Guide To Investing In Manchester 2019
Manchester has become one of the main contenders in terms on Property Investment areas in our opinion. Not only does Manchester present you with great Investment deals, but it also has the fastest improving economy outside of London.
With a rapidly growing economy comes more Jobs, increase in rental demand and development opportunities. The evidence is there just from looking into Manchester skyline and seeing the amount of cranes. Manchester has experienced the highest percentage population growth outside London, with an increase of 19% to over 500,000. Not only that but the population is projected to reach 532,200 by 2021.
Investing in Manchester
As mentioned above Manchester has a booming economy which is becoming a hub for young entrepreneurs and start ups also Well established multinational businesses such as WE-WORK. Also home to two of the biggest football clubs in the world Manchester United and Manchester City , As well as Media outlets such as ITV and the BBC located in media City we see Manchester thriving for many years to come making it a no brainier for property investors of all different strategies.
The North West is well know for providing well respected yields when it comes to investing in properties due to the low cost of entry for properties in comparison to the southern region. One of the downsides Investors have faced in the past when investing up north in cities such as Manchester is the myth of the slower rate of capital growth. New evidence as now shown that Manchester has the leading capital growth rate than anywhere else in the country with it being as high as 7.7% Annually compared to that in London of 0.8%. Its clear that these myths are something of the past.
Manchester is home to four universities and has a student population of over 100,000. Property Investors who are not adopting a student tenant strategy may see data like this as irrelevant, However, we feel it is vital when investing in Manchester. Recent statistics have shown that Manchester keeps more students than it takes in every semester, Due to graduates keeping it as their main residence once they have finished university.
Getting around Manchester has improved drastically over the years with the improvement of the Metrolink, Similar to London's Overground. Manchester's governing bodies are still see room for improvement and have created a five year "Metrolink transport development plan" for Manchester and the surrounding areas, with this development, it could be up there with London. Towns such as Wigan, Stockport, Glossop are also rumoured to have direct tram lines running into the city centre although not confirmed.
Investing Outside The City
As mentioned above in the next few years we may see the introduction of new metrolink lines running to and from the city into Towns in Greater Manchester. This will open up a new world of opportunity for Investors looking for High yielding properties. Not only are we seeing improvements to the transport system in fringe Towns, But also economic shifts with areas such as Stockport seeing its Town centre receive funding for regeneration and similar in Tameside.
What Areas Should I Consider?
Manchester City Centre -
Average expected Buy to let yields of 5.5%.
Lets start in the heart of Manchester, Investing in the city centre is more often that not going to be New build apartments or Self contained Flats. Choosing to invest more centrally in Manchester may not provide you with the best rental yields due to property prices generally being higher , It does present you with a broader range on Investment strategies to choose from, such as Serviced accommodation, Serviced offices etc. Although your cost of entry is going to be the highest out of most other areas listed, Your tenant profile is likely to be the strongest, with it prominently being that of professionals & wealthy foreign students/Professionals . Average expected Buy to let yields of 5.5%.
Average expected Buy to let Yields 7 %.
Tameside is an area which tends to be more under the radar to investors who are not familiar with Manchester. Investing in Tameside presents you with some great opportunities to achieve strong rental yields as well as long term tenants. It's easily accessible to Manchester via Metrolink or train and has big employers such as IKEA.
Average expected Buy to let Yields 6%.
One area of Manchester which has improved exponentially over the last 10 Years, with the introduction of Media City, which continues to see further Development. Similar to Tameside, Salford has a strong demand for rented accommodation from professionals and families alike. Commuting to the City centre can be done within 10-15 Minutes minutes depending on which region of salford you are located.
Average expected Buy to let Yields 7.5%
Warrington has some of the best transport links across the North West making it a dream for commuters travelling to the surrounding cities. The growth in Warrington is not going unnoticed either with the town seeing a recent £15 Million growth deal go through from the government, Which is set to attract an estimated £280 Million of private investment creating a whopping 250,000 Jobs.