Everything you need to know about investment properties in Manchester

Manchester could be considered one of the best places in the UK to invest in property. Property prices have risen over the last years in Manchester city centre and Greater Manchester in General.

As an up and coming city, Manchester offers massive potential for investors looking to buy property. Many new developments have gone up in recent years, with more planned for the future.

We guide you through the scene and inform you what property investment Manchester has to offer.

Manchester property prices square foot

There are typically cheaper prices per square foot than other big cities like London, meaning properties can offer good value for money.

Ancoats: The greatest success story in Manchester?

Ancoats is the classic success story of regeneration in Manchester. Once famous for its industrial mills and successful workers, Ancoats became one of the poorest parts of the city before becoming a conservation area in 2009.

With improved transport links and excellent connections to the rest of Manchester, prices here are seeing some real growth. Mechanic’s Institutes – thought to be Europe’s first public libraries – remain on Cross Street with further redevelopment also planned for this area.

Manchester boasts some of the most exciting property investment opportunities in the UK, with both residential and commercial areas experiencing massive growth in recent years.

With Manchester’s population rising, rental properties are in high demand. City centre apartments get snapped up fairly quickly, and there’s often is a long list of potential renters.

If you’re looking for investment opportunities, you should take a look at property investment in Manchester.

ancoats investment

Students and graduates

Manchester currently has 105000 graduates enrolled on higher education programmes there. So it leads to many young people looking for properties in City Centre.

Private rental accommodation is in constantly high demand in Manchester, particularly in the private sector.

Multiple student institutions

Manchester Metropolitan College and University of Manchester Metropolitan University of Manchester are located. There are also large numbers of graduate school students.

Excellent transport links throughout Manchester and the north west.

Manchester is a goodly connected borough to the UK by way of public transport. Manchester City Council has just announced plans to completely replace Piccadilly station.

The council described the ambitious development as the “once in a century opportunity” for Great Manchester and the North.

Transport: Manchester city centre and beyond

People in Manchester often travel from and within Manchester city centre and other suburbs, and Manchester airport is the 22nd busiest in Europe and the largest outside London. The Metrolink tram system consists of seven lines connecting Altrincham Ashton-under-Lyne to Bury East Didsbury Eccles and Rochdale.

The train from Manchester to London can take about two hours, and there are plans to increase the train network via HS2/HS2 High-Speed Train that will bring together the city centres: London, Birmingham, Leeds and Manchester.

Will Manchester be a property investment hotspot in 2022?

2022 should provide significant opportunities for investment, and a good variety are available in the UK property market and Manchester. Prices could rise by 5% next year, with solid expansion expected in the Northern regions compared to the South and London, which makes property investment.

Business relocation to Manchester

The salaries and operating costs for Manchester are less than London. This means that organisations with back-office functions receive world-class quality at a lower price.

They employ nearly 250,000 members of staff within many specialities. This highly skilled workforce consists of accountancy, insurance taxation, HR and legal specialists who help firms in Manchester find and retain the staff they need.

Is Manchester the best place to be a landlord?

Recent GoCompare rankings Manchester as the top place in the UK for renting. The study evaluated factors such as average property price, average yield, population over 35, number of properties available and number of rental/executive offices.

Manchester offers some of the best rental yields across the UK.

Some sectors have achieved yields as high as 12% but this is by no means a common rental yield.

There are 332,000 under 35s living in the city, and more people get attracted there as the range of jobs and diversity increases.

Rental demand in Manchester is high from graduates, and young professionals and people relocated from London.

Manchester Buy to Let Property Market investment opportunities

Manchester saw a rise in landlords due to an under-supply of apartments. In 2000 buying-to-let investors benefited from a nearly 10% return.

This increase in demand for suitable accommodation has created numerous investment opportunities, especially in Manchester.

A fast-growing population

The Manchester population is one of the youngest in the country, with 52% aged between 24 and 30. There are forecasts the area will grow by 125,000 by 2025. It also benefits from a large community of student population, with roughly 20,000 deciding on living in the city each year.

City centre populations are forecast to grow to 600,000 by 2025, with the local authority and homeowners pressure to keep up with demand for homes. Manchester annually has many graduates to stay after graduation, and 60% of its population is 0-30 years old.

A future-proofed economy

MediaCityUK works collaboratively with established companies and creative entrepreneurs. The life science and medical sectors remain highly efficient in service given the steady stream of young, highly knowledgeable people gaining their degrees from local university networks.

By 2026 70,000 new jobs will be projected. The broadcaster moved its operation to Manchester, and the financial and professional services industry are booming. The region’s leading public companies are also in the UK, including the BBC.

Manchester Connectivity

Manchester Airport Transformation Programme aims to develop the airport and holds 10.8 million additional passengers before 2025. Works have also been started on the new GBP350m, a 6-stop metro line linking Trafford and the rest of the city.

The new high-speed rail 2 (HS2) network will arrive in 2033, the New High Rate Rail 2 network said. The travelling time from Manchester to London will be closer to one hour, and Manchester Airport plans to increase its airport facilities.

Salford

Salford is a significant employment centre that makes an essential contribution to the Greater Manchester economy. Around 9,500 businesses employ over 127,000 workers. The municipal unemployment rate fell significantly to 6.6% in June 2018 due to this industry.

This area has one of the first operating 5G networks in the UK and concentrates on the banking and professional services alongside the creative and media sectors.

So it is sure to attract more business and professionals to the area, further enhancing the area’s ease of living, work and play. ‘ Its potential is still limited and is undergoing a considerable transformation from an operational standpoint.

Salford Regeneration

The area of Salford Quays has seen a considerable degree of regeneration, adding new homes, new offices and new leisure facilities. It is one of the most significant development projects in the UK, placing 25th among the 100 most significant regeneration projects.

It is an ambitious regeneration initiative worth around £13 million. It is the largest – UK’s highest ranking development project at 25 among 100. In addition, it has a few residences and offices.

Why should I invest in Manchester property?

Manchester investment properties can be a good way to obtain a substantial return for your investment. Manchester attracts investors for purchase due to high yields, capital growth, and increased rental demand experienced in the past 20 years.

Manchester: The best city to live in

Manchester has been named as one of Manchester’s best London cities in The Global Liveability Survey. The award-winning museums, galleries, theatres, and its year-round calendar all provide great reasons.

The National Trust has country parks at Dunham Massey, Tatton Park, and Lyme Park in Stockport, where the famous Mr Darcy scenes were filmed for the BBC’s Pride and Prejudice. Saddleworth Moor and Pennine Way provide great opportunities to ramblers too.

A lifestyle city

Manchester was selected as the most sought after UK city for the Global Liveability Ranking 2015. The city is a perfect town for any resident and visitor, and it is considered the most desirable place in the United Kingdom by Liveability International. Manchester is the ideal place to spend your weekend in the countryside.

Manchester investment opportunities

Manchester was initially considered an unusual decision for investors in the buy to let market, with many opting for London due to its high growth potential and good yield. Sometime later, savvy people have found out the golden lining of London’s trading platform does not give the same returns.

The UK has and ever has a supply problem, but the demand is currently declining with people moving out of the city and living closer for the sake of good quality. The issue has opened London up again to poor and, in some cases, negative growth reducing the yield rate and not being the ideal investment environment for intelligent investors.

Rents have grown across Manchester by 30% in the past. Local towns such as Salford Trafford, Bolton and Stockport saw a rent increase from 11% to 20%. Manchester’s economy is worth around £56 million. Cultured and bursting with festivals, clubs and shops.

The UK’s average house prices vs Manchester

The UK’s average house price currently stands at £220,000. In contrast, the average property in Manchester costs around £161,000, meaning that investors have plenty of opportunities when it comes to picking up houses below market value before they increase in value over time.

Buying houses to let out may be popular, but one of the most profitable ways to invest in Manchester is to purchase a commercial property. Many options are available with high rental yields and capital growth, whether you buy retail units to let out to retailers or office buildings ready for conversion.

Regeneration in Manchester

Over the last years has seen it grow into a thriving and cosmopolitan city, with an ever-increasing demand for investment properties.

As part of the Northern Powerhouse initiative, there are plans to invest billions into new technology and infrastructure – setting Manchester up as a leader in transport and digital industries.

The city is seeing continued significant regeneration over the next decade. The aim is to create sustainable communities with housing that meet everyone’s needs, including affordable homes across the city centre, Newtown, Hulme, Ancoats & Clayton, and other vital locations right across Greater Manchester.

This focus on affordable homes means that investors can find high returns on their investments.

Spinningfields

Over the last years, Spinningfields has been dramatically transformed. It’s a thriving new urban quarter, with an abundance of riverside bars, restaurants and cafes all set around the iconic Spinningfields Square.

With over 400 businesses now trading from this award-winning destination, including fashion brands such as DKNY, Jimmy Choo and Michael Kors, to global financial giants such as UBS and HSBC – it is now regarded as one of Manchester City Centre’s premier office locations.

The Northern Quarter (N4)

One of the city’s oldest parts, The Northern Quarter, is also known for its cultural diversity and creative arts scene that attracts many young creatives to live and work here.

Due to its hipster following, independent retailers have thrived here.

Ancoats

Located north of the city centre, this area is trendy for first-time buyers and small developers. Although historically an industrial heartland, Ancoats has been transformed into one of the most vibrant areas in Manchester – with many new developments taking place.

Some locations have become hugely exclusive through popularity among young professionals – such as New Islington was built on a demolished gasworks.

City Centre

The city centre population keeps rising with tends to be where business people tend to live and work, due to its connectivity to transport links – making it a hub for office space and investment opportunities. The shopping here is also trendy, especially along the Deansgate stretch. There are over 70 high street brands, including John Lewis and Debenhams.

Manchester city centre property stats
  • Average property price: £256 759 ( according to Rightmove)
  • Average rental yield: 5.11% (according to Zoopla)
  • Average rent: £1,094
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