In two separate studies, Manchester and Salford have been named the best and most profitable UK areas for rental property investments. The buy-to-let market in Manchester beat 49 other cities to top Aldermore Bank’s Buy to Let City Tracker. And research by the CIA Landlord revealed that Salford is the most profitable city for landlords.
A resilient market
Despite strict lockdown measures, Manchester’s buy-to-let market and overall economy are thriving. A strong private rented sector can boost economic recovery. And Manchester is a shining example of this.
The resilience of Manchester’s property market is one of the reasons the city came out on top in the Aldermore report. To compile the final rankings, researchers analysed each city against five key indicators. These were average total rent, lowest proportion of vacancies, short-term returns through rental yields, long-term returns through capital growth and percentage of people in the rental market.
Manchester’s buy-to-let market performed strongly against four of these. Over 31% of people in Manchester rent privately with landlords getting excellent rental yields from their properties here. Capital growth is also strong; property prices have grown by an average 4.1% year-on-year over the last decade.
The profitable north-west
The CIA Landlord study shows that Salford, which forms part of Greater Manchester, has also undergone strong house price growth in recent times. The stamp duty holiday has helped push up house prices here. Despite the strong growth, investors can still snap us some great deals as Salford property prices are still below the UK average.
The low house prices at an average of £173,111 and average monthly rental prices of £1,052 make Salford the best place for buy-to-let investors whose focus is rental profits.
Just behind Salford in second place was Manchester. House prices here average £193,681 and monthly rents on a Manchester buy-to-let property average £1,141.
Two separate studies highlight Manchester and Salford as buy-to-let hotspots, so the north-west remains an excellent option for property investors.
Helping to secure the north-west’s place at the top of the property rankings is the huge level of regional investment in recent years. Both Manchester and Salford have undergone dramatic regeneration, transforming them into truly international cities.
All of this investment has made Manchester and Salford especially desirable places to live. Companies and people are increasingly moving to Manchester, driving increased demand and a thriving private rented market. And with much more investment in the pipeline in 2021, this demand is only set to gain pace.
To find out more about buy-to-lets in Manchester and Salford, contact the northern property experts at North Property Group today.