All You Need to Know Before Buying a Buy-to-Let Property in Manchester

Jul 24, 2023

Investing in the buy-to-let market can be a profitable venture if you know the right place to invest. Manchester has emerged as one of the most popular cities for property investors in recent times, and it’s not surprising why. Manchester’s property market is consistently booming, making it an excellent investment opportunity for anyone considering entering the buy-to-let market. In this blog post, we’ll guide you through the things you need to know before buying a buy-to-let property in Manchester.

What is a Buy-to-Let?

A buy-to-let property is purchased with the intention of renting it out to tenants. Once the property has been acquired, landlords then rent the property out to potential tenants, paying back mortgages and generating income.

Why Manchester for your Buy-to-Let investment?

Manchester is undeniably one of the fastest-growing cities in the UK, offering a plethora of opportunities for property investors. Moreover, the city has experienced an influx of businesses, students, and young professionals seeking their place in this vibrant metropolis. Consequently, there is an increasing demand for rental properties, presenting an excellent opportunity for property investors to capitalize on.

One of the key factors that sets Manchester apart is its remarkable economic potential. Over the past decade, the city’s economy has witnessed substantial growth, expanding by 39% from £53.89 billion to £74.85 billion. This impressive growth has not only accelerated job creation but also established Manchester as one of the prime employment hubs in the UK. Source Furthermore, as the UK’s second-largest creative, digital, and tech hub, Manchester continues to attract major global players such as BBC, Google, IBM, and Cisco. Consequently, a flourishing tech industry has emerged, providing an ideal environment for both innovative startups and established companies, thereby fostering a dynamic and thriving business ecosystem. Additionally, the city has witnessed IPOs worth over £1 billion for companies like AO.com, The Hut Group, and Boohoo, further highlighting Manchester’s immense potential for future growth and success.

Manchester: A Thriving City with Strong Investment Potential

In addition to its economic prowess, Manchester is also a highly desirable destination for domestic and international visitors. It is the third most visited city in the UK, attracting tourists from all over the world. This influx of visitors not only contributes to the local economy but also creates a strong demand for rental properties, making it an ideal market for buy-to-let investments.

Moreover, Manchester’s population is on the rise, with an estimated 40,000 people choosing to live in the city center by 2026. This growth, coupled with an additional 65,000 jobs being created, further highlights the city’s potential for investment opportunities. Source

Manchester Rental Market Undersupply

While the demand for rental properties continues to increase, the supply is struggling to keep up. With Manchester’s growing population and the number of people moving into the city, an undersupply of rental properties creates an opportunity for property investors to fill this gap and make a considerable profit.

The lack of rental housing also means that the prices for these properties are rising, making them a lucrative investment option. Rental yields in Manchester are some of the highest in the UK, with average returns of 6-7% per annum. This makes Manchester an attractive market for buy-to-let investors as they can easily make significant profits from their investments.

According to recent reports from reputable sources such as Place Northwest and Alliance Investments, Manchester is facing a shortage of available rental properties. As a result, rents in the city have skyrocketed, with some areas experiencing an astounding 38% increase in the last year alone. The rental growth rate in Manchester is outpacing other cities outside London, including a staggering 22% growth rate recorded in the second half of 2022, according to JLL.

Invest in Manchester’s Rental Market for High Profit Potential

The undersupply of rental properties in Manchester presents an unparalleled opportunity for investors like you. As rental demand continues to surge, this scarcity can lead to higher rental prices and increased profit potential. Comparing rental growth statistics across the UK, Manchester’s growth rate stands head and shoulders above the rest, making it a prime destination for property investment.

But don’t just take our word for it. The Manchester Housing Strategy 2022–2032 estimates that the city is undersupplied by at least 500 new homes per year. This supply-demand imbalance has propelled both prices and rents to rise across the city, creating a vibrant rental market that shows no signs of slowing down.

Imagine the possibilities of owning rental properties in Manchester, a city with a track record of strong tenant demand and long-term property growth. As the #1 BTL (Buy-to-Let) location in 2023, Manchester offers you the perfect combination of potential capital appreciation and steady rental income.

Rightmove Q2 2023 Rental Price Tracker https://hub.rightmove.co.uk/rental-trends-tracker-q2-2023/

Sources:

  • Place Northwest: link
  • Alliance Investments: link
  • Business Manchester: link
  • Select Property: link
  • Timeout: link
  • Manchester Housing Strategy 2022–2032: link
  • CSIPROP: link
  • Rightmove Link

Predictions for Property Prices in Manchester’s Buy-to-Let Market

Are you looking to make a smart investment that promises long-term financial stability? Look no further than the buy-to-let market in Manchester. According to the latest Savills report, the property prices in Manchester are expected to surge by 11.7% by 2027, making it an ideal time to invest in this thriving market.

Let’s break down the numbers. The predicted 11.7% property price hike over the next six years showcases the immense growth potential in the Manchester property market. This upward trend is driven by a combination of regional and economic factors that are contributing to the city’s remarkable growth.

Manchester’s Property Market: A Hub of Opportunities

Manchester’s dominance in the property market can be attributed to its strong presence in significant industries and the availability of a growing workforce. The city has become a hub for tech, media, and healthcare sectors, attracting talent from all over the country. As a result, the demand for quality housing in Manchester is soaring, creating a favorable climate for property investors.

Investing in a Manchester property comes with a multitude of benefits. Firstly, the predicted increase in rental yields provides a unique opportunity for investors to generate a steady stream of income. With a thriving rental market in place, Manchester offers attractive returns on investment, ensuring a reliable source of passive income.

Moreover, Manchester’s property market is set to experience a surge in demand due to upcoming developments in infrastructure. The city’s transportation links are constantly improving, with major projects such as HS2 and Northern Powerhouse Rail enhancing connectivity within and outside the city. These developments will undoubtedly boost the desirability of Manchester as a prime location for both tenants and property investors.

Conclusion

So why wait? Now is the perfect time to act on this knowledge and capitalize on the upcoming property market in Manchester. By investing in a buy-to-let property, you can secure a bright financial future for yourself. With the predicted rise in property prices, you can benefit from capital appreciation, ensuring long-term financial gains.

In conclusion, the Savills report confirms the positive trajectory of the Manchester property market, presenting a golden opportunity for investors. With an expected 11.7% property price surge by 2027, coupled with the city’s flourishing rental market and upcoming infrastructure developments, investing in a Manchester buy-to-let property is a decision that offers both immediate returns and long-term financial stability.

Manchester Skyline

Manchester Skyline

Sources:

Conclusion:

Investing in a buy-to-let property in Manchester can be an excellent way to generate income and build wealth. With the demand for rental properties increasing and the undersupply of properties in the city, it’s the perfect time for property investors to consider Manchester for buy-to-let investments. Additionally, with the market forecast for Manchester looking promising, it is an excellent long-term investment that can potentially reap high rewards. We hope this blog post has provided you with the information you need to make informed investment decisions in Manchester’s buy-to-let market.

Discover a curated range of investment opportunities in Manchester below. For more details on our exclusive off-market options, simply enquire today.

Manchester Property Investment

DISCLAIMER

This guide is intended solely for informational purposes and should not be considered as investment advice. For those in search of financial guidance, it is advisable to consult with a financial advisor authorised by the FCA, to receive regulated advice tailored to your investment choices.

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