In July 2025, the UK and Japan signed a major partnership aimed at accelerating cross-border investment. For Japanese property buyers, this means greater access to the UK market, favourable conditions for overseas investment, and stronger long-term confidence in high-performing cities like Manchester.
At Rothmore Property, we’ve seen growing interest from Japanese buyers looking to diversify abroad. With strong yields, rising tenant demand, and regeneration-led growth, Manchester stands out as a key destination. And with government policy now supporting deeper bilateral ties, the investment case has never been clearer.
Key Takeaways
- The UK and Japan have signed a 2025 investment partnership to support growth and cross-border trade
- Manchester offers up to 7% gross yields, with property prices starting from £239,000
- Japanese investors benefit from a favourable GBP/JPY position and strong demand from students and professionals
- Rothmore Property supports overseas buyers with a full-service model from sourcing to completion
2025 Partnership Strengthens UK and Japan Investment Relations
According to the UK Government, this strategic partnership with Japan focuses on key sectors like infrastructure, clean energy and innovation. But it also signals broader alignment between the two economies, including support for cross-border real estate investment and institutional capital flows.
With Japan already ranking among the top ten sources of foreign direct investment into the UK, the partnership aims to strengthen the investment landscape even further. This includes streamlining financial regulation, deepening trade ties, and reinforcing economic stability. For investors, these are all positive signals.
In short, Japan is doubling down on its global investment outlook, and the UK, especially thriving cities like Manchester, is firmly in focus.
Why Manchester Ranks High for Japanese Investors
Japanese investors are typically long-term focused, risk-conscious and value-oriented. Manchester offers all three. It combines strong economic fundamentals with ongoing regeneration, making it ideal for those seeking yield and long-term capital preservation.
- High yields: Prime rental zones in Manchester deliver gross yields up to 7%, outperforming most other major UK cities and global markets (Rightmove, 2025 Buy-to-Let Index)
- Growing tenant base: With over 120,000 students across five universities and a steady stream of professionals in tech, finance and media, demand remains broad and resilient (MIDAS Manchester)
- Value pricing: One-bedroom apartments in central Manchester developments typically start from around £239,000. Two-bedroom options often begin around £310,000 depending on location and specification. This makes Manchester a compelling option, balancing accessibility with strong yield potential when compared to London
- Regeneration boost: Large-scale projects like Victoria North, Mayfield, Great Jackson Street, and Ancoats are transforming the city and pushing up asset values
From a Japanese perspective, investing in Manchester isn’t just about returns. It’s about entering a stable market with real growth potential and strong cultural alignment.
Currency Advantage and Wealth Diversification
In 2025, the GBP/JPY exchange rate hovered around ¥180 and ¥185, a relatively attractive band for Japanese investors looking to convert yen into overseas assets. This makes UK property more accessible and cost-effective compared to previous years.
Property in Manchester acts as both a hedge and a diversification tool for Japanese buyers. With interest rates in Japan remaining historically low, investors are seeking stronger returns abroad. Property offers a tangible, income-producing asset in a currency with more upside potential.
This is especially relevant for family offices and individual investors looking to preserve wealth, gain exposure to foreign markets or secure assets for children studying in the UK.
How to Buy UK Property from Japan
Buying property in the UK as a Japanese national is straightforward, and Rothmore Property has over 20 years of experience supporting overseas clients. Here’s how the process works:
Consultation: We begin with a tailored consultation call to understand your goals.
Property Selection: We shortlist options that meet your goals, whether focused on yield, capital growth or long-term letting
Reservation: Once selected, we secure the unit with a reservation fee and start the legal process
Due Diligence: You’ll need proof of funds, ID and anti-money laundering checks. We guide you through it with Japanese-language support if needed
Legal and Completion: Our partner solicitors manage contracts, and we assist with payment milestones, currency exchange and progress updates
Lettings and Management: We can support you in letting the property post-completion, assisting with reliable tenant sourcing. We also offer high-quality furniture solutions to enhance the appeal of your property and attract strong, long-term tenants
Whether you’re buying from Tokyo, Osaka or Nagoya, the entire process can be completed remotely. There’s no need to visit the UK in person unless you would like to. Our team can arrange virtual viewings and manage everything on your behalf, keeping the process as hands-off and seamless as possible.
Why Rothmore Property Supports Japanese Investors So Well
We’re not just an agency. We’re a strategic investment partner. Rothmore Property works with clients across Asia and the Middle East to deliver tailored opportunities that align with long-term goals.
For Japanese investors, we provide:
- Exclusive access to off-plan and completed properties in high-growth Manchester districts
- Local market insights, regeneration forecasts and rental demand projections
- Introductions to trusted mortgage advisers, legal teams and FX specialists (foreign exchange specialists)
- Full aftercare including lettings, management and resale planning
With over 60 developments across key UK locations, we help clients build lasting portfolios in cities that are growing in value and in global reputation.
Final Word
Manchester is one of the UK’s strongest-performing property markets, and the data proves it. Foreign direct investment into UK real estate rose by 17% year-on-year in Q2 2025 (Bloomberg), with Manchester seeing one of the highest increases in buyer activity outside London. The city’s economy is now worth over £70 billion and is projected to grow by 16% by 2028 (ONS).
With the population expected to rise by more than 70,000 in the next five years, housing demand remains steady particularly in regeneration zones and around new transport links. Gross rental yields continue to average up to 7%, while lower entry prices compared to London or Tokyo make Manchester a compelling choice for long-term capital growth.
