Locations
Manchester Property Investment
Manchester Property Investment
At Closefield Property we believe that Manchester property investment is a great option for those looking to grow their capital. The northern city not only was hailed as the best buy-to-let area of 2021, but it’s also the second-largest UK economic area outside of London. With 31% of Manchester’s population being private renters, it also offers one of the largest rental markets in the UK. Two famous football clubs, a booming TV and film production industry, as well as a rich musical heritage are only some of the factors contributing to the city’s economic success.
Between 2017 and 2013, Manchester benefitted from the Structural Funds program and received an investment of £136M aimed at supporting the development of the region. This contributed towards the growth of local businesses, created new opportunities for professionals, and enhanced the city’s educational and agricultural programs. Overall, Manchester has this investment to thank for seeing the city revived and transformed.
Moreover, the big improvements to many of Manchester’s areas and infrastructures attracted new talent to the city. Nowadays, its tech industry is hailed as one of the best in Europe and an exciting social scene has formed around it. With events, venues and opportunities everywhere, Manchester has attracted lots of entrepreneurs and founders to the region. The city’s cosmopolitan character, affordable property prices and range of opportunities has attracted young professionals to the area and contributed to its growth and success.
What amenities does Manchester offer?
Alongside its entertainment venues, Manchester is famous for its tech and design industries. Football games, festivals, events and gigs attract talent and tourists to the city and make it a desirable property investment location.
More than just that, high property prices in the south have made many investors turn their eyes towards up-and-coming investment opportunities up north.
Manchester property Values
With a 9% increase in house prices compared to an year earlier, Manchester is one of the leaders in house price growth. Although property is cheaper than London prices, the average house price in Greater Manchester is almost eight times higher than the average salary in the area.
According to Plumplot’s latest research, the average property price in Manchester for 2021 is £223k. Overall, it has increased by £19.0k over the course of the past year.
Is there rental demand in Manchester?
According to the Manchester Evening News, a local newspaper covering news in the Greater Manchester area, there is ample demand for rentals in the region. Moreover, the high demand has led to a rise in rent prices and an increase in opportunities for buy-to-let investment.
Additionally, the newspaper reported that with a 30% increase in renting costs, Manchester remains the joint most expensive borough to rent in Greater Manchester. It ranks alongside Trafford at £775 a month based on figures from October 2017 – September 2018.
In what areas of Manchester have rent prices increased?
Area
Greater Manchester
Bury
Salford
Bolton
Stockport
Trafford
Rent price increase
7.4% in the last 12 months (June 2020–June 2021)
20% in the last 4 years
18% in the last 4 years
17% in the last 4 years
13% in the last 4 years
11% in the last (4 years)
Manchester regeneration
Regeneration efforts have transformed the Manchester skyline and the nearby Salford completely in recent years. Organised by both local councils and private businesses, the projects have turned the area into a hub for innovation for large companies, the creative industries and retailers.
100 Embankment
Situated in Salford, 100 Embankment will soon become a nine-storey office block complete with a roof terrace offering views of the Manchester and Salford skyline. The new office spaces are ideally tailored to the young professionals Manchester is attracting with its amenities and thriving economy.
Local Crescent
A sister-scheme of the Local Blackfriars high-rise residential development in Salford, Local Crescent is comprises 399 apartments and seven townhouses spread across two 22 and 16 storey towers. The development is made up of one, two, and three-bedroom stylishly decorated residential apartments perfectly suited to the demands of renters.
Due to the high-end amenities this development offers, such as a swimming pool and roof terrace, it is expected to attract higher paying tenants. Albeit high in price, the apartments are competitive in terms of the local renting market and are sure to attract lots of the young professionals moving to Manchester for work.
Greater Manchester property investment
The Greater Manchester region has a population of close to 2.5 M people and offers great investment opportunities outside of the popular central Manchester locations. With 10 authorities to choose from in the region, there are ample options for investment.
Each borough has its own local council, which governs the authority. They cooperate with the Greater Manchester Combined Authority headed by Greater Manchester mayor Andy Burnham when necessary. Due to the governing structure, it is essential to research the specific borough you’re interested in investing in before making any big decisions.
The city of Manchester property investment
The City of Manchester has many attractive features that make it the bustling heart of the area. Its economic prospects attract professionals from a wide range of sectors and large tech companies opening offices there stimulates the industry even further. Moreover, its large student population makes the city a centre for talent, innovation and culture and entertainment.
Manchester has the biggest city living market outside London with over 50,000 residents. This makes the city a great choice for buy-to-let investors, especially with the central M1 postcode offering a steady yield of 5%.
Manchester suburbs such as Levenshulme to the south-east and Newton Heath in the north offer the cheapest Manchester property investment opportunities, where good choices can offer a 5-6% yield. The Didsbury suburb, for example is a popular place for families and young professionals and can offer yields of 3-4%.
When it comes to students, the parts of town south from the city centre prove to be the most popular. Rusholme and Fallowfield are particularly close the Manchester university and there is a large demand for buy-to-let properties for student living. Totally Money’s Buy To Let Rental Yield Map says this is one of the best buy-to-let areas in Manchester – the M14 areas offer yields over 7%. An HMO type property could, however, return 12% or more.
Manchester
Population
553,200
Average house price
£210,000
Manchester
Population
553,200
Average house price
£210,000
Manchester Property Investment | Salford
Directly bordering Manchester city centre, Salford is one of the top buy-to-let places in the area. A university city just like Manchester, Salford offers lots opportunities for buy-to-let investors and is around 12% cheaper on average than it’s neighbour. For example, the M3 postcode located in Salford is part of Manchester city centre and can return a yield of 6%.
In Salford’s suburbs yields can be as high as 6.5%. With prices as low as £50,000 in neighbourhoods such as Ordsall, Weaste and Eccles, this can be a great opportunity for bargain hunters.
The Salford Quays/Media City area offers yields of around 5%. It is located around the old docklands and has undergone large regenerations in recent years. The area is known as a media hub with BBC and the ITV Coronation Street set located on its territory and is set to expand in the coming years.
Salford
Population
254,400
Average house price
£184,800
Salford
Population
254,400
Average house price
£184,800
Manchester Property Investment | Stockport
With yields averaging 3-4%, Stockport is known as Greater Manchester’s most expensive borough. It is located just south of Manchester city centre and a popular living place for city commuters. The Heatons are popular commuter areas while further out places like Marple, Hazel Grove and Bramhall are right on the edge of the Peak District.
Although Stockport’s central areas have suffered an economic decline, especially in retail, a £1 billion regeneration plan is set to bring businesses back to the area in the coming years.
Manchester Property Investment | Stockport
With yields averaging 3-4%, Stockport is known as Greater Manchester’s most expensive borough. It is located just south of Manchester city centre and a popular living place for city commuters. The Heatons are popular commuter areas while further out places like Marple, Hazel Grove and Bramhall are right on the edge of the Peak District.
Although Stockport’s central areas have suffered an economic decline, especially in retail, a £1 billion regeneration plan is set to bring businesses back to the area in the coming years.
Stockport
Population
291,045
Average house price
£295,300
Stockport
Population
291,045
Average house price
£295,300
