Manchester is a city that has been attracting property investors for many years, and it's easy to see why. With a growing economy and increasing demand for housing, the city offers excellent opportunities for those looking to invest in property.
One area of the market that has seen steady growth in recent years is student accommodation. As one of the larger student cities in Europe, Manchester provides a constant stream of tenants for those investing in this sector. The demand for high-quality, purpose-built student accommodation continues to rise, making it an attractive investment opportunity.
Investment in Manchester's property market is supported by its robust infrastructure. The city boasts excellent transport links, including an international airport and an extensive rail network. Attractions such as museums, theatres and galleries make it an attractive location for residents and visitors.
Alesco Investment Property Ltd is a reputable company offering a range of investment opportunities for those looking to invest in Manchester's property market. Their expertise allows investors to take advantage of the potential capital appreciation and stable source of income through rental yields that come with investing in residential or commercial properties.
Why You Should Consider Property Investing in Manchester
Manchester is a city that has been experiencing fast growth in recent years, and this trend shows no signs of slowing down. As a result, there are various reasons why you should consider investing in property in Manchester. In this section, we will look closely at some of the critical factors that make Manchester an attractive location for property investment.
Booming Property Market
One of the main drivers to invest in property in Manchester is the booming property market. There is a huge demand for properties in the city, making it an attractive investment opportunity. This demand is driven by a growing population and strong economy, which make Manchester a stable location for property investment.
Manchester is a popular area for UK and foreign property investors, with a thriving rental market, affordable property prices, and high rental demand.
Manchester has been ranked as the 6th best place for landlords to achieve a positive ROI in the UK.
Rental prices in Manchester are set to grow by nearly 16.5% over the post-COVID period.
Current rental yields in Manchester are between 6-7%, depending on the number of rooms in the property- Source: https://www.propertymarketintel.com/property-research/by-area/manchester
According to Ernst & Young, Manchester's economy will see annual growth of 2.4% over the next five years.
By 2026, Manchester's GVA is expected to be £2 billion larger than in 2022
Affordable Property Prices
Another reason to consider investing in property in Manchester is its affordable prices compared to other major UK cities. This offers excellent potential for capital growth as prices are expected to rise over time due to ongoing development projects and increasing demand.
Steady Rental Income
Investing in buy-to-let properties can provide a steady stream of rental income due to the city's high student population and young professional workforce. With many universities located within or near the city centre, there is always a high demand for student accommodation. Additionally, with many large companies having headquarters or offices based here, young professionals also require quality rental accommodation.
Historical City with Iconic Landmarks
Owning a property in Manchester means owning a piece of history as the city is home to many iconic landmarks and cultural attractions such as Old Trafford Stadium (home of Manchester United Football Club), The Lowry Theatre and Gallery, The National Football Museum, The Science & Industry Museum and more! These landmarks attract tourism from all over the world who visit them throughout the year.
Regeneration Projects
With ongoing regeneration projects and development plans across various areas of the city, including Ancoats Urban Village; NOMA; St John's Quarter; Circle Square; Mayfield Depot; New Islington Marina and more, investing in Manchester property could now lead to significant returns in the future. The city is constantly evolving, and these projects are set to transform the face of Manchester.
Best Regions for Property Investment in Manchester
Manchester has a rich history and culture, and it has become one of the famous cities in the UK for property investment. The city offers diverse investment opportunities, including residential, commercial, and industrial properties. This section will discuss the best regions for property investment in Manchester.
Best Areas for Property Investment in Manchester
Salford
Salford is located west of Manchester city centre and is home to Salford Quays. It is a popular area for property investment due to its waterfront location and proximity to MediaCityUK. Salford Quays has undergone significant regeneration over the past few years, making it an attractive site for investors.
The area offers residential and commercial properties, with many new developments being built in recent years. The rental market in Salford is strong, with high demand from young professionals who work in MediaCityUK or Manchester city centre.
Ancoats
Ancoats is an up-and-coming area located just east of Manchester city centre. It was once known as "Little Italy" due to its large Italian community but has since become a trendy neighbourhood with a growing demand for rental properties.
The area has undergone significant regeneration over the past few years, with many old mills being converted into apartments. Ancoats also boasts some of Manchester's best independent bars and restaurants, making it an attractive location for young professionals.
Northern Quarter
The Northern Quarter is another up-and-coming area just north of Manchester city centre. It is known for its nightlife scene and independent shops and cafes.
The area has seen growth in recent years, with many new developments built to meet the growing demand from young professionals who want to live close to the city centre.
Manchester's City Region Offers Diverse Range of Investment Opportunities
Manchester's city region offers diverse investment opportunities, including residential, commercial, and industrial properties. The city is home to many corporations, such as BBC and Co-op, which have their headquarters in Manchester.
The North West Region Has Experienced Significant Economic Growth
The North West region, where Manchester is located, has experienced economic growth in recent years. This growth has been driven by various factors, including the development of transport infrastructure and the evolution of critical industries such as digital and creative.
The development of Manchester's transport infrastructure has increased accessibility to many of the city's best areas for property investment. The expansion of the Metrolink tram network has made it easier for people to travel around the city and access critical locations.
Cheapest Manchester Investment Property in Suburbs like Levenshulme and Newton Heath
Levenshulme and Newton Heath are two Manchester suburbs offering some of the city's cheapest investment properties. Despite their affordability, these areas have steadily increased property prices, making them a potentially lucrative investment opportunity.
Levenshulme is known for its vibrant community and diverse population. It has become increasingly popular with young professionals attracted to its lively atmosphere and affordable housing options. The area has a lot of amenities, including shops, cafes, bars, and restaurants. Several parks and green spaces are nearby, making it an attractive location for families.
Newton Heath is home to the famous football club Manchester United. It has a strong community spirit and is known for its friendly locals. The area has recently regenerated, with new housing developments and improved transport links to the city centre.
Levenshulme and Newton Heath have good transport links to the city centre, with regular bus and train services available. This makes them ideal locations for commuters who work in Manchester but want to live outside the city centre.
Investors looking for buy-to-let properties may find that rental yields in these suburbs are higher than in more expensive areas of Manchester. Because property prices are lower, investors can achieve higher investment rental yields.
Doing thorough research before investing in any property, including those in Levenshulme and Newton Heath, is essential. Investors should seek professional advice from a reputable estate agent or financial advisor who can guide market trends, rental demand, and potential returns on investment.
One example of an affordable investment property in Levenshulme is a two-bedroom terraced house priced at £150k. The property requires some renovation work but has potential as a buy-to-let investment due to its location within walking distance of amenities and transport links.
Another example of an affordable investment property in Newton Heath is a three-bedroom semi-detached house priced at £170k. The home has been recently refurbished and has a large garden and off-street parking. It is located close to local schools, shops, and transport.
According to recent statistics, the average property price in Levenshulme is around £190k, while in Newton Heath, it is around £160k. This makes both areas significantly cheaper than more expensive neighbourhoods such as Didsbury or Chorlton.
Despite their affordability, both Levenshulme and Newton Heath have seen significant growth in property prices over the past few years. This suggests they are becoming increasingly popular, attracting buyers and investors to their affordable housing options and good transport links.
Salford and Stockport: Cheaper and Expensive Parts of Greater Manchester
There are a few key areas that investors should consider. Salford and Stockport are two such areas, each with unique characteristics and price points.
Salford Quays is one of the most expensive areas in Greater Manchester, with an average property price of around £250,000. This area has undergone significant regeneration in recent years, with the development of MediaCityUK bringing new businesses and residents to the site. The waterfront location and proximity to Manchester city centre make Salford Quays an attractive option for those seeking a high-end property investment opportunity.
On the other hand, Oldham is one of the cheapest areas in Greater Manchester, with an average property price of around £140,000. While Oldham may not have the same level of investment as some other areas in Greater Manchester, it does offer affordable properties for those looking to get on the property investment ladder or invest without breaking the bank.
Trafford is another popular area for property investment, with a wide range of properties available at varying prices. From luxury apartments overlooking the water at Salford Quays to more affordable family homes in Altrincham or Sale, Trafford offers something for everyone.
But there are many factors that investors should consider beyond just price. Location is vital - properties near good transport links or local amenities tend to be more desirable and command higher prices. It's also important to consider upcoming developments or regeneration projects impacting property values in certain areas.
For example, Alesco is a property investment company that offers a range of investment opportunities in Greater Manchester, including in Salford and Stockport. Alesco's developments often focus on up-and-coming areas with growth potential. For example, their Salford development is located in the Chapel Street regeneration area, which has seen significant investment in recent years.
Depending on the specific area and type of property, there can be a wide range. For example, while Salford Quays may have an average property price of £250,000, this can vary depending on factors such as the size of the property or whether it has a waterfront view.
Similarly, Stockport offers a variety of different options for investors. The town centre has undergone significant regeneration in recent years and now boasts a range of new developments and amenities. However, there are also more affordable areas within Stockport - for example, Edgeley or Cheadle Heath - that offer good value for money.
Importance of Location in Property Investment and Why Manchester is Desirable
Location is a crucial factor in property investment, as it can determine the potential for capital growth and rental yields. When investing in property, it's essential to consider the location carefully. A good location can make all the difference in achieving high returns on investment.
Manchester is desirable for property investment due to its strong economy, growing population, and thriving rental market. The city has experienced growth over the past few years, with many businesses choosing to relocate there due to its strategic location in the heart of the UK.
The city's diverse range of neighbourhoods offers a variety of investment opportunities, from up-and-coming areas to established hotspots. Each community has a unique character and appeal, making it easy for investors to find properties that match their specific needs and preferences.
One of Manchester's key strengths is its transport links. The city is easily accessible from other major cities such as London and Liverpool via road or rail. This makes it an attractive place for businesses and investors looking for a central location with excellent connectivity.
In addition to its strong economy and transport links, Manchester boasts a thriving rental market. With a growing population and increasing demand for affordable housing, there are plenty of opportunities for investors looking to buy to let in the city.
The ongoing regeneration projects in Manchester are set to further enhance its appeal as a prime location for property investment. The Northern Gateway project aims to create 15,000 new homes over the next 20 years, while St John's development will see the creation of new office spaces, retail units, and residential properties.
Investing in property in Manchester can provide a stable long-term investment with the potential for high returns. With a shortage of affordable homes in the city, there is always likely to be demand from renters looking for quality accommodation at reasonable prices.
According to recent statistics by Zoopla (2021), Manchester was named one of Britain's top ten cities for buy-to-let investors. The report highlighted the city's solid rental yields, low vacancy, and high demand for rental properties.
Economic and Population Growth in Manchester
Manchester is the largest city in the Northern Powerhouse, an initiative to boost economic growth in northern England. The Greater Manchester area has experienced significant population growth in recent years, with an increase of over 6% between 2011 and 2019. This might be due to several factors, including increased job opportunities, improved transport links, and a thriving cultural scene.
Manchester's economy has been expanding rapidly, with a growth rate of 3.4% in 2018, outpacing the average of 1.4% in the UK. Various sectors, including finance, digital technology, and advanced manufacturing, have driven this growth. The city's reputation as an innovation hub and it's creativity has also attracted investment from global companies such as Amazon and Google.
House price growth in Manchester has been strong, with an increase of 4.7% in the last year alone, and rental growth has also been robust. This trend can be down to several factors, including high demand from young professionals and students seeking affordable accommodation near the city centre.
The city's student population has been a critical driver of demand in the property market, with over 100,000 students enrolled in universities across Manchester. The presence of world-class institutions such as The University of Manchester and Manchester Metropolitan University has helped to establish the city as one of Europe's leading student destinations.
Bolton, located within the Greater Manchester area, has seen robust capital growth in recent years due to its proximity to Manchester and economic expansion. With excellent transport links to both Manchester city centre and other major northern cities such as Liverpool and Leeds, Bolton is becoming an increasingly attractive place for businesses looking to establish themselves outside of London.
Manchester's market is expected to continue growing in the coming years, with further population and economic expansion forecasted. As one of Britain's critical industrial cities, Manchester has a history of innovation and entrepreneurship that is likely to continue driving growth in the region.
Regeneration Projects in Manchester City Centre
Manchester City Centre is undergoing a significant regeneration plan as part of the Northern Powerhouse initiative. The city has been investing heavily in infrastructure, transport, and housing to attract businesses and young professionals to the area. The regeneration projects aim to make Manchester a more attractive place to live and work, creating new jobs and economic opportunities for the local community.
Regeneration Plan
The regeneration plan for Manchester City Centre is one of the most exciting and elaborate projects in the UK. It aims to transform the city into a vibrant business, innovation, and culture hub. The project includes several key areas: transport links, housing developments, green spaces, and cultural venues.
One of the main objectives of the regeneration plan is to create a sustainable future for Manchester by reducing carbon emissions and improving air quality. The city has set ambitious targets to become carbon neutral by 2038, requiring significant investment in renewable energy sources and sustainable transport.
Regeneration Projects
The regeneration projects in Manchester City Centre include several significant developments such as New Islington, Oxford Road Corridor, Deansgate Square, MediaCityUK, and St John's Quarter. These projects are expected to bring substantial economic benefits to the city by creating new jobs and attracting businesses.
New Islington is a mixed-use development with residential properties and commercial spaces such as cafes and shops. The product aims to create a vibrant community with access to green spaces and public amenities.
Oxford Road Corridor is another significant development that aims to improve transport links between Manchester City Centre and other parts of Greater Manchester. The project includes new cycle lanes, pedestrian walkways, bus routes, tram stops, and train stations.
Deansgate Square is a luxury residential development with four towers and over 1,500 apartments. The product offers stunning views across Manchester City Centre and provides residents access to high-end amenities such as swimming pools, gyms, and private gardens.
MediaCityUK is a significant media hub that includes the BBC's northern headquarters, ITV studios, and several other media companies. The development has created thousands of jobs in the creative industries and helped establish Manchester as a leading media and digital innovation centre.
St John's Quarter is a mixed-use development with residential properties and commercial spaces such as restaurants, cafes, and shops. The product aims to create a vibrant community with access to green spaces and public amenities.
Economic Benefits
The regeneration projects in Manchester City Centre are expected to provide significant economic benefits to the city by creating new jobs and attracting businesses. Manchester is one of the fastest-growing places in the UK and has been compared to London regarding its economic growth and development.
The city has a business community with several major corporations in Manchester City Centre, such as Co-op Group, AO World, PZ Cussons, and many more. The regeneration projects aim to attract new businesses by providing high-quality office space, transport links, and access to skilled workers.
Average Yield for Properties in Manchester
Manchester has been a thriving city, increasing over the past decade. It is no surprise that property investors are turning their attention to this city, as it offers some of the best rental yields in the UK. This section will discuss the average work for properties in Manchester and why investing in property here can provide a good return on investment.
Average Rental Yield
The average rental yield for properties in Manchester is 6.8%, higher than the national average of 4%. This means that if you invest £100,000 in a property in Manchester, you can expect to receive an annual rental income of £6,800. This figure is based on the average house price and rental income for properties across the city.
Average Property Price
The average property price in Manchester is £173,381, significantly lower than in other major cities such as London or Edinburgh. This makes it an attractive location for property investors looking to enter the market at a lower price point.
High Rental Yields
While the average rental yield across Manchester is 6.8%, areas have higher products. For example, Salford has an average yield of 7.2%, while Hulme has an impressive work of 7.4%. These high-yielding areas offer great potential for investors looking to maximise their returns.
One-Bedroom vs Two-Bedroom Properties
It's worth noting that different types of properties will have varying yields. For example, one-bedroom properties have an average yield of 7.5%, while two-bedroom properties have an average yield of 6.5%. Investors should consider this when deciding which property type to invest in.
Rental Increases
Rents across Manchester have steadily increased over recent years, with an average increase of 3.5% in the last year alone. This is good news for property investors, as rental yields will likely continue rising.
Return on Investment
Investing in property in Manchester can provide a good return on investment, especially compared to other major cities across the UK. With high rental yields and steady rental increases, investors can expect to see a healthy return on their investment over time.
Transport Connectivity in Manchester: Trains, Metrolink Tram, and Bus Network
Manchester has a well-connected transport network, with quick links to surrounding areas via train, tram, and bus services. The city's public transport system is one of the most extensive in the UK, making it easy for residents and visitors to get around.
In this section, we will explore the different modes of public transport available in Manchester.
The Metrolink tram system is a popular mode of public transport in Manchester, providing easy access to the city centre and surrounding areas. The network covers over 60 miles and has 99 stops across seven lines. It operates from early morning until late at night, making it convenient for commuters and those enjoying the nightlife.
One of the advantages of using the Metrolink tram is that it offers fast and reliable service. Trams run every few minutes during peak times, ensuring passengers can reach their destination quickly. Additionally, trams are environmentally friendly as they produce lower emissions than other forms of public transport.
Manchester Airport is easily accessible via the Metrolink tram and rail links, making it a convenient hub for travel within the UK and abroad. The airport has a dedicated station on the Metrolink network, providing direct access to terminals 1 & 3. Passengers travelling to Terminal 2 can take a free shuttle from Terminal 1 & 3 station.
Train travel is another option for those looking to get around Manchester quickly. Several rail stations are located throughout the city centre, including Piccadilly Station, which offers direct trains to London, taking just over two hours.
The HS2 high-speed rail link will further improve transport connectivity by reducing journey times between Manchester and London. This new infrastructure project will provide new opportunities for investment and development in both cities.
The city's bus network also offers an affordable way to travel around Manchester. Over 50 bus routes are operational, covering the city centre and surrounding areas. Additionally, several night bus services operate until the early hours of the day.
One of the benefits of using buses is that they provide a more flexible service than other forms of public transport. Passengers can hop on and off at different stops along the route, making exploring different parts of the city easy.
The transport network offers easy access to student accommodation areas like Bury and Media City. Students can use their university ID card for free on certain bus services during term time, making it an affordable option for those studying in Manchester.
A guide to Manchester's transport links can help investors identify areas with good transport connectivity, which can be an essential factor in property investment decisions. Properties close to transport links have higher rental yields and capital growth potential.
Critical Points for Property Investment in Manchester
Property investment is a great way to build wealth and secure your financial future. With the right investment strategy, you can earn passive income through rental properties, benefit from capital appreciation, and diversify your portfolio. Manchester should be on your list if you're considering investing in property. Here are some key points to consider:
Manchester's Property Market is Booming
Manchester's property market has been booming for years, with house prices rising steadily and demand for rental accommodation increasing. The city has become a hub for young professionals, students, and families looking for suitable value property that offers easy access to amenities and transport links.
Location is Key
Location is everything. Manchester offers various desirable locations catering to different needs and budgets. There's something for everyone, from trendy city centre apartments to suburban family homes.
Regeneration Projects are Transforming the City
Manchester is undergoing significant regeneration projects transforming the cityscape and attracting more people to live and work here. These projects include the £1 billion NOMA development in the city centre and the MediaCityUK development in Salford Quays.
Transport Connectivity is Excellent
Manchester boasts excellent transport connectivity with an extensive network of trains, Metrolink trams, and buses connecting all parts of the city and neighbouring towns and cities.
Rental Properties Offer High Yields
Investing in rental properties can offer high yields in Manchester due to strong tenant demand and rising rents. The average result for properties in Manchester is around 6%, higher than many other UK cities.
