New research has revealed that Manchester is the second-most popular UK city for millennial buy-to-let landlords. Coming just behind London, millennial investors are buying buy-to-let property in Manchester to take advantage of its excellent rental yields and capital growth.
Second Most Popular Investment City
The findings come from research by the lettings platform Mashroom. They surveyed 1,000 tenants and landlords across the UK to understand rental relationships during the pandemic.
The report found that 16% of all landlords in Manchester were millennials. Millennials are people born between the early 1980s and mid-1990s. London was the only UK city with a higher proportion of millennial landlords at 27%.
However, interestingly, the expected monthly rental yields were much higher for buy-to-lets in Manchester than London. In Manchester, this was estimated at £205.27, whereas landlords in London can expect to lose £253.84 each month.
The only other cities with higher estimated monthly returns were also in the north: Newcastle at £233.76 per month, Liverpool at £222.11 per month, and Leeds at £212.64 per month. Each of these cities had a much smaller proportion of millennial landlords than Manchester, at 4.38% for Newcastle and 5.11% for both Liverpool and Leeds.
A Young Average Population
So why are millennials more likely to invest in buy-to-let property in Manchester than almost anywhere else? As well as the reasons many national and international investors choose a Manchester buy-to-let – excellent rental yields; resilient market; high demand – Manchester’s young population may be a factor.
The average person living in Manchester is 33, i.e. a millennial. It makes sense that people making a first-time buy-to-let Manchester investment would also live in the city.
Manchester’s exciting atmosphere with plenty of opportunities to work and play make it a magnet for young tenants and investors.
Communication Is Key
The survey also found that the cities with the happiest tenants tended to be those with the highest proportion of millennial landlords. But rather than millennials being the reason for their happiness, tenant satisfaction actually comes down to communication.
Stepan Dobrovolskly, CEO of Mushroom, says: “Tenants and landlords often see each other as enemies, but a lack of communication is usually the reason why relationships break down.
“From what we’ve seen, by having strong lines of communication, both landlords and tenants have more respect for each other. This builds healthier relationships that create a better renting environment for everyone involved.”
Whether you’re a millennial or not, if you’d like to know about investing in a buy-to-let property in Manchester, get in touch with North Property Group now.