide to invest in the area.  

And the simple but effective answer is: Yes.   

Manchester is a great UK city to live in, offering residents an excellent quality of life.  

With a famous shopping scene, eclectic nightlife, an endless range of leisure attractions and plenty of restaurants and bars, Manchester is one of the UK’s biggest tourist spots.  

Floods of people head to this Northern city each year for music events like the Warehouse Project or Parklife Festival, amongst cultural events such as the Manchester International Festival.  

Manchester’s thriving business scene also regularly attracts high numbers of visitors.  Trade shows, exhibitions and conferences are commonly held at Event City and other spots in the Manchester area.  

Manchester Economy and Employment 

A major factor behind property investors choosing a property investment in Manchester is the incredible economic growth on offer in the city. 

Acting as a global investor community, Manchester property investment offers incredibly profitable investment opportunities thanks to an expanding economy supported by massive levels of high-skill employment. 

Here are six reasons you should consider a real estate investment in Manchester.  

1. Manchester is Europe’s second-largest cluster of media businesses, the bulk of which is centred around MediaCityUK in Salford Quays – home to the likes of the BBC and ITV. 
2. Centre for Cities found that job creation in Manchester outpaced the likes of Berlin, Tokyo, and Paris between 2015 and 2020. 
3. Greater Manchester is the largest city region economy outside of London, with a GVA of £62.8bn. 
4. Alongside Liverpool, Manchester was voted in the top 10 global locations for business start-ups. 
5. There are over 1.3 million people employed in Greater Manchester, with major industries in manufacturing, life sciences, energy, digital, and finance. 
6. Businesses like the BBC have moved to Manchester from London due to the lower running expenses, with Invest in Manchester estimating that Manchester operating costs are 40% lower than London. 

All these factors mean that the Manchester buy to let market has one of the most exciting futures. As the economy continues to grow, average property prices will rise along with tenant demand, making Manchester’s property market an unrivalled opportunity in 2023.

Best Buy to Let Areas to Invest in Manchester 

The Greater Manchester region is the perfect place to build a diversified property portfolio, with several top buy to let areas worthy of a real estate investment purchase. 

Whether you’re looking for residential or student buy to let properties, the following areas are delivering a top property investment prospect this year. 

These include: 

1. Manchester City Centre 
2. Salford and Salford Quays 
3. Old Trafford 
4. Fallowfield 
5. Castlefield 
6. Ancoats 
7. Northern Quarter 
8. Piccadilly 
9. Wigan 
10. Greengate 

All these areas offer huge buy to let investment potential, with massive regeneration potential and significant rental yields on offer. 

To learn more about all these areas in detail, plus a breakdown of the best buy to let postcodes in Manchester, check out our guide to the best buy to let areas in Manchester. 

RWinvest: One of the Best Property Investment Companies in Manchester 

If you’re considering property investments in Manchester, then RWinvest is one of the best property investment companies Manchester has to offer. 

Here’s why: 

• We are a property investment company with over 18 years of experience in residential and student property. 
• We were voted the North West’s Best Property Business in 2020 and were nominated as Business of the Year 2021 in the Echo Regional Business Awards. 
• Our property portfolio is worth over £1bn, with current opportunities offering prices for less than £150,000 and assured rental yields of up to 7%.
• We’ve helped over 75,000 investors and have gained over 1,000 five-star reviews. 

If you want to explore the latest property investment Manchester opportunities and want to do so with the best property investment companies Manchester offers, then RWinvest is the clear choice for you. 

You can organise an online chat with one of our property consultants today to see what Manchester off-plan property for sale we have that meet your budget.