Manchester property investment continues to outshine London and the south of England as a key buy-to-let location, with the city now positioned as one of the top places to invest in the year ahead.
Property investors based in both the UK and overseas are increasingly seeking an alternative to the high prices and lower yields of the capital city, particularly in the current climate where borrowing and other costs remain higher.
At the same time, residents including homeowners and tenants are looking to key locations in the North of England thanks not only to better affordability, but to the vastly improving jobs prospects and quality of life on offer thanks to a major regeneration drive.
Greater Manchester is one of the key locations set to benefit from this push to accelerate regeneration and improvements in the North West region; and this is one of the factors putting Manchester property investment at the forefront, with huge levels of growth forecast in the housing sector over the coming years.
Manchester property investment outlook
For many investors considering Manchester property investment, the strong outlook for both rental yields and potential capital appreciation is the biggest draw to the city.
Recent research from UOWN has predicted that the North West will see the fastest house price rises across the whole of the UK over the next five years, with a cumulative 29.4% increase between now and 2029. Meanwhile, JLL’s research forecasts the city of Manchester leading the way with one of the highest house price hikes across UK cities.
Over the past couple of years, Manchester has continually bucked the trend across the country when it comes to the strength of its housing market, having consistently ranked at the top of Zoopla’s top 20 cities for house price growth. This underlines the strength of Manchester property investment, demonstrating a consistently resilient market where those of the South have struggled.
From a rental market perspective, Manchester property investments in the buy-to-let space have seen rents soar more than 72% over the past 10 years, compared with a UK average increase of 44.4%, as more and more tenants have flocked to the city.
This means stronger rental yields, too, with Manchester property investments achieving average yields last year of 6.5%, compared with the national average of 4.75%, according to the latest figures. In some key parts of the city and surrounding areas, yields will surpass this
£10bn investment will transform Greater Manchester
Greater Manchester will undergo a 10-year ‘Growth and Prevention Delivery Plan‘ bringing £10bn of investment to all 10 boroughs, with funds being funnelled into things like transport, housing and innovation, while creating more collaboration between developers, investors and construction companies.
The plan is set to deliver levels of urban regeneration on a scale that Greater Manchester Mayor Andy Burnham has described as “not seen before in my lifetime”.
He added: “Greater Manchester is ready to kickstart a new decade of growth at the heart of a resurgent North.
“We’ve used our devolved powers to deliver the biggest change in public transport since the ‘80s. Now we’ll use them to deliver transformative regeneration across our city region.”
The investment is expected to further boost Manchester property investment prospects, creating more jobs, better transport and infrastructure, and transforming many areas to make them much more desireable places to live.
It will make Greater Manchester “the best place in the UK to invest and do business”, says Bev Craig, Leader of Manchester City Council, adding: “This is a long-term plan to make people’s lives better, building on our proven track record of removing blockers to growth and catalysing development that will bring transformative benefits to towns and cities across our city region.”
A strong economy
Overseas investors in particular are being increasingly drawn to Manchester property investment due to the strength of the city’s economy. The ten metropolitan boroughs of Greater Manchester currently represent the largest city region economy outside London, and it has also seen its economy soar over the past decade.
According to figures from Invest in Manchester, it has also been one of the major city regions driving job growth in the UK, with an 84% rise between 2002 and 2015. This represents an increase at twice the rate of jobs growth across the North as a whole.
Its improving status as a key UK city has also led to huge population growth over the past 20 years, with the number of people living in the city increasing from 422,000 to 600,000 over the past 20 years, according to ONS figures.
A further 40,000 are expected to have been added to this by 2026, according to council predictions, which will further boost demand for housing in the city. Manchester property investments will therefore be well-positioned to maximise this growth, as greater numbers of tenants choose Manchester.
If you’re looking to secure a Manchester property investment opportunity, get in touch with BuyAssociation today to find out more about our current and upcoming projects.
