Is Property Investment in Manchester the Way Forward?

Property investment in Manchester is going from strength to strength, with its appeal to both investors and renters alike.

With HS2, quality of life being of paramount importance, and large, multi-national organisations moving to Manchester, there’s a growing demand for properties.

With capital growth improving year-on-year, average property prices in Manchester have increased from an average of £95,500 to £220,000 in the last 10 years – a 130% growth.

 When you look at the numbers, it’s easy to see why investors are flocking to Manchester:

  • 24.1% capital growth expected by 2024 – the highest expected in any UK region
  • 69% average rental yields – this is higher than those in London
  • Number one place to be a UK landlord (as voted for by landlord in a survey for GoCompare)
  • 13th highest employment growth in Europe
  • 117% increase in city centre population between 2018-2019

Who are Manchester’s renters?

As a city region that boasts multiple large, world-class Universities, Greater Manchester – and Manchester in particular – has an excellent market for both international students and students inspired to move here from different parts of the UK.

Greater Manchester has one of the largest student populations in Europe, with around 96,200 students studying there.

Not only is there an excellent student market, at the last census in 2017, but it was also recorded that Manchester alone has over 129,000 young professionals.

With the shift in working from home in 2020-21, it is no surprise that these young professionals are now more bothered about their home surroundings than they’ve ever been. It has been widely reported that property prices are at an all-time high, and it is highly likely this is a large factor.

Research has shown that the current generation of young professionals is more likely to move to job roles and more open to moving to other cities for better opportunities. Where previous generations often stuck to one location in adulthood, this is no longer the case.

Because of this, these young professionals who have disposable income are more likely to rent. When renting, they are looking for a high-quality lifestyle and top-of-the-range amenities.

Why invest in Manchester?

Manchester has been voted ‘Best UK City to live in’ twice in The Global Liveability Survey, compiled by the Economist Intelligence Unit. 

This is due to its rich heritage, footballing prowess, and its accessibility to tranquil countryside spots. It’s also due to its affordability compared to cities further south like London.

Not only this, Manchester’s economy is one of the fastest-growing in the UK. Now rated as the second most globally influential city in the UK after London, Manchester is quickly becoming the place to be.

The quality of life is also considered one of the highest in the UK due to its job prospects, affordability, and social scene.

How safe is your investment?

Over the next five years, it is expected that the highest Sales Price Growth in Manchester will grow by 17.1% and Rental Price Growth will increase by 16.5% – both are much higher than the UK average.

It is expected that investments are secure in the region, with the city becoming recognised worldwide as a place to be for large organisations, such as AstraZeneca, Gazprom, Siemens, the BBC and more.

The above organisations have made a conscious decision to base themselves in the north of England, and specifically Manchester because of the opportunities and the recruitment talent available in the city.

Over 80% of FTSE 100 companies now have a presence in Manchester, as well as 50 international banks. This makes the city a lot more attractive for graduates to remain there.

Be part of a city being regenerated

Manchester is currently going through a multi-billion-pound regeneration scheme to improve areas across the city, as well as Manchester Airport.

As previously mentioned, it is also one of the cities benefiting the most from the current HS2 project. As a city that is already very well connected locally and nationally, this project will see this improve vastly.

According to Deloitte’s Crane Survey, last year saw a 45% increase on 2019 figures in the number of residential schemes starting in Manchester. The city is thriving and it’s a great place to invest.

What’s even better, is that experts believe the city’s growth curve is only just beginning, with growing demand expected. 

Demand for buy to let property

As a city, Manchester is topping all property performance indexes, making it one of the strongest (and most popular) places to invest right now.

Research has shown that Manchester city centre is an area very much in demand. With more people than ever before expected to live and work there over the next 10 years, it is estimated that the city’s residents require 750 units more than what is available.

One of the largest Generation Y (18–24-year-olds) populations in the UK is also based in Manchester. Purpose-built rental property is just what this age range is looking for, and investments in the city are reaping the rewards because of this.

Not only does it currently have a large population, but this is also expected to rise 15 times the rate new homes are currently being built at. This is set to put high-quality investments in an excellently competitive position going forward.

A global city

Manchester is a city that has a lot of interest from overseas investors. With direct flights to the Middle East, China, and Southeast Asia, it’s a well-connected city with a lot to offer.

According to property experts, Manchester will be a main focus for international investors over the next 12 months. In recent months, the city’s low average house prices and high rental yields have attracted interest from places such as China and the Middle East away from London investments.

With demand outweighing supply in the city, it’s no surprise that investors see Manchester as an exciting place to invest.

Where in Manchester should I invest?

Manchester’s property market is seeing excellent rental yields and capital growth.

This is particularly strong in the city centre itself, with demand so high that developers can’t keep up.

With more and more people moving to the region, your investment needs to be of the excellent calibre to stand out from the crowd.

The Blade is an exciting development in Manchester’s new skyscraper district. An impressive location with an equally impressive offering, we’re delighted to be enriching investors’ portfolios with these high-quality apartments.

With prices starting from £247,000 and 6% yields projected, The Blade is one of the best schemes in the market.

Not only will your investment reap rewards, so will your tenants, with the complex offering:

  • A state-of-the-art gym
  • Sauna and steam room
  • Community park
  • Podium level roof garden with views of the city
  • Subtle design and elegant features

Get in touch

If you want to learn more about investments in Manchester, in particular The Blade, register your details and a member of the team will be in touch.

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