Manchester Named the Best UK City for Buy-to-Let Investment

Manchester Takes the Crown for Buy-to-Let Investors

According to Aldermore’s latest Buy-to-Let City Tracker, Manchester has been named the best city for property investment in the UK. The ranking is based on key factors such as rental yields, property price growth, and tenant demand. Despite high rents, London has dropped significantly in the rankings, making way for northern cities to dominate the buy-to-let market.

Why Manchester is the Best Buy-to-Let Location

Manchester continues to attract property investors thanks to its strong annual house price growth of 6.5%, one of the highest in the UK. This means landlords not only benefit from consistent rental income but also from increasing property values over time.

Additionally, 32% of Manchester’s population are private renters, well above the national average of 23%, ensuring steady demand for rental properties.

Surprise Performer: Wigan Climbs the Ranks

A major shift in this year’s rankings is Wigan’s jump to fourth place, climbing from 25th last year. This is largely due to its low vacancy rate of just 0.6% and steady 5.4% annual property price growth. Investors looking for reliable rental income with minimal void periods are turning their attention to Wigan as a safer long-term bet.

London’s Decline in Buy-to-Let Rankings

Despite maintaining some of the highest rental prices in the UK (£800 per room on average), London has dropped from 5th place in 2023 to 32nd in 2024. The capital’s low rental yields (4%) and slower house price growth (3%) have made it less attractive for investors looking for higher returns.

Buy-to-Let Market Remains Strong in 2024

Despite economic challenges, the UK buy-to-let market continues to perform well, with:
✅ 18% increase in average rent per room (£455 in 2023 vs. £518 in 2024)
✅ Rental yields rising from 5.5% in 2023 to 6.9% in 2024
✅ Landlord confidence growing, with only 31% considering leaving the market compared to 48% last year
✅ 58% of landlords seeing property value increases in the past 12 months

Wales Still Struggling for Buy-to-Let Investment

Newport and Swansea remain at the bottom of the rankings, with limited rental demand and slower property growth. However, there have been signs of improvement, with rental yields in Swansea increasing from 4.7% in 2023 to 6.3% in 2024.

Final Thoughts: Buy-to-Let Still Offers Strong Returns

While the buy-to-let market is evolving, investors who adapt to shifting regulations and tenant expectations can still find lucrative opportunities. Cities like Manchester, Wigan, and Glasgow are emerging as top choices, while London investors may need to reassess their strategies.

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