Although we’re only just over halfway through the year, Manchester has already proven itself to be the property success story of 2021.
If you’re wondering where to buy an investment property, here are 5 reasons why investors are already recognising Manchester as the investment hotspot of the year and why it should be on your list too.
1. It’s resilient
Throughout the pandemic, Manchester’s economy has time and time again proven its resilience. While other cities – notably London – were struggling through covid, Manchester has been one of the country’s success stories.
A strong economy and property market is vital when deciding where to buy an investment property.
2. A growing population
Over the past few decades, Manchester’s population has boomed. In the ten years to 2016, the number of people living in the city grew by a massive 16.7%. In recent years, Manchester has undergone a surge of people leaving London for the city, which has only increased during the pandemic.
Add to this the exceptionally high graduate retention rate of 60% in this student city (second in the UK only to London), and it creates the perfect climate for property investors of high demand. This brings us onto our next reason…
3. High rental demand (and yields)
A growing population need somewhere to live. But with Manchester’s housing supply still struggling to keep up with demand, buy-to-let investors are at less risk of having empty properties on their books.
And with high tenant demand comes high rental yields. The average rental yield in Manchester is 5.37%, though they can reach much higher. For example, Manchester Waters Phase III is predicted to generate rental yields of 7%.
And with affordable property prices Manchester is a great choice for first-time investors deciding where to buy an investment property.
4. An established build to rent sector
Buying a property from the build to rent sector is a great choice for property investors. These properties typically have larger living spaces and luxury amenities, making them especially popular with tenants who are willing to pay a premium to live there.
Manchester has the highest build to rent sector outside of London, so there is a lot of choice for people wanting to invest in this kind of buy-to-let property.
5. Large economic investments
As the heart of the Northern Powerhouse, Manchester is benefitting from large levels of investment. As well as the well-publicised HS2 project, there are also major redevelopment projects such as the £4billion Victoria North scheme underway.
Such investments will further boost an already secure economy, bringing more jobs, people and tenant demand to Manchester.
Find out more
Whether you’re still wondering where to buy an investment property or if you’ve already made your choice, find out more about investing in property by talking to North Property Group. Contact us today.