In the world of property investment, making the right move can be pivotal. With the UK property market undergoing a shift, London’s once gleaming status has dimmed due to skyrocketing prices and receding rental profits. However, a new contender has emerged – Manchester, now often dubbed the ‘Capital of the North’. With its buy-to-let potential and affordability, the Manchester city centre has been drawing the attention of shrewd investors. Delve into why Manchester investment property is the intelligent choice in this insightful blog post.
Understanding the Transition: Why Manchester?
For a prolonged period, London has been the heart of property investment in the UK. However, with mounting concerns over affordability, investors are diverting their attention towards other prospects. Cue Manchester: a city characterised by its thriving culture, robust economy, and flourishing property market.
Manchester investment property provides tremendous potential for both seasoned and novice investors, offering rental yields nearly twice as much as London. What are the factors contributing to this astounding shift?
According to Invest in Manchester, Manchester represents the largest city region economy outside London, boasting a Gross Value Added (GVA) of £78.8 billion.
Manchester’s Magnetic Appeal
The allure of Manchester as an investment destination stems from its unique amalgamation of affordability, growth potential, and a booming property sector. The city has witnessed remarkable economic advancement, spurred by extensive regeneration endeavours and infrastructure investments, leading to an upsurge in demand for quality rental properties, particularly from young professionals and students.
High Demand and Promising Rental Yield
The heightened demand for rental properties, incorporating student investment property, adds to Manchester’s enticing average rental yield. With an expanding city centre populace, Manchester is a Northern city that should not be disregarded by investors. The city showcases formidable property values and house price growth, positioning it as one of the UK’s leading cities for prospective returns.
Manchester’s Property Industry: On the Rise
Manchester’s property market is witnessing notable growth, with Zoopla indicating year-on-year growth across the Manchester investment property market of over 8%. The growth in rental price in Manchester is also commendable, with sturdy tenant demand guaranteeing a consistent rental income for investors. Manchester’s property market is projected to maintain this upward trajectory, with rental price growth expected to be around 3% in 2023.
Solid Opportunities for Capital Appreciation
Further, Manchester investment property holds firm prospects for capital appreciation, powered by the city’s ongoing magnetism for both domestic and global investors. Manchester presents a prime arena for those seeking long-term growth and robust returns on their investment.
Lower Property Prices, Higher Returns
A key advantage of investing in Manchester is its relative affordability compared to London. This cost-effectiveness presents investors with an opportunity to enter the market at a more feasible price point, which could allow for potentially high returns on investment.
Diversified Property Portfolio: Lucrative Prospects
This significant price disparity offers fertile opportunities for investors to construct a varied property portfolio in Manchester. By diversifying their assets, investors can enhance their return on investment while minimising potential risks.
Expanding Portfolio with Manchester’s Competitive Edge
For instance, the capital one would need to secure a single property in London could be used to acquire multiple assets in Manchester. This broadens the investor’s portfolio and enhances potential rental income. The modest initial investment, combined with the city’s robust rental profits, assures a quicker and more considerable return on investment. This competitive advantage distinguishes Manchester in the UK property market, making it an irresistible option for any discerning property investor.
Capital Gains and Rental Income Growth
Investing in Manchester’s property offers the potential for both capital gains and rental income growth. With its promising investment principles and a favourable market outlook, Manchester remains an attractive destination for those looking to tap into the opportunities provided by the buy-to-let property sector.
Students and Young Professionals: A Vital Part of Manchester
Manchester is more than just a city; it is a knowledge hub, home to renowned academic institutions like the University of Manchester and Manchester Metropolitan University. This sizable student population creates a strong demand for conveniently located and quality accommodation, making it an attractive market for real estate investment.
Manchester is a city teeming with life, due mainly to its young and dynamic population. The city is particularly appealing to students and young professionals who are attracted to its thriving education sector and vibrant job market.
According to Statista, approximately 498,127 students were attending schools in Greater Manchester for the 2022/23 academic year, compared to 493,050 in the previous year and 455,763 in 2015/16. This growing student population, which includes a substantial number of international students, contributes to the city’s dynamic environment and directly influences the demand for rental properties.
In conclusion, there’s never been a better time to invest in Manchester. It offers a landscape of opportunities for both capital appreciation and high rental income. With its thriving economy, significant student population, and steady property demand, Manchester truly is the rising star of property investment.
Are you considering Manchester investment property?
Let Reloc8 Em point you on the right path to maximising potential returns. Make the smart move today.