Manchester Property Investment

If you’ve ever considered buying property, chances are Manchester property investment has crossed your mind.

Putting the Great in Greater Manchester, this prime city is perhaps the worst kept secret of the investment world. 

While Manchester has had a rough past, particularly struggling economically in the 1980s with the fall of traditional manufacturing, it has gone on to become a world-class destination in the UK property market. 

Manchester property investment has reached incomparable heights thanks to massive growth over the past two decades. If you want to invest somewhere, this is the place to do it.

But why has all this growth happened? Why is Manchester property investment the definitive property hotspot?

If you’re looking for answers to all these questions and more, you’ve come to the right place. 

In this guide from ELEMENT Developments, we will outline why you should invest in Manchester and discuss some of the hottest flats to buy in Manchester.

Why Invest in Manchester?

So, why invest in Manchester? 

The truth is that buy to let Manchester property is one of the best investments in property you can make in the UK in 2021.

Few cities can even compete with the level of growth rental property Manchester has seen over the past two decades.

More investors than ever are opting for Manchester property investment, and there’s plenty of reasons for this.

The city is one on the rise. Over £1.6bn has been pumped into the region from the Northern Powerhouse initiative alone, with plenty of regeneration efforts dotted across the metropolis.

With further infrastructure advancement like a new HS2 line set to be developed over the coming years and more people being attracted to live in the city, house prices and the Manchester buy to let market have continued to grow and thrive.

It is the leader of the pack, alongside Liverpool property investment, in almost every measurable way.

From economic strength, house price growth, rental yields, rental prices, rental demand, and affordability, you’re going to be hard-pressed to find a city even close to what the Northern Powerhouse offers. 

But these are all just words, right?  Let’s use some statistics to back up these claims.

A good tip for investing in property is to invest in an area where people want to live in, and a big contributor to a city’s attraction is its prices – an aspect where Manchester excels.

According to the latest UK House Price Index figures, the average property in Manchester costs around £205,067 in early 2021.

While this price is 12.12% higher than a year prior, the value is still incredibly affordable.

For context, the average UK property is over £44,000 more expensive.

Compare these prices to London, and you can start to understand why around 13% of people are leaving the capital to move up North.

London house prices sit at around £781,788. Coupling this with the high living costs, and it becomes apparent that investing in the city would require some massive pockets with limited scope for growth. 

To get a five-bedroom house in the capital, you would need to spend almost £2 million. Manchester, comparatively, offers similar property for 75% less, with the average London property almost four times the price of a Manchester property.

This is a big gulf in price and highlights just how good value for money Manchester buy to let is.

Affordability isn’t just prevalent in house prices, either. The cost of living is also incredibly affordable.

According to Numbeo, consumer prices excluding rent in Manchester are around 15% lower than in London. When you factor in rent, prices are about 31.8% lower than the capital.

Prices in Manchester are slightly higher than nearby Liverpool, with a 5% difference, but the cost of living remains incredibly affordable.

Plus, when you factor in rent and rental yields, you realise just how enticing property investment Manchester is.

Based on Zoopla’s latest rental data, you can expect to earn an average of around £1,096 per month through rent, or £13,152 per year on a single property investment Manchester.

This means that rental yields in the city are around 6.41%.

Rental yield is widely considered the most important statistic for property investors. It shows the return on an investment you will earn through rent.

Usually, anything between 5 and 6% is considered good, highlighting just how well property investment Manchester is performing.

These yields are not only good but are also vastly outperforming other UK cities.

In fact, rental yields in Manchester are higher than London (4.03%), Birmingham (5.61%), Leeds (6.20%) and Liverpool (6.39%). It’s also comfortably above the UK average of 4.44%.

With these statistics in mind, you will be hard-pressed to find a UK city with such high rental yields.

Over the past 20 years, prices for property in Manchester have grown at a tremendous rate.

Historically, the buy to let Manchester market has seen capital growth unrivalled by any other major UK city.

Over the last 20 years, buy to let Manchester property prices have increased by a whopping 369%. This means if you purchased a property in early 2001 and sold it in 2021, you would earn an average profit of around £161,000.

That’s a significant number out of context, but when you compare it to other cities, this growth level is even more impressive.

London, for instance, has increased in value since 2001 by just 175%. What about Birmingham? Well, house prices here increased by 210%. Leeds? 234%. Sheffield? 252%.

There’s a noticeable trend here. Manchester growth levels have far exceeded any close competitor in the housing market by a significant margin. Only Sheffield comes reasonably close and still not close enough, making buy to let property Manchester a clear choice for investors.

While the average price of properties in Manchester is slightly higher than cities like Sheffield and Birmingham, it’s still comfortably below the UK average while also boasting some of the highest yields in the country.

Plus, if you use the services of property investment companies Manchester to get discounts, or go down the off-plan route, all of a sudden flats to buy in Manchester are some of the cheapest around.

Even in recent years, Manchester has consistently outperformed the UK average.

2020 was a critical year for property investment. The UK average surpassed the £250,000 mark for the first time ever and increased at the highest level since 2004.

Despite this, investment property Manchester showed even higher growth levels.

Over the course of 2020, the UK average increased by 7.98%. For comparison, buy to let property Manchester saw costs rise by 9.36%.

It’s clear buy to let Manchester has dominated the property market for past growth, but it is also leading the UK for the highest predicted growth rates in the UK.

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Along with the Liverpool property market, Manchester and the North West region are set to have the largest capital growth in the UK.

According to the latest Savills house price forecast, North West prices are set to increase by 28.8% by 2025.

That’s 7.7% higher than the UK average and over double that of London’s prediction.

The closest competitor to the North West is another northern region, Yorkshire and The Humber, which is predicted to see house prices rise by 28.2%.

Take a look at the full prediction list by Savills.

As you can see, the North West leads the charge for growth over the next five years.

In 2021 alone, prices in the region are set to increase by 4.5%. Naturally, this is only an estimate, with the potential for even higher growth.

If 2020 taught investors anything, the market can be incredibly unpredictable and surpass growth predictions by a considerable margin.

But it’s not just house prices that are set to rise over the coming years. UK rent is also on the up.

According to Savills, UK rental growth is set to hit 17.0% by 2025. This growth mirrors the expected rise in income, with income rising by 17.3% over the same period.

So, what does all this data mean?

With Manchester house prices far more affordable than other cities, while also boasting massive growth rates and higher than average rental values, it means that you will earn sizeable income in both rent and capital appreciation as a buy to let Manchester investor.

Moreover, these figures are just the average. You can make even better deals depending on where you look, such as with property investment companies Manchester.

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These fantastic statistics would be pretty pointless if the demand for property in the city wasn’t high.

Thankfully, there appears to be more demand for rental property Manchester than anywhere in the country.

In late 2020, a report from property portal Zoopla found that the current ratio between available rental supply versus rental demand stood at a staggering 1:5.

This has made rental property Manchester more in demand than ever.

It’s understandable why this ratio is so high, as Manchester has an ever-expanding city centre population.

In 2019, around 2,835,686 people lived in Greater Manchester, which is an increase of over 280,000 in the last 30 years.

This data from the Office for National Statistics is even more substantial in Manchester city centre. The city centre population has grown faster than the national average. There are now well over half a million residents in Manchester – an increase of almost 28% since 1991.

This massive city centre population has had a distinct impact on property for sale in Manchester city centre, with prices rising considerably over the years.

These increases are caused by many factors.

With vast economic strength and plenty of opportunities for young professionals, life in Manchester is an incredible prospect. 

The city currently has the largest economy outside of London and has grown twice as fast as the capital since 2004.

This means the population is likely to continue increasing over the coming years, with the latest predictions estimating a rise of 10% by 2034.

Therefore, it’s expected that this demand for rental property Manchester will only continue to grow.

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A Student City Like No Other

A large part of the increasing population figures can be strongly linked to the rise in students living in Manchester.

As a buy to let property Manchester investor, students and young professionals are likely the most exciting demographic to target.

This is because of “generation rent.”

Here, many young people simply cannot afford to buy their own homes anymore due to hiking houses prices.

As an alternative, they are forced to rent, which is good news for those looking to invest and buy property in Manchester.

Alongside the Liverpool property market, Manchester has one of the busiest student property sectors in the UK.

In a June 2020 survey, Savills found that half of those who responded would look at renting if they could not find a property in six months.

Half of those still said they would do so happily, perhaps suggesting a broader trend that people choose to rent as part of a lifestyle choice.

Manchester currently boasts the largest student population in Europe, with current figures suggesting a population surpassing the 100,000 mark. 

It isn’t just domestic students that are flocking to the North, though. Manchester universities have a global reputation.

This reputation has attracted over 10,000 international students to the University of Manchester alone. In fact, around one in eight students in Manchester are Chinese.

Many students flock to the Northern Powerhouse, but a more significant number choose to stay and work in the area. 

Manchester currently has the second-highest graduate retention rate in the UK, sitting at a staggering 51% – second only to London.

That means over half of those graduating from the city choose to live and work in the city limits.

These numbers are great for those interested in property investment Manchester, as it gives investors more choice on what Manchester buy to let property they choose to buy.

Manchester property investors can either invest in student accommodation and student property investment or traditional Manchester city centre property, which offer some of the best prices and highest yields available on the market.

Excellent Transport Links and Amenities

Due to the high population, property investment Manchester offers some of the best opportunities on the market. But why do so many people flock to the city?

Besides the massive employment opportunities caused by a wealth of regeneration, the city offers fantastic amenities making it one of the best places to live.

With a nightlife scene to rival any in the UK, Manchester offers residents an unrivalled range of restaurants, bars, and leisure attractions. 

As well as featuring one of the most iconic shopping centres in England with the Trafford Centre, the city also provides some of the biggest cultural events in the North West.

The Northern city hosts events like Parklife Festival, Manchester International Festival, and The Warehouse Project, attracting thousands of visitors each year. 

It’s unsurprising to hear then that Manchester was voted the best UK city to live in, according to the Global Liveability Survey. 

But it’s not just the amenities that make Manchester special. It also has some of the best infrastructures with excellent transport links.

Boasting access to two major train stations in Manchester Piccadilly and Manchester Oxford Road, getting in and out of the city is exceptionally easy.

And for those travelling locally to reach their jobs, or just to meet up with friends, the city-wide Manchester Metrolink is perfect.

The tram network has around 99 stops across 65 miles of tracks, making it the most extensive light rail system in the UK.

These transport links are set to improve even further still with the introduction of HS2.

There are several HS2 affected postcodes in the city, namely the Piccadilly area.

The High-speed rail system will cut travel times by massive levels for those travelling to and from Manchester.

With the new HS2 services from Manchester Piccadilly, travellers can now get to Birmingham and London in 40 and 67 minutes. This is a considerable time saver as travelling to the West Midlands currently takes around 88 minutes, with London services taking 127 minutes.

Greater Manchester has seen a 26% increase in rail traffic over the last decade, so these services in HS2 affected postcodes will greatly help the load placed on the transport systems.

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A Regeneration Hotspot

The mystery of why Manchester investment property has become such a tempting offer is down to the frankly staggering regeneration levels in the area.

Regeneration has far exceeded the billion-pound mark, with multiple billion-pound regeneration efforts dotted across the metropolis.

Here is a list of some of the most outstanding efforts the city has seen.

If you’re wondering why the population of aspiring professionals has increased so much, this regeneration zone is likely why.

Spinningfields is perhaps one of the most famous UK regeneration initiatives. Located in the heart of Manchester city centre, and valued at around £1.5 billion, Spinningfields is a world-class business hub. 

Home to over 150 top financial and commercial businesses, the area has since been dubbed the Canary Wharf of the North. 

The project saw the renovation of a decrepit college campus. Since then, it is now one of the best business quarters in the UK. 

Work has continued on the project still, with as recently as 2018, a new skyscraper was opened. It is the tallest office building in Manchester and stands impressively at 302ft high.

Businesses here are attracting thousands of young professionals, undoubtedly contributing to the rise of property investment Manchester.

Another exciting business-oriented regeneration zone, MediaCityUK in Salford Quays started construction in 2007 and is still being added to today.

Valued at well over £1 billion, MediaCityUK is built on run-down docklands in Salford Quays and has since attracted some of the media industry’s biggest names.

With major world-class organisations like BBC, ITV, and Kellogg’s all opening major operations in the area, more and more businesses each day are leaving London to work up North. 

The business hub has made property investment in Manchester and Salford a perfect proposition. The site also features the University of Salford, making student accommodation and student property investment another profitable venture.

The NOMA initiative has been another project that has helped transform Manchester city centre. 

Spanning 20-acres, the mixed-use zone represents another fantastic Manchester investment and connects Victoria station to the city centre. 

Around four million square feet of residential, hotel, office, retail, and leisure space has been created here, helping attract even more businesses to the Manchester area.

With so many projects designed to promote business activity, it’s plain to see why the population is rising. 

People need good quality jobs, and Manchester investment offers it in bucket loads. 

These city centre initiatives have made apartments to buy in Manchester city centre a hot topic, with the area offering some of the best prices and yields available. 

If you’re thinking of buying Manchester investment property for sale, the city centre is one of the best postcodes in Manchester to consider.

Best Buy to Let Areas in Manchester – Where to Find Manchester Investment Property for Sale

If you’re looking to buy property in Manchester and find top Manchester investment property for sale, this section is for you.

Here we will cover the absolute best areas for buy to let property Manchester offers. We will assess the best postcodes in Manchester using various factors, including property prices, growth statistics, and rental yields.

So, if you want to find property to buy in Manchester, you should consider the following best buy to let areas in Manchester.

Average Property Asking Price: £264,427 (Zoopla)

Average Rental Yield: 4.95%

Where better to invest than in the city centre? Manchester city centre offers an unquestionably fantastic opportunity and is one of the prime locations if you consider student or residential buy to let property in Manchester.

With a vast population, thousands of businesses, and excellent price growth, you can be sure to find huge demand for property for sale in Manchester city centre.

Flats for sale in Manchester city centre starts, on average, from just £183,255 for a one-bedroom flat. This means apartments to buy in Manchester city centre are far cheaper than in other cities. 

London, for instance, has one-bedroom flats on offer at a much higher price. In fact, London flats cost a staggering 72% more than flats for sale in Manchester city centre.

Apartments to buy in Manchester city centre also come equipped with huge yields of 5.76%.

If you are looking for two-bedroom houses for sale in Manchester city centre, these can be a little more expensive, with property values around £376,245, according to Zoopla. Again, though, these offer a fantastic deal when you compare with London prices, which are 61.46% higher. 

Overall, yields for Manchester city centre property are considerably above the UK average, sitting at just under 5%. 

Whether you choose to look for apartments to buy in Manchester city centre or opt for houses for sale in Manchester city centre, you can be sure to get an excellent deal.

Average Property Asking Price: £183,537 (UK House Price Index)

Average Rental Yield: 6.27%

Due to the area being home to MediaCityUK, Salford in Greater Manchester is one of the best locations for buy to let property Manchester offers.

Property values in Salford have increased by over 291% in the last 20 years, with prices still more affordable than in the city centre.

If you’re looking for flats in Manchester to buy, Salford offers one-bedroom apartments from just £162,761, according to Zoopla.

This puts the average rental yield at around 5.63% for one-bedroom flats.

On the other hand, houses are only slightly more expensive, with the average property in Salford sitting at around £183,537. This provides sizeable yields of almost 6.3%.

Average Property Asking Price: £176,664 (Zoopla)

Average Rental Yield: 10.27%

If you’re looking for top investment property Manchester or want to find cheap property in Manchester, then Fallowfield is an excellent choice.

The Manchester suburb is a trendy student area and boasts some incredible rental yields.

With property prices increasing here by over 210% since 2001, Fallowfield is a fantastic choice if you want to buy property in Manchester.

Currently, the average property price on Zoopla sits at around £176,664. With average rent valued at approximately £1,512, you can earn incredible yields of 10.27%.

Due to its popularity amongst students, there are tonnes of available properties here, such as flats in Manchester to buy. This has created a thriving local rental market.

When looking for apartments to buy in Manchester, you will likely not find any cheaper than this area.

The average one-bedroom flat can be purchased for £103,000, offering incredible value for those evaluating their options and considering if they should buy property in Manchester.

This makes Fallowfield one of the more affordable city locations. If you want cheap property in Manchester, or want to buy a flat in Manchester at a low price, this is the ideal location.

Average Property Asking Price: £188,192 (UK House Price Index)

Average Rental Yield: 5.56%

When looking to buy property in Manchester, the area of Old Trafford is an excellent choice.

Home to footballing giants Manchester United, Old Trafford is a historical suburb in the heart of Manchester.

The area has seen a wealth of regeneration through the fantastic Intu Trafford Centre and has since attracted many businesses and workers into the region.

Property prices in Old Trafford are valued at around £188,192, with rental yields in the region of 5.56% on average.

With these lower-than-average property prices and sizeable yields, Old Trafford Manchester properties are one of the best Manchester property investments you can make.

Explore Manchester Property Investment Hotspots

Manchester is a varied cityscape, with a number of popular destinations thousands call home.

To help you choose what type of locations and areas you may want to find property to buy in Manchester, let’s take a brief look at some of the most popular investment hotspots in the city.

Located in the south-west of the city, the historical area of Castlefield has been heavily developed over the years.

Filled with iconic period buildings, Castlefield was given a new lease of life, with many buildings developed and converted into homes and offices to match the demand of the area’s growing population.

Castlefield’s main convenience comes from its ideal location. It sits minutes away from the thriving city centre and is perfect for those who prefer commuting to work rather than living in the hustle and bustle of city-centre living. This commuting is easy, thanks to Manchester’s excellent tram and transport systems.

The area is more expensive than the city centre, with prices of around £324,948, according to Zoopla, but it still has high yields of 4.59%.

The flourishing and trendy Northern Quarter is quickly becoming one of the most popular destinations in Manchester thanks to its music and fashion scene.

Immensely popular with students and young professionals, the area features plenty of nightlife opportunities like quirky bars and clubs to choose from.

It’s not just bars and cafés that put the Northern Quarter on the map though, it’s also filled with business opportunities.

The area has a huge finance and creative centre, helping provide plenty of job prospects for young professionals.

In fact, one of the latest additions was Amazon, who opened a massive new corporate office in the iconic Hanover Building, with the capacity for 600 new jobs.

You can expect average house prices of around £221,031 in the area, according to Zoopla, with potential yields of 5.66%.

One of the most culturally diverse areas in Manchester, Ancoats is a burgeoning neighbourhood filled with an eclectic mix of cultures like Scandinavian eateries and Japanese teahouses.

The area was voted one of the best places to live in 2019 by The Times and has continued this reputation into 2020 and 2021.

Located near The Northern Quarter, Ancoats has seen a wealth of regeneration over the years, which has had a positive impact on the local property market.

Property prices here have increased by nearly 195% over the past 20 years and are now valued at just over £217,000 according to Zoopla.

You can expect to earn sizeable returns here of around 5.67%.

One for the future, Piccadilly is an iconic piece of Manchester that is set to see a huge amount of transformation in the coming years.

This is because Piccadilly will be the epicentre of Manchester’s HS2 development.

HS2, or High Speed 2, is a new railway system connecting major cities across the UK like never before.

It will mean those using the Manchester Piccadilly Station can get to London in just 67 minutes, a whole hour less than the previous time.

Prices here are around £224,715, with yields of around 5.44%.

These figures are expected to grow hugely over the coming years, as the area becomes a hotspot for commuters and professionals.

There’s strong evidence to suggest this, too. In Slough, a £14.8bn railway system called Crossrail increased local house prices by over 66%.

If you want to invest in the future potential of an area, Piccadilly might be a good location for savvy investors to consider.

Located nearby to both the University of Manchester and Manchester Metropolitan University, the Southern Gateaway is perfect for students.

The area is filled with striking modern architecture and developments, making it one of the more contemporary regions of the city.

This contemporary feel has spread to the infrastructure, with excellent transport links connecting to residents to destinations across the city. Notably, the Southern Gateway is just minutes away from Oxford Road and Canal Street- two thriving spots for students to visit.

If you’re looking to invest in student property, the Southern Gateway should be at the top of your list.

2021 Predictions- How Will Property Investment Manchester Change?

It is about to be a very significant year for the property market.

After Covid-19 struck in early 2020 and Brexit was finally implemented in 2021, the property market has seen a wealth of uncertainty over the past 12 months.

With many thinking the property market was doomed to fail because of these factors, it has been a great surprise to see just how strong the industry has grown.

Last year was a record-breaking one, with unbelievable market statistics prompting massive investment in the industry.

The fantastic Stamp Duty Land Tax Holiday has prompted investors from across the globe to invest in areas like Manchester, with promises of making huge savings up to £15,000. Stamp duty is paid when purchasing UK property, but thanks to the tax holiday, investors could save thousands.

But with the tax holiday ending in June 2021, and the impact of Brexit yet to be seen on UK property, what do the experts think will happen over the next 12 months?

Well, it’s good news for property investors and the UK property market.

While growth rates are likely to decrease after the unbelievable 2020, property prices are predicted to increase by around 4% in 2021, according to Rightmove and Savills. For comparison, property increased by about 7.3% in 2020.

When it comes to property investment in Manchester, you are likely to see similar positive growth.

Industry experts Savills believe prices in the North West will increase by over 28.8% by 2025. These are huge numbers, and it’s clear that there has never been a better time to make investments in property and invest in UK cities.

Invest With Top Property Investment Companies Manchester

We hope you’ve enjoyed our guide to Manchester property investment.

Manchester is a prime city with fantastic available properties in a thriving rental market.

Investing in UK property has never been better than it is now. Average house prices are rising at fantastic levels, making investments in property a perfect asset. 

Whether you want to buy property Manchester, or the North West as a whole, be sure to contact ELEMENT developments today.

We are an expert property company specialising in student and residential off plan property investment opportunities. We are also members of the Property Association in the UK.

We have a number of revolutionary eco investment opportunities available, with phase 4 of ELEMENT – The Quarter just launched.

Prices for ELEMENT properties start at just £99,950.

As an added bonus, for every unit sold in ELEMENT – The Quarter, we have committed to planting 100 trees in the Amazon Rainforest.

Don’t miss out on these fantastic investment opportunities today.

Expand your property portfolio today and find top property in a prime city-centre location with ELEMENT developments. 

Element

Manchester Property Investment

Why Invest in Manchester?

A Student City Like No Other

Excellent Transport Links and Amenities

A Regeneration Hotspot

Best Buy to Let Areas in Manchester – Where to Find Manchester Investment Property for Sale

Explore Manchester Property Investment Hotspots

2021 Predictions- How Will Property Investment Manchester Change?

Invest With Top Property Investment Companies Manchester

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