High Manchester Rental Yields Continue to Attract Property Investment

October 8, 2022

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Article Summary

Manchester
  • Research shows rental yields in Manchester soared by 23.4% across the city.

  • Lower cost of living and employment prospects are bringing more and more people to Manchester from the south of England.

  • Savills predicts the North-West will have the potential for the greatest house price gains in the next five years. 

High rental yields are continuing to attract investors of buy to let properties to Manchester. The city, along with other parts of the north west, is generating rental yields far higher than is possible in other parts of the UK.

In a new report by Sequre Property Investment, compiled using Rightmove data, Manchester and the north west top the leader board for the best rental returns to be made from property investments.

Exceptional tenant demand

The research found that rental yields from buy to lets in Manchester had soared by 23.4% across the city. This has been boosted by exceptionally high tenant demand and the large number of new residential developments in the pipeline.

The tenant demand isn’t just being driven by local people though. More and more people are leaving the south east for Manchester, attracted by the lower cost of living and excellent employment prospects.

In fact, ever increasing numbers of Londoners are moving to Manchester but continuing to work in London, thanks to Manchester’s excellent transport links and the rise of hybrid working.

High levels of investment

The property investment company highlighted the rise in the number of investors looking for high yielding flats in the Manchester region. Over the last year, 56.4% of their clients have purchased a buy to let in Manchester and the north west.

The tenant demand that is driving these excellent yields is in turn being driven by high levels of investment in the region. The hundreds of billions of pounds coming into the regional economy is attracting higher numbers of professionals. This tenant group expect high quality rental properties and are prepared to pay more for them.

Healthy property price growth

It is not just rental yields that make Manchester such a great place to make a property investment. Manchester has had some of the fastest-growing property prices in the country, increasing profit from capital growth.

And these rises aren’t forecasted to slow down any time soon. Savills predicts the north west will have the potential for the greatest house price gains in the next five years.

What is property investment?

Put simply, property investment is property purchased with the intention of generating financial returns for its buyer. These returns could be in the form of rental income through buy-to-let properties, house price growth through the future sale of the property or both. Property investments can be owned by individuals or organisations and can be short, long or medium term.

Find out more

To learn more about buy to lets in Manchester or about property investments anywhere else in the lucrative north west, contact North Property Group now.

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The Bailey

From £262,450

   Gross Yield: 6%
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   Lease Length: 250 Years

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