Manchester attracts largest number of foreign investments in a decade

Manchester named the best UK city for buy-to-let investment

Location is key for any property investment. If you’re looking to invest in rental property, it’s worth noting that Manchester has just been named the best UK city for buy-to-let investment.

Manchester topped Aldermore Bank’s Buy to Let City Tracker, beating out 49 other cities across the UK. The city has faced stricter lockdown measures than other areas of the UK. However, the local property market and economy has remained resilient.

Jon Cooper, head of mortgage distribution at Aldermore, says the private rented sector can play an important role in economic recovery.

“The private rented sector is vital to the economy right now and its recovery from the pandemic so landlords should seek portfolio advice from their lenders to see how they can look at new ways to support the sector.”

Aldermore’s ranking of the 50 best UK cities for buy-to-let investment was determined by analysing five key indicators. This included average total rent, the lowest number of vacancies as a proportion of total housing stock, short-term returns through rental yields, long-term returns through house price growth and percentage of the city’s population in the rental market.

Short and long-term returns

Manchester performed well across four out of the five key indicators. Strong rental returns and long-term house price growth are some of the main selling points for purchasing a buy-to-let investment in Manchester. Additionally, the city is home to one of the largest rental markets in all of the UK. Out of the entire city, private renters make up 31% of the population.

Jon Cooper says the tracker shows there is still lucrative short and long-term returns for buy-to-let investors. Manchester in particular provides impressive rental yields with room for capital growth as well.

Property prices have increased in Manchester by 4.1% annually on average over the past 10 years. The city in the north-west has also led UK house price growth since the end of the first lockdown earlier in the year. Additionally, Manchester has been named one of the best places to invest in buy-to-let property during the stamp duty holiday.

Growing demand

Throughout the past five years, there has been substantial amounts of investment in commercial and residential developments across Manchester. This had made it an especially desirable city to live in. And more and more people and businesses are being attracted to the city, bringing additional demand to the private rented sector.

Across the UK as a whole, there has been a surge in demand for rental properties. A report from Zoopla shows rental demand is 20% higher right now than in 2019. However, a lot depends on what you’re offering and where.

Some of the increase in demand in the rental sphere is coming as a result of people’s shifting priorities. Many tenants are looking for properties with more space and home offices due to the increase in working from home.

Jon Cooper comments: “There has been a high level of uncertainty for landlords since the Covid-19 outbreak and they have had to continuously adapt to a raft of challenges but, with so many working from home right now, it reinforces the importance of a robust and diverse private rented sector.

“The changing needs of renters, whether to move to a new location or a different type of property to fit flexible working demands, has created investment opportunities for landlords.”

BuyAssociation has investment opportunities available in Manchester. From buy-to-lets and HMOs to owner-occupier homes, all our projects are direct from the developer. Sign up for free to get early access to our best deals, or get in touch for more information.

Self-certified Sophisticated Investor

Please read

I declare that I am a self-certified sophisticated investor for the purposes of the restriction on promotion of non-mainstream pooled investments. I understand that this means:

I am a self-certified sophisticated investor because at least one of the following applies:

I accept that the investments to which the promotions will relate may expose me to a significant risk of losing all of the money or other property invested. I am aware that it is open to me seek advice from someone who specialises in advising on non-mainstream pooled investments.

High Net Worth Investor

Please read

I make this statement so that I can receive promotional communications which are exempt from the restriction on promotion of non-mainstream pooled investments. The exemption relates to certified high net worth investors and I declare that I qualify as such because at least one of the following applies to me:



Sign-up for first access to new developments and exclusive property investment opportunities.

We send limited and targeted emails on new launches and exclusive deals which best fit your areas. We are trusted by over 30,000 active buyers as their source for new stock.

  • New property developments
  • Professional market reports
  • Property deal alerts
  • Development updates
UK holiday let


Receive trending news straight to your inbox and stay up to date on all of the property market trends and advice.

Established since 2005 we are a leading voice of authority and commentary on the UK property market. Our news is trusted by Apple News & Google News.

  • UK housing market
  • Mortgage & money
  • Buy-to-let landlords
  • Guides & advice

Talk to us

Speak to our UK property experts today:


+44 (0) 333 123 0320

Open from 9am-6pm GMT


+852 6699 9008

Open from 9am-6pm HKT