Manchester is the UK’s third-largest city and is among its fastest-growing. Despite the current challenges globally, the Manchester property market continues to boom. Both homebuyers and property investors are now looking to Manchester for their next property purchase.
A year ago, buyers were looking to more rural areas, with the pandemic news on the horizon and stay-at-home orders in place. The trend for buyers has shifted to more urban areas, and Manchester’s property market is standing out as a current hot spot in the UK. It offers strong returns for investors in the form of both long-term capital growth and strong rental yields.
Let’s talk numbers
Recent statistics shows that Manchester’s rental yields average 5.37%, compared with 2.83% in London. The reason? Manchester offers more affordable property options, but there is consistent tenant demand. Now is an ideal time to invest in the Manchester property market, as it is forecasted to have the highest sales price (17.1%) and rental growth (16.5%) of any UK city over the next five years. Similarly, home buyers are drawn here because they get more for their money while still enjoying urban amenities.
Manchester city centre is a draw, and renters are willing to pay a premium to live there. Latest figures also show that one-bedroom apartments in the city have risen by 24% in the last five years. What is the draw? Companies such as Amazon, BBC, and Kellogg’s have offices there, drawing talent in the fields of research, manufacturing, engineering, and digital technology. A large part of the expanding population is under the age of 35. Many of these new citizens were students — Manchester has 100,000 students attending universities across the city, and the graduate retention rate is high, which means more future renters.
Why is Manchester so desirable?
Manchester has been voted the UK’s most liveable city for the past ten years in The Economist’s Global Liveability Index, which measures factors including environment, healthcare, education, culture and infrastructure. Manchester also has the highest Build to Rent cluster of skyscrapers outside of London. These properties cater to tenants through a range of amenities, and residents are willing to pay a premium.
The future looks even brighter
By 2032, the new High-Speed 2 (HS2) will cut travel times from Manchester to London down to just 68 minutes, making it within commuting distance, which will help to increase residential property prices. In addition, in 2023, a new ‘super terminal’ at Manchester International airport will create 40,000 new jobs while further improving domestic and international connectivity.
Manchester is a liveable city with much to offer, coupled with a thriving job market and many opportunities for growth. It proves an excellent place to invest for both home buyers and property investors alike.