Manchester is the perfect city for property investment. Its strong economy, growing population and excellent connectivity have led to high rates of capital growth and excellent rental yields. Here are five reasons why you should consider Manchester for your next buy-to-let property.
1. Strong economy
The ten boroughs of Greater Manchester together make the largest city region outside of London. The gross value added (GVA) of Greater Manchester is a massive £62.8billion and the economy is one of the fastest growing in the UK. This growth isn’t slowing down either, with forecasts predicting that Greater Manchester’s GVA will increase by 45% by 2036.
2. Brexit-beating property market
Unlike many UK cities – London included – Manchester’s property market hasn’t struggled under the 2016 Brexit referendum decision. Since 2016, Manchester has consistently ranked in the top 5 cities for annual house price growth. A recent report showed that property prices in the city are 7% higher year-on-year, compared to the UK average of 4.6%.
Manchester’s affordable property prices create good average yields as well as rental price growth of nearly 6%. Some areas of Manchester boast some of the highest yields in the UK, such as the M14 postcode which has average yields of 11.25%.
3. Top student city
Manchester and neighbouring Salford are top destinations for students from the UK and overseas. There are plenty of universities in the region, including the UK’s largest single-site university campus at the University of Manchester. The city’s thriving culture and vibrant nightlife are also huge magnets for students.
The requirement for student housing in Manchester far outstrips the current supply. Therefore those who choose to invest in student property here will experience great demand from potential student tenants.
4. Growing population
As well as students, Manchester is a popular destination for the UK’s young professionals. The city’s excellent jobs market also ensures around 20,000 students decide to stay in Manchester after graduation. Consequently the Manchester population has become one of the youngest in the country, with around 60% aged between 25 and 30 – ages that are most likely to rent.
Experts predict that the city centre population will continue to grow. Forecasts show an increase of 125,000 by 2025, creating an even greater need for residential accommodation.
5. Excellent connectivity
There is huge investment underway in Manchester to make it a truly connected city. HS2 will majorly improve train travel in and out of the city, reducing journey times to London to just over an hour. A £1billion investment into Manchester Airport will increase the number of global destinations reachable from the city. There are also major improvements planned on the local road network to help improve traffic flow.