There are a lot of different asset classes out there that suit 100k investment budgets, but property is, without a doubt, one of the strongest. This is because, compared to other types of investments like stocks and shares or ISAs, property investment is capable of offering returns in two ways:
Rental income – Those who invest in buy to let property will generate regular returns in the form of rental income paid by their tenant.
Capital appreciation – As a property’s value grows over time, those that exit their property investment at the right time can sell it for a higher price. This is also referred to as capital growth returns.
The stock market is also more high-risk than the real estate market. That’s why those seeking information on how to invest 100k or less will often settle on a more physical asset like property and avoid higher-risk strategies.
During uncertain times, in particular, the property market stays resilient and offers a better sense of stability. Throughout the Covid-19 pandemic, many investors exited their stocks and shares investments and purchased property instead.
As a result of the increased demand seen throughout 2020, property prices reached record highs at the end of the year and are predicted to continue growing. By 2024, UK house prices are set to have increased by 20.4%, even more so in specific regions.
Contents
- Why invest in Manchester?
- A Student City Like No Other
- Transport and Amenities
- Regeneration Hotspot
- Best Buy to Let Areas in Manchester
- 2021 Predictions- how will property investment Manchester change?
- Manchester Investment Property for Sale
Manchester Investment Property For Sale
Why Invest in Manchester?
So, why invest in Manchester?
The truth is that buy to let Manchester property is perhaps the best investment you can possibly make in the UK.
Few cities can even compete with the level of growth property in Manchester has seen over the past two decades.
It is the leader of the pack, alongside fellow North-Western city Liverpool, in almost every conceivable 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.
House Price Growth
Over the past 20 years, prices for property in Manchester have grown at a tremendous rate.
According to the latest data from property portal Zoopla, average house prices have increased in value in the city by over 230%.
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 by 212%. What about Birmingham? Well, house prices here increased by 182%. Sheffield? 209%. Leeds? 198%.
There’s a noticeable trend here. Manchester growth levels have far exceeded any close competitor in the housing market by a significant margin. Only London and Sheffield come reasonably close, and still not close enough, making property in Manchester a clear choice for investors.
The average buy to let Manchester property is valued at around £239,413. This is a great price point for investment, and it still sits comfortably below the UK average, which exceeded the £250,000 mark for the first time in history in late 2020.
Plus, if you use the services of property investment companies in 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.
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 £910,000. 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.
Also, property in Manchester has the highest predicted growth compared to any other region in the UK.
Prices in the North West are said to increase by 27.3% by 2024, according to Savills. That’s 7% higher than the UK average. London, on the other hand, sits at only 12.7%.
Rental Prices and Rental Yields
It’s not just house prices that are increasing for buy to let Manchester property though. Rental values are also rising.
The average rent currently sits at around £1,141, according to Zoopla. The UK average is about £979, demonstrating a sizeable lead by Manchester.
With the current rental figures and house prices, the average rental yield sits at around the 5.7% mark for Manchester buy to let. Conversely, the national average is approximately 4.5%.
For beginners, rental yield is the return on your investment you will earn through rent. Anything between 5 or 6% is considered good, with Manchester buy to let sitting at the end of this spectrum.
So, What Does All This Data Mean?
As a buy to let investor, you will earn two forms of income, both through rent and capital appreciation.
Capital appreciation refers to the growth in house price. Ideally, you will want to own a property, rent it for many years, and then sell it for a considerable profit.
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 as a buy to let investor, you will earn sizeable income in both aspects.
Moreover, these figures are just the average. You can make even better deals depending on where you look.
The luxury set of waterfront apartments, Merchant’s Wharf, for instance, is 55% below market value and has returns of up to 6.5%!
There has never been a better time to invest in rental property Manchester.
Increasing Rental demand
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 here 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. The city centre population has grown faster than the national average and now has well over half a million residents in Manchester – an increase of almost 28% since 1991.
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 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.
With average house prices increasing at massive rates (prices increased in 2020 at their highest level since 2004) many young people simply cannot afford to buy their own homes. As an alternative, they are forced to rent, which is good news for property owners.
In a June 2020 survey, Savills found that half of those who responded would seek to rent 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 the North though. Manchester universities have a global reputation as a hub of excellence.
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 greater number still choose to stay and work in the area.
Manchester currently has the second-highest graduate retention rate in the UK, sitting at a staggering 51.5% – 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 Manchester property investment, 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 residential 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 (which will be discussed later), the city offers fantastic amenities making the city 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 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 links are set to improve even further still with the introduction of HS2.
There are several HS2 affected postcodes in the city. 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 respectively. This is a considerable time saver as travelling to the West Midlands takes around 88 minutes, with London services currently 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.
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.
Spinningfields
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 and since then 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.
MediaCityUK
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.
Noma
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, 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 prime locations.
Manchester City Centre
Average Property Asking Price: £262,245
Average Rental Yield: 5%
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 houses for sale in Manchester city centre
Investment property in Manchester city centre starts, on average, from just £187,261 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 for a staggering 143% more.
Apartments to buy in Manchester city centre also come equipped with above-average yields of 5.4%.
If you are looking for houses for sale in Manchester city centre, these can be a little more expensive, with property values around £262,245. Again, though, these offer a fantastic deal, with London prices 247% higher.
Yields are decent, too, at around 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.
If you want the best property available, you should consider our exciting off-market special with prices starting from just £265,000.
Salford
Average Property Asking Price: £216,732
Average Rental Yield: 5.2%
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 215% in the last 20 years, with prices still more affordable than the city centre.
If you’re looking for flats to buy in Manchester, Salford offers one-bedroom apartments from just £163,990.
This puts the average rental yield at around 5.6%.
On the other hand, houses are only slightly more expensive, with the average property in Salford sitting at around £216,732. Yields on these properties are only slightly lower at about 5.2%
Of course, you can get a property for far cheaper than this. By investing through property investment companies, Manchester properties can be exceedingly affordable.
Property investment companies with Manchester properties like RWinvest offer developments like Merchant’s Wharf at 55% below market value, with yields of up to 6.5%.
Fallowfield
Average Property Asking Price: £174,280
Average Rental Yield: 10.9%
If you’re looking for top investment property Manchester, then Fallowfield is an excellent choice.
The Manchester suburb is a trendy student area and boasts some impressive rental yields.
With property prices increasing here by almost 230% over the past 20 years, and 51% in the last 10, Fallowfield is a fantastic choice if you want to buy property in Manchester.
Currently, the average property price on Zoopla sits at around £174,280. With average rent valued at approximately £1,595, you can earn incredible yields of almost 11%.
Due to its popularity amongst students, there are tonnes of available properties here, creating 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 below £100,000, offering incredible value for those evaluating their options and considering if they should buy property in Manchester.
Trafford
Average Property Asking Price: £190,609
Average Rental Yield: 5.2%
Another affordable option when looking to buy property in Manchester, 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 here are valued at around £190,609, with rental yields in the region of 5.2% 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
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 finally went through 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 March 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. 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 27% by 2024. 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.
Property to Buy in 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.
If you want to find apartments to buy in Manchester city centre or are interested in investment properties in Manchester in general, we have you covered.
Here, we have a whole host of houses for sale in Manchester city centre, and beyond, at unbelievable prices. With a luxury waterfront apartment available and prices starting from only £149,950, our Manchester investment property can’t be beaten on price.
Alternatively, we other fantastic properties available across the UK housing market. Featuring residential property and student properties in top UK cities, you can find some of the best deals on the market with us.