For both domestic and international real estate buffs, property investment in Manchester is the latest buzzword. Once leading behind popularity trails and beaten by London, the city centre and outskirt boroughs are the newest rising star, set to overtake the capital as the UK’s leading destination for business, the economy and education. Whether you want capital growth, a buy-to-let investment or to tap into a market with high liquidity, the city ticks all the boxes. Let us look at why, and what buyers can expect from the future.
The robust prediction of 20% growth over the next three years easily attracts international and domestic investors. What’s even better is that historical records show it outranks the rest of the UK for capital appreciation. So what is working in its favour? Increasingly more people are moving up from the south and creating a strong demand, especially for working professionals looking at renting or getting their foot on the housing ladder.
The strong demand affects the investments market, more than in other major cities like Birmingham, Nottingham and even London. It is easy to understand the trend, because house prices in London prove too expensive for many workers and families. People get more for their money in Manchester. This trend started three years ago but shows no sign of letting up. Many people, but more so young professionals, can no longer afford London prices and now turn to Manchester's rental market as the best next destination.
To answer this question, we need only look at the high number of overseas investors who are snapping up a buy-to-let property in Manchester. They are attracted by a steady growth pattern and predictions, competitive demand, and rental yields. Given Manchester also has a vibrant shopping, tourism food, art, culture, and nightlife scene, it provides investors with everything they need to market their property. Simple Business says the average cost of rent for a one-bedroom city centre flat is £758 or £541 in the greater Manchester outskirt districts. Meanwhile, a three-bedroom city centre flat is £1,368 or £890,74 outside of it.
So, what is Manchester doing that is turning it into the UK’s property investments hotspot? Simple, they are investing millions back into the economy, transport, and infrastructure. Over the last six years, they have pumped over 300 million into helping businesses grow, creating job opportunities and further education skills for workers. They also belong to the Northern Power House program. Their mission statement is….
“Building a Northern Powerhouse is about boosting the local economy by investing in skills, innovation, transport and culture, and devolving significant powers and budgets to elected mayors to ensure the North decides in the North. We are backing business growth right across the North, and giving our magnificent cities the power and resources, they need to reach their huge untapped potential.”
Altogether Manchester breaks down into ten official districts, each of which is governed separately, so it is worth checking out each council’s plan of action for the future to make sure you are investing in an area that matches your expectations. Hot spots areas for the property market, residential developments and buy-to-let potential include Trafford, Stockport, Bury, Rochdale, Bolton, Tameside, and Oldham.
However, Manchester city centre remains the prime investment spot. Besides that, Salford shows much potential, for affordable prices and its enormous student base, that is ideal for property owners. Trafford is also worth looking at, considering the prime amount of jobs generated through establishments like Trafford Park and MediaCityUK.
1: It’s the New Go-to Destination: People are ditching London, because of high property prices, in favour of Manchester. The growing population of students and young working professionals is making it the UK’s go-to destination for investment property.
2: The Economy: Local councils aren’t content to rest on their current success. They are pushing ahead to make the economy, the UK’s best performing and reinvesting in local business and attracting international firms.
3: Transport Network: As well as an economic investment, millions are being ploughed into the transport links and the network. The HS2 railway system going to places like Birmingham, and London will cut travelling times by half and be more environmentally friendly. Manchester will connect to other UK destinations, in a way never seen before.
4: An Urban Lifestyle: Some cities excel at certain lifestyle aspects and neglect others, but the city is an all-rounder. Whether it is shopping, food, student accommodation, tourism, education, business, art, culture, or fashion that grabs your attention, Manchester provides the ideal urban lifestyle.
Further Information: Browse our portfolio of property for sale in Manchester. Each listing includes photographs, location details, price, and home features. Use the contact details or enquiry form to find out more about property investment in Manchester, receive a UK investment guide or to arrange a viewing.
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