Investors looking for high yields and above average capital growth will immediately be drawn to London’s notoriously complex but highly lucrative property market. But, as recent figures show, the UK’s second largest city, Manchester, could be set to become the next best destination for those looking to expand their portfolios.
A rising market
According to Zoopla, the average price of property in Manchester has increased by 12% since January 2014 compared to a comparatively slow rise of 8.2% in the capital. But according to Property Week, prices are set to rise 22.2% in the next three years, fuelling record interest in Manchester’s properties from domestic and international investors.
Why invest in Manchester?
A strengthened local economy is said to be one of the largest contributing factors to Manchester’s rising property prices, although the Government’s pledge to invest £7 billion into the city’s development in the next five years is encouraging renewed confidence in the region’s property market.
This newfound curiosity in Manchester’s buy-to-let property has also been powered by the city’s growing digital industry. Various cutting edge developments have been introduced to cater for digital companies, such as MediaCityUK; a waterfront housing and leisure complex with “digital creativity, learning and leisure at its heart”. The development is in Salford, an area that now plays host to the new BBC studios and that was in fact tipped as the UK’s buy-to-let hotspot in 2014 by HSBC.
This pocket of the North is also experiencing unprecedented population growth – over 128,000 people are expected to move into the area in the next 10 years, and property developers are competing to satisfy this new demand for housing, particularly in up-and-coming areas like Salford, which has received £650 million worth of investment to date and is set to grow by 10.1% by 2020.
Residential properties aside, there’s an increasing need for student accommodation in Greater Manchester. The city boasts several world-class universities and is an attractive home away from home for those who want to study in a thriving, cosmopolitan city with a unique urban culture. With an influx of students comes a higher demand for high spec student developments, many of which are funded privately by shrewd investors.
Choosing the right property
There’s a lot of potential here, but if you want to buy to let in Manchester, you need to choose your investment property wisely. Contact the management team at Surrenden Invest to learn more about our exclusive off market Manchester based investment properties.