The UK property market is thriving, and 2018 is set to be yet another big year for the industry, with very high expectations across the board. A big influence of this is the strong growth and performance of the UK’s northern cities, with Manchester leading the pack. Manchester as a city is certainly on the mind of UK property investors, proving to be an investment hotspot and emerging as one of Europe’s top cities to invest in.
Although many investors know that Manchester is a very strong place to invest in, some investors, and in particular first time investors, are unsure of the best way to invest their money. With different property types and locations to choose from, it is no surprise that some investors aren’t quite sure where to start. We have put together this short guide to help investors to understand more about property investment in Manchester, helping you to make your own informed decisions.
Student Property vs Residential Property
One of the biggest decisions that you will have to make when looking to invest is the type of property that you wish to invest in. Two of the strongest performing and most common investment property types are student property and residential property, both of which have their benefits and are known for their strong market performance.
Student Property – With three major universities and more than 100,000 students, Manchester is a student hotspot that has one of the biggest higher education populations in Europe. Students from all around the world enjoy the fantastic education at the universities, coupled with the culture and the nightlife that the city has to offer, giving them a fantastic student experience. This is fantastic news for investors, with a huge and growing number of students meaning that there is a constant demand for student property, something that investors can provide and benefit from. As well as this, as there is large interest from students across the globe, international students head to Manchester willing to pay high rents for higher quality accommodation.
Student property currently achieves some of the highest rental yields in Britain, whilst Manchester is ranked inside the top 20 cities for highest average rental yields in the UK, making the city a much better student property investment location than most other UK cities. Student property also has added benefits of no council tax or stamp duty tax, as well as the use of management companies, meaning that this hands-off form of investment can be very profitable for investors.
Residential Property – Following big regenerations and investment, Manchester has become a very diverse place, with young professionals flocking to the area to be a part of the new-look UK business hub that is Manchester. As well as this, much of the student population make the decision to stay in Manchester, adding to the number of qualified professionals that the city is home to. Big businesses, including ITV and the BBC have relocated to the city, and there are a number of restaurants, bars, clubs and cafes, as well as the large Trafford Centre for residents to enjoy. All of this combined with the desire to find their dream job in Manchester means that there is a constant need for residential accommodation.
The good news for investors is that there is a big undersupply of housing in Manchester, one that is constantly fighting a losing battle of the rising population. Investors are able to make their investments in the knowledge that there is a demand for their property, as well as the potential for very strong rental yields. When compared to London’s high purchase prices and good percentage yields, Manchester’s low initial purchase prices make for a better investment opportunity. As UK house prices are expected to surge in the near future, and the fact that Manchester is a city on the rise, those investing now are sure to reap the most rewards.
Manchester’s Best Buy-to-Let Areas
Many areas throughout Manchester are performing better than ever, presenting investors with the chance to prosper from high percentage yields, as well as relatively low purchase prices, especially when compared to other UK cities. Some of Manchester’s best buy-to-let areas include:
Manchester City Centre – Although the city centre is associated with lower percentage yields when compared to other areas of the city, it does offer investors the chance to implement different investment strategies. Serviced apartments and flip projects are popular amongst investors investing in the city centre, providing investors with a different variety of benefits than they may be used to.
Salford – A fantastic Manchester location just a few minutes’ walk away from the city centre, Salford is fantastic for people that are looking to rent property in Manchester. The area achieves strong rental yields and is a place that has great potential in the long term.
Tameside – Located in East Manchester, Tameside has a varied portfolio of property types and achieves fantastic rental yields. Properties in the area aren’t expensive in comparison, and with a strong tenant profile, Tameside could be a fantastic area to invest in.
Author Bio
Hopwood House are specialists in buy-to-let investment, with a large portfolio of residential and student properties throughout the UK including property investments in Manchester, Liverpool and Sheffield.
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Daniel Peacock