Manchester is one of the most active property markets in the UK through its resilient economy, popularity with international visitors and strength in attracting direct investment. A wealth of world-class investment opportunities is prevalent throughout the city and Manchester continues to outperform the average UK house prices.
A Strong Investor Base
Manchester benefits from a strong investor market, with over 52% of the entire housing stock lying in the Private Rented Sector. Considering the historically high rates of house price inflation in both Manchester and Salford, initial rental yields remain strong at present prices, averaging 5.3% for both areas.
This resilience is a clear indication of underlying strong tenant demand as rates of rental inflation come near to keeping pace with house price growth. For those seeking investment opportunities beyond London, Manchester and Salford offer a breadth of choice for healthy returns. RW Invest provide a wealth of buy-to-let student and residential accommodation opportunities located across Manchester offering places to live for students and business professionals who wish to take advantage of Manchester’s diverse offerings.
Manchester holds a place in the top 25 areas of buy-let-let yields at position 14 with an average rental yield of 8.25% in Salford. Manchester’s rental yields have witnessed a period of exponential growth throughout recent years and the four universities placed around the city provide optimistic opportunities for landlords who are willing to invest in student accommodation.
The Original Business City
Manchester was the world’s first modern industrial city and the birthplace of the industrial revolution; its economy remains strong and unhindered with no signs of slowing down.
Over 200 years on, Manchester is reshaping itself on a global scale and presents itself as a city at the forefront of digital, tech and culture – helping to establish the well-connected, innovative city that is recognised by many today.
Manchester has invested heavily in its infrastructure over the last 20 years and with the second largest economy in Britain these huge investments have helped meet the increasing demands from multiple factors around the city placing Manchester firmly on the map for regeneration.
Modern buildings, high spec developments and a multitude of tall office blocks are visible around the city. Due to the rising number of structural developments the transport infrastructure has been transformed to expand the Metrolink tram network.
Manchester is set to become one of the world’s top digital cities by 2020 due to its thriving digital and tech sectors. The city excels in digital technologies, backed up by innovative developments such as MediaCityUK. The city’s ambition alongside its heritage and ground-breaking developments makes Manchester the ideal spot for property investment.
A City Full of Talent
Four universities containing 99,000 students in total are situated around Manchester. The city glorifies its intellectual and cultural capital which helps the graduate retention rate stay so high, presenting itself as one of the few places in the UK that attracts and retains a growing graduate workforce, ensuring the workforce is sustainable.
Students stay in Manchester due to its successful economic base where small start-up companies seem unfazed by the larger, more established blue-chip companies that accelerate and drive innovation.
Manchester is rated as Europe’s top city for business competitiveness. The cost of running a business in Manchester can be as much as 40% cheaper compared to London. Similarly, salaries are also typically 30-40% less than London and the cost of buying or leasing office space is also significantly lower. Together this makes Manchester the ideal place to establish and grow a UK presence.
A Well – Connected City
The region’s connectivity makes it an attractive place for investors.
Manchester is home to the UKs largest regional international airport connecting over 27 million passengers to over 200 destinations, serving more cities than London Heathrow. As well as extensive links through the air, Manchester helps the city stay connected through vast road and rail services. Three trains run to London hourly in just under two hours proving the ease of connection to the capital presenting an ideal choice for any business looking for a European HQ.
Centrally located on a map of the UK, Manchester serves 60% of all UK consumers within a two-hour drive to its centre. It is no surprise that the city has the largest commuter area in the UK outside of London with a workforce of 7.2 million people living within 50 miles of the city centre.
Manchester city centre has one of the most profitable residential markets in the UK in terms of rental growth and price which has prompted a considerable increase in development activity with international investors and UK institutions hustling for position on key large-scale sites.
In a period of awaiting the new supply to be completed, the residential demand will outweigh available supply. Manchester hints to a continued strength of the residential sector in the Northern Powerhouse region by offering some of the best returns in the UK and leading the way in the build-to-rent market. The capital value growth of the city is expected to reach 28.2% over the next five years due to the accumulating supply and demand, whilst rental prices are forecast to increase by 20.5% over the same period.