Stockport in Greater Manchester has been drawing growing levels of interest from property investors as ongoing regeneration and upcoming transport improvements make it a key commuter town.
Property investors have been eyeing up the merits of Stockport for some time, with multiple new developments in the heart of the town selling out quickly and subsequently being snapped up by tenants moving in.
One of the main draws for both buyers and renters is the cheaper prices on offer than in neighbouring Manchester. The average price of a flat in Stockport town centre, according to the Office for National Statistics latest figures, is £175,000. This compares with an average price of £203,000 in Manchester city centre.
The latest research from Compare My Move shows that average rental prices in the commuter town are £1,464 per month right now, while tenants living in Manchester might expect to pay more than £100 more a month at £1,580 on average.
Is high demand opening up new areas?
Manchester remains a hugely popular location for both property investors and tenants, and recent investment and redevelopment announcements have made the city even more sought after.
However, because of this, competition for properties is very high, and this could be behind the increase in private renters moving further afield according to Compare My Move.
It has listed Stockport as the number one Manchester commuter town, with more than 12% if Manchester dwellers leaving the big city to move there. This combines with the fact that only around a third (36%) of tenants moving house in Manchester last year stayed in the city, as demand for homes has skyrocketed.
The research listed Salford as the second top Manchester commuter town, where property prices are also lower than both the city and Stockport, while rents are slightly higher than in Stockport at an average of £1,478 per month.
Other top-ranking destinations for renting workers commuting into the city were Cheadle, Altrincham, Warrington, Bury, Sale, Liverpool, Oldham and Bolton. Oldham offered the cheapest rents on the list at just £893 per month, while the most expensive was Altrincham where rents were an average of £2,569 per month.
Stockport’s ‘regeneration effect’
In recent months, the North West region as a whole has seen an uplift in tenant demand at a rate that surpasses most other parts of the country, and this is pushing rental prices up faster too. For property investors seeking strong rental yields, this puts the North West high on the agenda.
According to recent figures from Rightmove, Stockport has seen the second-fastest rental growth out of anywhere in the UK, with a 16.1% surge in rents over the past 12 months, which is a testament to the soaring tenant demand.
The town stands out for its recent regeneration efforts, and it continues to undergo a £1bn overhaul that’s set to deliver thousands of jobs and homes, and significantly boost infrastructure.
So far, the Town Centre West area has been transformed with a new transport exchange, additional housing to meet demand, and new commercial and social spaces. This is already attracting growing numbers of businesses to the town, along with new residents who are drawn to the area’s improving status.
Last year, Stockport made headlines in the national press, after it was named as the top place to live in the North West of England in the Sunday Times Best Places to Live guide. It was labelled “one of the most exciting towns around” by judges who visited the town. It also appeared alongside Tameside in the top five UK locations for rental demand – and the latest figures highlight the fact that this has continued.
For property investors and landlords, the strength of existing demand along with the planned future improvements coming to the town set it apart as a destination that can provide excellent returns through both rental income and the prospect of capital appreciation.
If you’d like to get ahead of the curve and invest in Stockport, get in touch with BuyAssociation today to find out about our current and upcoming investment opportunities.
