Manchester – UK Buy-to-Let Property Investment Hot Spot

Manchester features in HSBC’s top four buy-to-let hot spots for its high rental yields at an average of 7.6% and affordable property prices.

Manchester’s average house prices have increased by 22.82% over the past 5 years with 27.3% forecast regional house price growth in the 5 years to 2024 (Savills).

Manchester has one of the fastest growing populations with 149% increase in its population (2002-2015) and is the 3rd largest Metropolitan area in the UK. Greater Manchester has the largest student population in Europe with over 100,000 students.

The Greater Manchester economy is the third largest regional economy in the UK worth £66.4 billion.  Manchester has been completely transformed over the past few decades attracting significant public and private investment with further regeneration programmes underway.

Manchester is a major city within the Northern Powerhouse with excellent potential for rental and capital appreciation, fuelled by the city’s regeneration programmes, student population, connectivity, and high quality of living, which combined with its affordability has made Manchester a buy to let property investment hot spot.

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Strong Rental Demand in Manchester

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Forecast rental growth for Manchester is 16.5% over the next 5 years (JLL).

Manchester boats both the highest forecast property value growth and rental price growth of any UK city over the next 5 years (JLL).

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Manchester Increasing Property Prices

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Manchester has seen average house price growth of 22.82% over the past 5 years (Zoopla). Industry experts, Savills, have forecast house price growth of 27.3% for the North West region in the 5 year period to 2024, outpacing the UK’s average price growth forecast of 2.2% per annum.

HSBC have placed Manchester in their top four buy-to-let property hot spots due to the average rental yield of 7.6% and affordable house prices.

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Manchester Regeneration

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Manchester is reaping the benefits from large scale investment in regeneration schemes as part of the Northern Powerhouse initiative, increasing rental demand, rental growth and house prices.

Manchester’s property market will remain one of the UK’s strongest performing cities for the foreseeable future.

• NOMA is the biggest development project in the whole of the North West of England and has seen the redevelopment of some of North Manchester’s most neglected areas with £800 million invested so far.
• Spinningfields is a £1.5 billion project that is a brand new area of the city designed to be Manchester’s “central business district” and is now home to  much of the city’s financial community, being transformed into the “Canary Wharf of the North”
• St John’s is a major £1 billion development, described as “Manchester’s newest city centre neighbourhood” on the outskirts of Spinningfields.
• MediaCityUK in Salford Quays in Greater Manchester, formerly a major industrial hub is one of the biggest regeneration projects and transformations, leaving the area unrecognisable being completely redeveloped to create a vibrant, modern area that is home to some of the UK’s biggest media names
• HS2 is a massive investment in transport infrastructure with London to Manchester Piccadilly taking just 1 hour 11 minutes, saving 54 minutes, expected support over 100,000 jobs

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Manchester Student Population

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Manchester has the largest student population in Europe, being home to over 100,000 students across five prominent universities.

• University of Manchester is a Russell Group university with almost 40,000 students
• Manchester Metropolitan University is one of the largest universities in the UK with over 34,000 students
• University of Salford features a campus at MediaCityUK with 19,000 students
• University of Bolton ranks 1st for student satisfaction in the North West with 11,000 students
• University Academy 92 is a brand new university co-founded by Lancaster University and the members of the Class of 92 football players

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Manchester Economic Growth

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Manchester is a major player in the government’s Northern Powerhouse initiative, with regeneration, improved infrastructure and connectivity with London, providing a major boost for its economy.

Greater Manchester is the third largest regional economy in the UK, comprising of key employers with annual Gross Value Added (GVA) of £66.4 billion.

Large companies including the BBC, Amazon, Freshfields, Microsoft, AstraZeneca, Siemens, Ericsson Google, Kellogg’s, Barclays, Royal Bank of Scotland to name a few have relocated of opened up offices in Manchester to reduce their costs, which is called “North Shoring” , opening up huge employment opportunities for Manchester’s population.

Manchester is home to the largest purpose-built media location in Europe, MediaCityUK, being home to major broadcasters including the BBC and ITV.

Manchester’s new central business district, Spinningfields, is home to much of the city’s financial community and is known as the “Canary Wharf of the North” with big name tenants including PWC, Deloitte, HSBC and Barclays basing their operations there.

It is no surprise that Manchester has seen 84% growth in jobs (1998-2015), the fastest growing in the UK, followed closely by Leeds, Birmingham and Liverpool (Centre for Cities).

Regency Invest have a range of below market value Manchester buy-to-let property investments with high returns.

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