Why Is Manchester the Place to Invest?

Amy Jackson
Amy Jackson
Property Editor
Updated 26 October, 2021
6 Min Read

Why Is Manchester the Place to Invest? Why Is Manchester the Place to Invest?

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. With so many exciting up-and-coming areas in Manchester, more people are starting to explore the real estate market and consider 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 new ‘second city’. 

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Read About the Five Main Reasons to Invest in Manchester Below: 

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. 

Affordable yet growing property prices and high housing market demand have all put the North West’s top city in the spotlight compared to other cities for UK property investments.  

Manchester is your go-to city when it comes to buy to let investments within a top UK housing market.

Affordable Properties 

When compared to other UK areas, particularly London, Manchester property prices are highly affordable. 

While not as affordable as their Northern neighbour, Liverpool, which has an average property price of £164,550, Manchester has average house prices of just £203,835, according to the latest Land Registry House Price Index report. 

London’s average is more than double this figure, standing at £525,893. 

Investors who want to own a lucrative property without spending above their budget will often invest in Manchester due to the affordable prices and fantastic opportunities on offer. 

Growing House Prices Growing House Prices

Growing House Prices 

One of the most significant pieces of Manchester investment news lies with property price growth.  

From January 2020 to January 2021, capital appreciation in Manchester had grown by 12.12% – almost double the national average of 7.49% and 12 times higher than London, according to the UK House Price Index.  

Manchester property market forecast predictions show that further growth of 28% is predicted for the North West by 2025, making now the perfect time to get started with a new Manchester investment. 

Property Market Resilience 

The UK has faced a lot of uncertainty over recent years, but the Manchester economy and market remain as resilient as ever.  

While cities in the South like London continue to struggle following the EU referendum result back in 2016, Manchester’s property market has overcome these difficult times. 

Even during the Covid-19 pandemic, when many predicted house prices in the UK to plummet, Manchester’s property market has continued to thrive. 

Since March 2020, when the pandemic began, Manchester house prices have increased by over 12%.  

A lot of factors led to these growing property prices. Of course, the stamp duty tax holiday played a big part in this growth, with a lot of people opting to invest in Manchester during this time to benefit from tax savings.  

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A Thriving Rental Market A Thriving Rental Market

Reason 2 – A Thriving Rental Market 

Like the property market in Manchester, Manchester’s rental market is a huge reason why so many people choose to invest in Manchester property in 2021.  

Rental demand is at record-breaking levels right now across the UK, and even higher demand can be felt in this North West buy to let hotspot. 

This has caused some of the most attractive rental yields in the country to be found in Manchester. 

High Rental Yields 

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 regarding property investment in Manchester is rental yields. Researching these is a massive 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 essential to know where to invest in Manchester for the best yields.  

Several 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 over 8%. 

Both rental costs and property prices are rising across the Manchester property market. The average property price is 12.12% higher in 2021 than a year prior, while rents rose by 6.8% in the same period.

Rental Market Demand Rental Market Demand

Rental Market Demand 

Manchester is considered one of the best places to live in the UK, which has led to increased rental market demand. 

In a recent report from Urban Bubble, it was revealed that only 427 apartments were available for rent in Manchester, which is the lowest number ever on record. 

A total of 9,200 homes have reportedly been built in the city since the beginning of 2020, and most of these are now fully tenanted.  

In Q3 of 2021, around 10.3% more lettings occurred in Manchester than in Q3 of 2019. 

With such a need for high-quality rental accommodation in the city, buy to let Manchester investment presents an even more attractive option than ever before.  

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Reason 3 – A Bustling Business Hub 

Manchester boasts a famously high level of demand for rental properties, partly down to the huge business scene within the city.  

There are business opportunities in every sector, in 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 over £4 billion annually.  

Manchester’s employment growth has increased by 84% 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 

MediaCityUK, located in Salford, is home to a whole host of major companies, making 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 Merchant’s Wharf apartments near MediaCityUK, which boast 6.5% rental returns. 

A Hub For Fast Fashion A Hub For Fast Fashion

A Hub For Fast Fashion 

Some of the biggest names in the fast fashion industry reside in Manchester.  

Businesses like Boohoo, Misguided, Pretty Little Thing and Misspap are all based in Manchester. This has led to the city developing a reputation as a hotspot for fashion industry professionals. 

Young professionals and graduates who want to land careers such as fashion designers or buyers no longer need to head to London for their dream role, with many options available in this Northern city. 

This has attracted a broad demographic of young professionals to the city and increased rental demand even further.  

The North West is Currently the Best Place to Invest.  

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Reason 4 – 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 significant element that can help you maximise your returns. 

Regeneration

Regeneration plays a big part in both the UK economy and the appeal of the buy to let investment Manchester offers.  

Thanks to regeneration, there are many up-and-coming areas in Manchester in 2019, 2020, and 2021 that have come a long way.  

A prime example of this is with MediaCityUK, 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 to 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 a new St Johns neighbourhood that will introduce new jobs, housing, and attractions to the city centre. 

Greengate Manchester is another vital part of the city that’s experiencing a lot of regeneration.  

Named Manchester’s answer to Brooklyn, Greengate is one of Manchester’s most desirable investment areas right now, thanks to its perfect location and the regeneration in store. 

Those who want to invest in Manchester for the enhanced capital growth yet to come should consider Greengate investments.  

Likewise, areas like Wigan property investment, are quickly becoming top regeneration areas in the Greater Manchester area. You can read a full-guide to why invest in Wigan by following the link. You can also check out the latest Wigan investment property for sale from RWinvest.

High Connectivity High Connectivity

High Connectivity 

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, so strong transport links are vital. 

Plans have been put in place to further improve the city’s transport services and help maintain Manchester’s vital status as a key Northern Powerhouse city. 

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 daily, increasing tourism. 

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. 

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A Thriving Student Scene A Thriving Student Scene

Reason 5 – A Thriving Student Scene 

Along with the herds of young professionals that regularly flock to Manchester seeking residential properties, the city is also a significant student hotspot.  

Manchester is home to several prominent universities, such as the University of Manchester, the UK’s largest single-site university campus. 

The constant demand for new student developments and living spaces in the UK’s student market 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 should you consider a student property investment 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 than 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 exceptionally high in more high-end student apartments. This is because 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.  

The best places to invest in Manchester student accommodation include Manchester city centre, Salford Quays, Fairfield, and Didsbury. 

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Why Invest in Manchester Property With RWinvest? 

If you want to invest in Manchester, we can help you.  

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 property in 2021 and beyond. 

Visit our Manchester page to browse our latest investment opportunities in Manchester, such as Embankment Exchange and Merchant’s Wharf 

You can also stay up to date with Manchester investment news on our website. 

Alternatively, you can contact us for some Manchester property investment advice from our property professionals. Just click the link below to start a chat with one of our agents! 

Chat to an agent at RWinvest. 

Amy Jackson
Amy Jackson
Property Editor

Amy Jackson is the property editor at RWinvest. Amy has over three years of experience working in the property content sector and has a keen eye for finding the latest news, statistics, and must-have property investment information.

Invest From £38,950

Embankment Exchange

80% Units Sold

Manchester Prices from £179,950

6% Projected Rental Returns

Up to 34% Below Local Comparable

Invest From £60,000

Merchant's Wharf

Luxury Waterfront Apartments

Manchester Prices from £249,950

Up to 6.5% Projected Rental Return

55% Below Market Value