Thinking of buying a property to let it out? Manchester offers some of the most attractive opportunities for property investment anywhere in the UK. Here, Dakota Murphey looks at six reasons you should put your money in buy-to-let properties in the city.
- Affordable property prices
Despite being one of the UK’s most vibrant cities with one of the largest economies in the country, property prices here are still relatively affordable. According to Rightmove, the average price for properties sold over the past year was £175,248.
When you compare that to other large cities like Birmingham (£174,397), Leeds (£192,433), Bristol (£287,519) and Edinburgh (£245,750), Manchester comes out very favourably. This means that it takes less initial capital investment to get a buy-to-let property here. What’s more, house prices in Manchester are forecast to increase by 24 per cent by 2020, so buying now could see you with a far more valuable investment in just a few years.
But don’t just take our word for it. Speak to local property experts and consult experienced Chartered Surveyors such as Cosey Homes and check out the local property market for yourself.
- Great rental yields
Combine Manchester’s low property prices with the fact that it is actually a popular place to live with a booming economy and it’s easy to see why buy-to-let investment here is such a smart move. Rented property is sought after in many areas of the city so rental rates are at high levels.
This allows for Manchester to achieve average rental yields of 7.98 per cent, which is one of the highest in the country. When you consider that some areas of London have rental yields as low as 2.88 per cent, it shows how profitable buy-to-lets in Manchester can be.
- The student market
One of the most popular markets for buy-to-let landlords to target is students. And Manchester is one of the best places in the UK to do that. The city has three major universities (University of Manchester, Manchester Metropolitan University, University of Salford) as well as a number of further education colleges, with a total of more than 90,000 students.
The advantage of student properties is that they can provide a very stable and predictable income. If you’re considering renting to students, Manchester is definitely a great place for it.
- The Northern Powerhouse
The current government has put in place the initiative known as the Northern Powerhouse. It is a set of policies that are targeting investments across the major northern cities, and Manchester looks set to benefit enormously from it. The scheme will look to improve transport links in the region as well as devolving additional powers.
Manchester is expected to take a large of share of the forecasted £50bn of growth from the Northern Powerhouse policies. This is great news for Manchester’s economy, and investing in the city now gives you the opportunity to enjoy the benefits of that growth.
- A growing population
Increasingly, Manchester is being seen as a truly prestigious city. In 2016, Manchester was again voted the most liveable city in the UK. Aside from being fantastic for current Manchester residents, it’s clear that Manchester is attracting people here with its brilliant combination of high levels of investments and a growing jobs market.
The population is set to increase by more than 125,000 people over the next few years. That will mean there will be more people here in need of rented accommodation, which will push up rent even more.
- Cultural investment
Part of the reason that Manchester is such a desirable place to live is that it has grown not just in terms of jobs and properties. The city has become one of the cultural hubs of the UK with a thriving music scene, amazing restaurants and a nightlife that rivals London. Construction is also set to start on The Factory, a £110m arts and culture complex that should be completed by 2019.