Student Property Investment Manchester: 5 Reasons to Invest in 2021/2022

Student Property Investment Manchester
Daniel Williams
Daniel Williams
Senior Property Writer
12 Min Read

Student Property Investment Manchester Student Property Investment Manchester

As an investment, student investment property in Manchester is proving to be one of the most lucrative ventures in 2021. 

After a record-breaking year for property investment, and returns higher than ever, student property investment in Manchester is now at the forefront of investors’ minds. 

In this guide, you will find out exactly why. 

Here you will learn five reasons you should consider investing in student investment property in Manchester in 2021 and 2022. 

Other topics you will find include: 

  • Where to buy student investment property in Manchester? 
  • How to invest in student property Manchester 

Read on to learn more… 

This is one of our seven guides to student property investment in the UK. Click the link to see our student hub page and get access to our other free in-depth guides. 

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Why Invest in Student Property in Manchester Why Invest in Student Property in Manchester

Why Invest in Student Property Manchester? (5 Reasons) 

For any property investor, Manchester has proved to be an exceptional choice for the last two decades. 

But while the residential buy to let Manchester market has exploded (read our Manchester property investment guide to learn more), the same can be said for its student market. 

With one of the largest student populations in all of Europe, world-class universities, and affordable housing, student investment property in Manchester sits on top as the favoured investment destination for investors. 

It’s no surprise then that Manchester is regularly considered one of the best places to invest in student property.

There are currently five central reasons why people are choosing to invest in student property in Manchester. 

They are: 

  1. Manchester Property is Affordable With Huge Returns Available 
  2. A Massive International Student Population 
  3. Three World-Class Universities  
  4. Fantastic Employment Opportunities  
  5. Excellent Nightlife and Affordable Lifestyle 

Let’s discuss each in detail below. 

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1. Manchester Property is Affordable With Huge Returns Available 

As a property investment location, Manchester is in a league of its own. 

Offering some of the most affordable property prices and highest return potential out of every major UK city, student property investment in Manchester offers a compelling solution for investors. 

According to the latest Land Registry data, the average Manchester property is valued at just £207,625. 

This is just under £50k below the UK average, and is more affordable than the likes of Leeds, London, Edinburgh, and Brighton. 

Average Property Prices Average Property Prices

 

Crucially for investors, these low property prices lead well to huge return potential. 

Using the latest Zoopla rental data, the average gross rental yield in Manchester (without factoring in expenses) is a huge 6.61%. 

For comparison, the UK average is 4.94%. 

On top of these rental returns, Manchester sits alone for capital growth. 

In the last 12 months, Manchester property has increased in value by a staggering 13.65%. 

Looking back further still, Manchester prices have increased by 331.94% over the last two decades, according to official Land Registry data – the largest capital growth out of every major UK city. 

These returns are incredibly exciting for investors, especially when you factor in future growth. 

According to the latest Savills house price predictions, the North West region of England is set to see property prices rise by 28.0% by 2025 – the joint-highest growth rate in the UK. 

Factoring this growth with the potential to find student investment property in Manchester for below the £100k mark, while also enjoying NET rental yields commonly found upwards of 7%, the city is undoubtedly a smart choice for investors. 

If you’re wondering why student property investment in Manchester is popular, these sky-high returns are why. 

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Massive International Student Population in Manchester Massive International Student Population in Manchester

2. A Massive International Student Population 

Naturally, investors interested in student property will need to keep a close eye on the student population of a city. 

After all, the higher the student population, the more demand for student property in the region. 

Luckily for investors, Manchester’s student population is one of the largest in all of Europe. 

With over 100,000 students in the Manchester region, student investment property in Manchester regularly proves hugely popular. 

A report from Zoopla in 2020 found that demand for property in Manchester outweighs supply by 5:1. 

This is also seen in the student market, with a Savills report finding that in the UK, full-time students outweigh available beds by 3:1. 

These numbers are incredibly beneficial for student property investors in Manchester, as it almost ensures that demand will be huge for a purchased student investment property in Manchester. 

What’s truly significant about these high numbers is that there is a huge number of international students. 

In late 2020, over 7,000 Chinese students flew into Manchester to study, while the overall reported number of international students in Manchester universities is around 20,000. 

The fact a large number of students in Manchester are Chinese is important, as studies show Chinese students are far more likely to rent purpose-built student accommodation – 2.2 times more likely according to Savills. 

This international reputation as a student city has been carefully cultivated by Manchester. 

The city is the third most visited city by international tourists in the UK, and is one of the most linguistically diverse locations in all of Europe with over 200 languages spoken, according to Study in Manchester. 

Factoring in this huge population and their preference of PBSA, which is the most popular and highest returning type of student property in 2021, student investment property in Manchester is a clear choice for prospective investors. 

The University of Manchester The University of Manchester

3. Three World-Class Universities 

The central reason behind Manchester’s huge international and domestic reputation as a world-class student city is thanks to its three top-quality universities. 

With The University of Manchester, Manchester Metropolitan University, and The University of Salford to choose from, along with 20 universities within one hours drive, Manchester students are spoiled for choice. 

Perhaps the most noteworthy is the University of Manchester, which is likely the biggest pull for students. 

Here, the University of Manchester was voted in the top 30 universities in the world in 2021 – its highest-ever position! 

The quality of Manchester universities is exceptional, with studies finding that 94% of graduates from the University of Manchester and Manchester Metropolitan University go into employment or further education within just six months. 

However, while the University of Manchester gets the headlines, Manchester’s other universities are quickly becoming some of the most popular in the UK. 

Manchester Metropolitan is hugely popular for vocational courses like business and art and hosts the highest number of undergraduate applications in the UK.  

Likewise, The University of Salford is becoming a fantastic option for investors, with strong links to the nearby £1bn MediaCityUK to give students world-class employment opportunities. 

Overall, student property investment in Manchester is heavily boosted by Manchester’s undeniably exceptional education sector. 

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Manchester Employment Opportunities Manchester Employment Opportunities

4. Fantastic Employment Opportunities 

Manchester has the second largest graduate retention rate in the UK, with averages of over 50%. 

Back in 2016, the city reported a graduate retention rate of 70%, meaning a staggering 70% of students stayed in the city after graduating. 

This is significant for investors, as it gives them further investment opportunities to buy a residential property in the future. 

But why are so many students and graduates choosing to stay in Manchester? 

Well, likely the biggest contributor to this is the fantastic employment opportunities in Manchester.  

In July 2020, Manchester, alongside Liverpool, was voted in the top 10 global locations for business start-ups. 

A bulk of these employment opportunities are focused on both Spinningfields and MediaCityUK. 

Noted as Manchester’s answer to Canary Wharf, Spinningfields is a booming business region in the heart of Manchester city centre. 

Around 150 world-class financial and commercial businesses call Spinningfield home, making it a huge employer of young professionals. 

While Spinningfields boosts employment in central Manchester, MediaCityUK generates huge attraction in Salford. 

MediaCityUK, which has cost over £1bn, is home to the UK’s biggest media companies like the BBC and ITV, and has attracted mega businesses such as these from London to Manchester. 

And, with billions being spent on regeneration to boost employment in the region, such as NOMA, the future of Manchester is bright, and is likely to increase the viability of student investment property in Manchester for years to come. 

Excellent Nightlife in Manchester Excellent Nightlife in Manchester

5. Excellent Nightlife and Affordable Lifestyle

The final major factor behind the huge success potential of student property in Manchester is the appeal of Manchester as a place to live. 

When it comes to lifestyle, students are looking for exciting nightlife, things to see and do, and all most importantly at an affordable level. 

Excitingly, Manchester supplies all these factors and more. 

With a thriving musical scene that produced the likes of Oasis, The Stone Roses, and The Smiths, there are tonnes of fantastic musical venues dotted across the city. 

For the more cultural and art-loving students, Manchester also boasts several excellent museums and galleries including the National Football Museum and The Whitworth Art Gallery – with the majority of venues offering free entry. 

On the topic of affordability, Manchester is one of the most cost-friendly places for students. 

The annual Manchester Student Night Out delivers unique student deals at over 100 shops, with the city famed for its shopping scene with the likes of the famed Trafford Centre.  

This affordability is even better for international students, who can shop at many locations tax-free!  

Access to all these great places, including the immensely popular student hotspot The Northern Quarter, has never been easier thanks to excellent transport links. 

Whether students are travelling to university, a shop, or to a part-time job, Manchester ensures transport links are widely available with frequent buses and an excellent city-wide tram system. 

It’s no surprise that Manchester was voted the best UK city to live in according to the Global Liveability Survey. 

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Liverpool Prices from £74,950

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Invest From £30,000

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Completed Student Accommodation

Liverpool Prices from £69,995

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The Bridewell

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Liverpool Prices from £68,995

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Where to Buy Student Investment Property in Manchester?

Now that we’ve covered five reasons you may want to invest in student property in Manchester, it’s time to look at exactly where to buy student investment property in Manchester. 

Below you will find the top 6 best student areas, so you know where to buy student investment property in Manchester in 2021 and 2022. 

1. Manchester City Centre 

Avg. House Price: £275,837 

Avg. Gross Rental Yield: 6.61% 

If you want to know where to buy student investment property, the city’s biggest student area in Manchester is its city centre. 

With the bulk of the city’s fantastic restaurants, nightlife opportunities, transport links, jobs, and university campuses found in the city centre, it’s an obvious choice for investors targeting student accommodation. 

Students can often be found in areas like Oxford Road and the Northern Quarter. 

Oxford Road is the beating heart of Manchester city centre, and is home to the University of Manchester’s main campus, while also boasting music venues, restaurants, shops, and a train station. 

On the other hand, the Northern Quarter is a trendy neighbourhood found in the North of the city centre, and is filled with nightlife opportunities, restaurants, and bars, making it a huge hit amongst students. 

With access to all of these facilities, student accommodation is generally more expensive in the region, but this means even higher returns are on offer for investors. 

2. Salford 

Avg. House Price: £207,018 

Avg. Gross Rental Yield: 6.64% 

Perfect for those looking for a more affordable solution for student property investment in Manchester, Salford has increasingly grown in popularity amongst students. 

Located minutes from Manchester city centre, Salford is an incredibly exciting business hub with the likes of MediaCityUK a major employer in the area. 

In fact, in Q1 2017 alone, the city saw almost 1,400 new companies launch in the area. 

The area is home to The University of Salford, which features over 21,000 students, with purpose-built student accommodation investment a major choice for nearby investors. 

However, the best part about Salford investment is that you can also target Manchester students, with the area just minutes from other major universities in the city.

Thanks to the city-wide metro system, as well as fantastic bus routes and train links, travelling around the city is incredibly easy. 

3. Fallowfield 

Avg. House Price: £198,362 

Avg. Rental Yield: 7.37% 

Arguably the best student investment property hotspot in Manchester, Fallowfield is home to over eight halls of residence and thousands of students. 

The huge student market is seen clearly in the area’s average rental yield, which is a colossal 7.37% – a testament to the high student rent in the region. 

Fallowfield is located to the south of Manchester and is around a 30-minute walk from the city centre. 

Excitingly for those considering student property investment in Manchester, Fallowfield is perfect for students at the University of Manchester and Manchester Metropolitan, with campuses for both universities nearby. 

The area is a major draw for students looking for the typical, fun-filled life you can expect from Manchester, with tonnes of food opportunities and a strong nightlife scene. 

If you’re asking where to buy student investment property in Manchester, Fallowfield is one of the best choices for you. 

4. Hulme 

Avg. House Price: £170,341 

Avg. Rental Yield: 7.00% 

One of the greatest regeneration success stories in Manchester, the area of Hulme has been completely transformed over the last two decades to create one of the biggest student hubs in the city. 

Located less than a 20-minute walk from the city centre, Hulme is filled with brand-new developments and student property, making it an attractive choice for students looking for high-quality accommodation. 

The area is ideal for students looking to focus on their studies and avoid the prolific nightlife scene, with Hulme filled with attractive cafes and quiet pubs. 

5. Rusholme 

Avg. House Price: £164,446 

Avg. Rental Yield: 6.37% 

Home of the famous ‘Curry Mile’, a prolific stretch of Indian restaurants, Rushholme is another example of the best student investment property locations in Manchester. 

The area is nestled ideally between Manchester city centre and Fallowfield, and offers the lowest average property price on this list of under £165k. 

Thanks to the low prices, average rental yields are also excellent at 6.37%. 

While the student population is lower than Fallowfield, Rusholme offers a compelling solution for students with its convenient proximity to the city centre and Oxford Road. 

Crucially, the region is also found near Levenshulme train station, making travelling in and out of the city incredibly convenient, bumping the appeal of this excellent student hotspot. 

6. Didsbury 

Avg. House Price: £389,103 

Avg. Rental Yield: 3.53% 

Looking at the average house price, you would be forgiven to think this area isn’t appealing to student property investors in Manchester. 

However, Didsbury is home to the most affluent student accommodation, allowing investors to see huge returns on their student investment property.  

Generally appealing to wealthier students who want a quieter student experience, Didsbury is home to fantastic restaurants, premium shopping experiences, and stunning parks. 

If you’re looking at where to buy student investment property in Manchester, but don’t want to spend a lot of money, this area is likely not the best option for you. 

1. Manchester City Centre

1. Manchester City Centre 

Avg. House Price: £275,837 

Avg. Gross Rental Yield: 6.61% 

If you want to know where to buy student investment property, the city’s biggest student area in Manchester is its city centre. 

With the bulk of the city’s fantastic restaurants, nightlife opportunities, transport links, jobs, and university campuses found in the city centre, it’s an obvious choice for investors targeting student accommodation. 

Students can often be found in areas like Oxford Road and the Northern Quarter. 

Oxford Road is the beating heart of Manchester city centre, and is home to the University of Manchester’s main campus, while also boasting music venues, restaurants, shops, and a train station. 

On the other hand, the Northern Quarter is a trendy neighbourhood found in the North of the city centre, and is filled with nightlife opportunities, restaurants, and bars, making it a huge hit amongst students. 

With access to all of these facilities, student accommodation is generally more expensive in the region, but this means even higher returns are on offer for investors. 

2. Salford

2. Salford 

Avg. House Price: £207,018 

Avg. Gross Rental Yield: 6.64% 

Perfect for those looking for a more affordable solution for student property investment in Manchester, Salford has increasingly grown in popularity amongst students. 

Located minutes from Manchester city centre, Salford is an incredibly exciting business hub with the likes of MediaCityUK a major employer in the area. 

In fact, in Q1 2017 alone, the city saw almost 1,400 new companies launch in the area. 

The area is home to The University of Salford, which features over 21,000 students, with purpose-built student accommodation investment a major choice for nearby investors. 

However, the best part about Salford investment is that you can also target Manchester students, with the area just minutes from other major universities in the city.

Thanks to the city-wide metro system, as well as fantastic bus routes and train links, travelling around the city is incredibly easy. 

3. Fallowfield

3. Fallowfield 

Avg. House Price: £198,362 

Avg. Rental Yield: 7.37% 

Arguably the best student investment property hotspot in Manchester, Fallowfield is home to over eight halls of residence and thousands of students. 

The huge student market is seen clearly in the area’s average rental yield, which is a colossal 7.37% – a testament to the high student rent in the region. 

Fallowfield is located to the south of Manchester and is around a 30-minute walk from the city centre. 

Excitingly for those considering student property investment in Manchester, Fallowfield is perfect for students at the University of Manchester and Manchester Metropolitan, with campuses for both universities nearby. 

The area is a major draw for students looking for the typical, fun-filled life you can expect from Manchester, with tonnes of food opportunities and a strong nightlife scene. 

If you’re asking where to buy student investment property in Manchester, Fallowfield is one of the best choices for you. 

4. Hulme

4. Hulme 

Avg. House Price: £170,341 

Avg. Rental Yield: 7.00% 

One of the greatest regeneration success stories in Manchester, the area of Hulme has been completely transformed over the last two decades to create one of the biggest student hubs in the city. 

Located less than a 20-minute walk from the city centre, Hulme is filled with brand-new developments and student property, making it an attractive choice for students looking for high-quality accommodation. 

The area is ideal for students looking to focus on their studies and avoid the prolific nightlife scene, with Hulme filled with attractive cafes and quiet pubs. 

5. Rusholme

5. Rusholme 

Avg. House Price: £164,446 

Avg. Rental Yield: 6.37% 

Home of the famous ‘Curry Mile’, a prolific stretch of Indian restaurants, Rushholme is another example of the best student investment property locations in Manchester. 

The area is nestled ideally between Manchester city centre and Fallowfield, and offers the lowest average property price on this list of under £165k. 

Thanks to the low prices, average rental yields are also excellent at 6.37%. 

While the student population is lower than Fallowfield, Rusholme offers a compelling solution for students with its convenient proximity to the city centre and Oxford Road. 

Crucially, the region is also found near Levenshulme train station, making travelling in and out of the city incredibly convenient, bumping the appeal of this excellent student hotspot. 

6. Didsbury

6. Didsbury 

Avg. House Price: £389,103 

Avg. Rental Yield: 3.53% 

Looking at the average house price, you would be forgiven to think this area isn’t appealing to student property investors in Manchester. 

However, Didsbury is home to the most affluent student accommodation, allowing investors to see huge returns on their student investment property.  

Generally appealing to wealthier students who want a quieter student experience, Didsbury is home to fantastic restaurants, premium shopping experiences, and stunning parks. 

If you’re looking at where to buy student investment property in Manchester, but don’t want to spend a lot of money, this area is likely not the best option for you. 

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How to Invest in Manchester Student Property How to Invest in Manchester Student Property

How to Invest in Manchester Student Investment Property 

Currently, there are two popular ways to invest in student property. 

  1. You can invest in a house of multiple occupation. Or… 
  2. You can buy purpose-built student accommodation 

While we won’t go into massive detail here – you can learn more about how to invest in student property in our guide – the bottom line is that PBSA is likely the best option you can make right now. 

A culture change amongst students has meant that more students are looking for premium, high-quality living spaces – something that HMOs, which are typically older properties, cannot provide. 

In the last year alone, a report from Savills found that over £5.77bn was spent on PBSA – the highest ever figure by 0.8%. 

With all current market data pointing to PBSA being the preferred choice for student property investment in Manchester, it’s likely your best bet for netting the highest profits. 

If you’re serious about investing in student accommodation in Manchester or Liverpool, RWinvest is the perfect company for you. 

Invest From £35,000

ELEMENT - The Quarter

North West's First Eco-Development

Liverpool Prices from £74,950

8% NET Rental Return

300m Away From New £1bn Royal Hospital

Invest From £30,000

Shaw Street

Completed Student Accommodation

Liverpool Prices from £69,995

8% NET Rental Returns

Completed Student Accommodation

Completed & 100% Tenanted

The Bridewell

Historic Victorian Building

Liverpool Prices from £68,995

8% Assured NET Rental Return

100% Tenanted

Who Is RWinvest? 

RWinvest is an award-winning property investment company specialising in residential and student investment property in Manchester and Liverpool. 

With over 17 years of experience and 1,000 five-star reviews, we are one of the best-known and most trustworthy companies in the property world. 

We were crowned the North West’s best property company last year, and have since been nominated as Business of the Year in the prestigious Echo Regional Business Awards. 

RWinvest offers exclusive student accommodation investments and deals you won’t find anywhere else. 

If you want to see what PBSA we have available, contact us today for more information.  

Alternatively, check out our other student property investment guides. 

You can learn: 

And much more! 

Just click the links to be taken to our free guides to student property investment. 

Daniel Williams
Daniel Williams
Senior Property Writer

Daniel Williams is a senior property writer at RWinvest. Regularly publishing in-depth articles on topics such as the best investment areas in the UK and guides on how to invest, Daniel has a keen eye for statistics and analysing property market changes.