When it comes to buy-to-let property investment, Manchester is undoubtedly one of the UK’s most popular and best-known locations.
To explain why we have produced a downloadable guide that considers factors including:
As a property investment destination, Manchester is an excellent all-rounder, strong on all the key measures that landlords typically value.
For all these reasons and more, Manchester is attracting vast sums of inward investment, from the UK public and private sectors and, significantly, from overseas.
To maintain the momentum, local planners have given the green light to major new infrastructure improvements, commercial developments and new enterprise zones, together with a substantial expansion to Manchester Airport’s Terminal 2.
Inward investment is driving new construction, business growth and job creation. Well-known employers such as Amazon and Jaguar Land Rover have invested in the city recently, creating new jobs and encouraging many more in their supply chains.
Construction activity in Manchester has been progressing at ten times the UK average rate and it is giving rise to some impressive new projects. Examples include:
The consequences of all this urban regeneration should include more jobs, improved living conditions and, in all likelihood, steadily rising property values.
It should come as no surprise that in an environment such as this, Manchester’s business population is thriving. Since 2014, the number of business operating in Manchester has risen from 15,000 to over 22,000, and this has helped make the city one of Europe’s top 15 for job creation.
The sectors currently showing the fastest growth include:
Tourism in Manchester is worth approximately £4.5 billion every year, and it has been growing at a rate of roughly 10% per annum.
In 2019, Manchester welcomed 4.8 million staying guests and 59 million day-visitors, but the city now seeks to improve upon this in 2020 and beyond. Its targets include:
Manchester is undeniably one of Britain’s most popular tourist destinations and rising visitor numbers augur well for landlords with an interest in profitable rental options, such as short-stay accommodation and serviced apartments.
On the strength of all these credentials, many people regard property investment in Manchester as a logical and low-risk choice. This is borne out by recent housing market figures.
In Hometrack’s UK Cities House Price Index, Manchester ranked second overall for price growth, surpassed only by Edinburgh, which achieved annual gains of 5.4%.
According to some reports, the city-wide average for yield is circa 6%, but investors should look out for off-plan developments where rental assurances of 8% and more may be available.
Manchester’s university student population – some 100,000 strong – is one of the biggest in Europe, so its importance to landlords shouldn’t be underestimated.
Universities:
Taking a mix of traditional student rentals and purpose-built student accommodation, yields in Manchester typically vary between 6.5% and 8%.
Many large employers, developers and international investors are committing billions to new premises and developments. With business numbers and employment rising steadily, all the signs suggest that Manchester will remain a property investment hotspot for many years to come.
Industry predictions:
In short, Manchester is an excellent all-rounder, highly regarded by professional and institutional investors, and it remains one of the most obvious choices for buy-to-let property investment in 2020.
Additional reading:
For more information, please download our guide to Property Investments in Manchester:
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We have recently completed a purchase of a BTL through Residential Estates. I found their team (Chris and Danielle) to be easily accessible, and willing to answer queries in detail. They pay great attention to details and not one of my questions left unanswered. They are also very responsive, and will get back to you when they say they do. Having received plenty of unsatisfactory communication from different agents over the year, I’ve a great appreciation for their hard work... to other prospective investors I would say Residential Estates is a viable option for property deals. Both Chris and Danielle are knowledgeable, helpful and professional. Absolutely no hard sell and we are encouraged to do our own search, and moving in our own pace. They seem to have a good network/relationships with their vendors, solicitors, and letting companies, which makes their offering is far better than others. We would gladly use their services again for the next purchase.
Haven't used Residential Estates to purchase a Buy-to-Let, SA or SBSA yet but they are very helpful in all my questions and their webinars have been invaluable. Because of the RE webinars I have been able to claim back £2,500 from overpaid Stamp Duty on a previously purchased Student B2L! Will continue to watch the webinars and hopefully purchase a property or two within the next few years.
