Manchester: A Lucrative Opportunity for Buy-to-Let Investors

Oct 5, 2023

Welcome, UK investors, to one of the UK’s key cities burgeoning with potential: Manchester, a hotspot for property investment offering lucrative opportunities. This blog post is your guide to investing in Manchester property, specifically focusing on the growing sector of buy-to-let.

Manchester has emerged as an incredibly profitable landscape for buy-to-let investors, boasting impressive rental yields and promising capital appreciation.

Read on to discover why Manchester property investment should be a pivotal part of your portfolio and how you can leverage the potential of the thriving buy-to-let Manchester market.

Manchester City Centre: The City of Dreams…and Profits!

If you’re an investor seeking healthy returns, it’s worth exploring the prosperous property market in Manchester, one of the UK’s leading cities. With its robust economy, growing population, and ongoing urban regeneration led by Manchester City Council, Manchester city centre presents solid fundamentals for long-term growth in property prices.

The north-west region of Manchester, including areas such as Salford and Trafford, presents excellent investment property opportunities with promising indicators that point to continued prosperity. The area benefits from key infrastructure developments, including major transport links and the expansion of Media City UK, attracting businesses and talent to the region.

Manchester’s renaissance has transformed formerly post-industrial areas into vibrant and livable neighborhoods, enhancing property values and attracting investors seeking stability and value. Areas like Ancoats, Castlefield, and the Northern Quarter showcase a mix of restored heritage buildings and contemporary architecture, offering a unique blend of history and modernity.

Consider Greater Manchester as a city of the future, offering attractive returns in the dynamic property market of the north-west. With its thriving cultural scene, world-class universities, and a diverse range of industries, Manchester continues to draw interest from investors looking for long-term growth opportunities.

The Manchester property market offers a strong and attractive landscape for investment. Here are some key reasons why property investment in Manchester should be on your radar:

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Solid Rental Yields

With a thriving rental market, Greater Manchester is well-known for its high buy-to-let yields, currently around 6–7%. This means that investors can expect a steady stream of income from their rental properties. In addition, over the past decade, property prices in Greater Manchester have experienced significant growth, with an increase of approximately 75%. This indicates a solid potential for capital growth, making it an attractive option for property investors looking to maximize their returns in the long term.

Vibrant Economy and Job Market

Greater Manchester, is a bustling and vibrant economic hub that boasts a wide range of thriving sectors. From the world-renowned financial services industry to cutting-edge science and technology, the dynamic creative and digital industries, the city offers a diverse and exciting business landscape. With a strong focus on job growth and a continuous influx of economic investment, Manchester promises a bright and prosperous future for both businesses and individuals alike.

Population Growth

The projected growth of the Greater Manchester population and employment levels over the next 10–15 years is expected to drive a significant increase in demand for housing. As more individuals relocate to the city for work and education opportunities, the demand for rental properties is anticipated to continue rising steadily. This trend not only reflects the attractiveness of Greater Manchester as a vibrant and thriving city, but also highlights the need for continuous development and expansion of the housing market to meet the evolving needs of its residents.

Regeneration and Development

Manchester, has experienced remarkable revitalization in recent years. One of the noteworthy ongoing developments is the Manchester’s Northern Gateway project, which aims to transform the northern part of the city into a thriving and sustainable community. Additionally, Media City, a prominent media hub located in Salford Quays, has attracted numerous creative industries and has become a symbol of Manchester’s growth and innovation. These ambitious projects not only contribute to the enhancement of the city’s infrastructure but also have a positive impact on the local economy and property values, making Manchester an even more desirable place to live, work, and invest in.

A Diverse Mix of Properties

From modern apartments to traditional houses, Manchester offers a diverse range of properties that cater to different budgets and preferences. The city centre boasts sleek, contemporary developments, while the outskirts feature charming Victorian terraces and spacious family homes.

Significant Regeneration and Infrastructure Projects

Greater Manchester is currently undergoing a transformation with billions of pounds being invested in key projects. These include the £1 billion Northern Gateway project and the £330 million Manchester Life development. Investments into the city centre excellent transport links such as the £1 billion Metrolink tram expansion and the £650 million Manchester Airport transformation are improving the city’s connectivity and growth potential.

Transport Connections

Manchester, boasts excellent transport links that make it a highly sought-after location for both tenants and investors. With its strategic location, Manchester offers convenient access to various transportation options.

Manchester Airport, one of the busiest airports in the UK, serves as a gateway to the world. It provides direct connections to major international destinations, making travel seamless and convenient for residents and visitors alike. Whether it’s for business or leisure, the airport’s connectivity opens up a world of possibilities.

Not only is Manchester well-served by air travel, but it also offers efficient train and tram services within the city and beyond. The extensive network ensures smooth and reliable transportation, allowing residents to easily commute and explore different areas. This connectivity enhances Manchester’s appeal as a thriving hub for business, leisure, and cultural activities.

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Solid Rental Demand

The proportion of people renting and looking or rental accommodation has increased over the last decade and is expected to continue rising, making it an excellent time to invest in a Manchester buy-to-let properties.

Manchester has a large student and young professional population, including international students, creating a robust demand for quality rental student accommodation, including student property investment. Since young people are statistically more likely to rent – a high population of young people can dramatically boost the demand for a rental property in Manchester.

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Source: Zoopla

Average House Price

The average house prices in Greater Manchester is quite attractive when compared to other major UK cities. Currently,The average house prices across Greater Manchester is £232,190 based on HM Land Registry figures. This compares to the UK average house price of approximately £316,000.

This affordable entry point, coupled with the city’s strong rental yields and predicted house price growth, solidifies Manchester’s status as a prime location for buy-to-let property investment.

When purchasing an investment property in the heart of Manchester city centre, purchasing off-plan is the optimal strategy. By staying ahead of the market, you not only secure your ideal property but also position yourself for substantial future capital appreciation.

Extensive public and private investment into the city has seen the local housing market boom – particularly the market for luxury off-plan apartments in the city centre.

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Source: Zoopla

With Rothmore Property, a property investment company located in the city centre, navigating Manchester property investments has never been easier! Our team of expert consultants have extensive experience in new homes and the buy-to-let Manchester market. From the initial conversation to the moment we hand over the keys, we remain dedicated to addressing any inquiries or requests our clients may have.

Download our Manchester area guide to keep exploring the UK property market when looking to invest in Manchester!

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Why Manchester is the Bee’s Knees for Buy-to-Let Property Investment

 

Manchester, we love you. Not just for your charming Northern city vibe and infectious music scene, but because you make the hearts of property investors skip a beat.

In 2022, Mortgage Solutions reported that Manchester reclaimed its top spot as the best city for buy-to-let properties. Stating that Manchester is the best city for buy-to-let investment properties in 2023, climbing three spots since last year due to robust house prices and strong rental demand. Yes, you read that right. Manchester is back on the throne, and it’s not hard to see why.

Joseph Mews further emphasises the attractiveness of the Manchester’s property market. The city’s strong economic growth, coupled with a surge in population and employment rates, makes for a lucrative investment opportunity. The city’s strategic geographical location, with excellent access to other major UK cities, further amplifies its appeal.

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Promising Areas for Property Investment in Manchester

 

Salford

In recent years, Salford has experienced a remarkable transformation, thanks to substantial investments that have revitalized the city. One of the notable highlights is Media City, which serves as the hub for renowned broadcasting giants BBC and ITV. This dynamic presence has not only brought about a surge in economic growth but has also contributed to Salford’s reputation for exceptionally high rental yields. With its thriving media industry and attractive investment opportunities, Salford continues to be a sought-after destination for businesses and individuals alike.

Manchester City Centre

Due to its convenient proximity to a wide range of shopping, dining, and entertainment options, this area remains incredibly popular among residents and visitors alike. Despite the slightly higher house prices, the strong rental demand in this area makes it a lucrative Manchester property investment opportunity for those looking to capitalise on the bustling atmosphere and vibrant lifestyle it offers.

Northern Quarter

This area, renowned for its vibrant arts scene and eclectic indie boutiques, has become a sought-after destination among young professionals and creatives alike. Its dynamic atmosphere and diverse cultural offerings make it an excellent location for the rental market, with a plethora of unique and stylish housing options to choose from. Whether it’s exploring the local art galleries, attending live performances, or indulging in the trendy dining establishments, residents of this neighbourhood are sure to have an enriching and exciting experience.

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Manchester Metropolitan University: A Catalyst for Rental Demand

Manchester Metropolitan University is one of the largest and most popular universities in the UK. With over 30,000 students annually from around the world, including young professionals, this world-class institution is renowned for its commitment to teaching excellence and innovative research. It drives rental demand in the city, benefiting from the large student population and young professionals seeking suitable off-campus housing.

Property investment Landlords can expect a steady stream of potential tenants. The university’s sprawling campus, located in the heart of the city, further contributes to the demand for nearby rental properties. Additionally, the university’s ambitious development plans to enhance educational facilities and accommodation for the young professionals are expected to strengthen the Manchester property market, making it a compelling destination for buy-to-let property investment.

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Why Choose a Buy-to-Let Investment?

 

In these times of shifting mortgage rates and an increasing cost of living, many private landlords have chosen to exit the market. However, buy-to-let continues to offer opportunities for building wealth and generating passive income. Here are some of the reasons why buy-to-let remains a viable investment option:

Tangible Asset

Unlike other asset classes, property is a tangible asset that you can see, touch, and truly experience. This physicality not only provides an inherent sense of security and control, but it also offers a unique opportunity to appreciate the beauty and craftsmanship that goes into creating a home or a building. When you invest in property, you become a part of a rich history and a vibrant community, connecting with the past while building a future. It’s more than just a financial investment; it’s a tangible connection to the world around us.

Capital Appreciation

Over the long term, properties tend to increase in value. This is due to various factors such as supply and demand dynamics, economic growth, and population expansion. While the market may experience periodic dips and slowdowns, the overall trajectory has historically been upwards, providing a promising opportunity for investors. By investing in properties, individuals can potentially benefit from capital appreciation over time, building wealth and securing a stable financial future.

Attainable Upfront Cost

Investors can often take advantage of leveraging their capital when purchasing buy-to-let properties, allowing for a reduced initial investment cost. This attractive feature not only makes property investment more accessible but also opens up opportunities for a wider range of individuals to participate in the market. By lowering the barrier to entry, aspiring investors can explore the potential benefits of property investment and potentially build a diversified portfolio that generates both rental income and long-term capital appreciation.

Hands-off Investment

Investors have the exciting opportunity to engage a reputable property management company, particularly in newer buildings. By doing so, they can relish a truly hands-off investment experience, where these seasoned professionals diligently oversee the property and tenants on the landlord’s behalf. This invaluable service allows investors to not only enjoy peace of mind but also reclaim precious time that can be devoted to other ventures.

Passive Income

While changes in interest rates can have an impact on the profitability of passive income, the growth in rental prices has been significant. This passive income stream can either supplement your regular income or provide a solid foundation for financial independence.

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Manchester: A Symphony of Investment Opportunities

 

To sum up, Manchester is a gold mine for buy-to-let investors. Its robust economy, thriving cultural scene, and strong tenant demand make it an irresistible option for those looking to maximise their returns. So, let’s raise a toast to Manchester, the city that keeps on giving, especially when it comes to property investment opportunities.

Data from the HM Land Registry shows the average property price has increased by 40% since 2015. This is another feather in Manchester’s cap. House price growth can net buyers huge returns on their investments.

Remember, investment properties and property investments are not just about numbers and profits. It’s about being part of a story, a community, and Manchester’s story is one worth being part of. So, why not join the bandwagon and start your investment journey in Manchester today?

Thinking of investing in Manchester? Contact our team at Rothmore Property and let our expert consultants guide you through the top investment opportunities within the UK’s lucrative property market.

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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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