Manchester and the Northern Powerhouse – A hotbed for buy-to-let investment

Manchster-hotbed-for-buy-to-let-investments

Why savvy investors are piling into Manchester property

Recent research from two different sources confirms what our research and Hotspots Algorithm has been alerting our investors to for many months: the North West of England is a buy-to-let investor’s paradise. Demand for buy-to-let properties has soared here. Rental yields are among the best in the country. Capital growth is above average, too.

In this article, you’ll learn why other analyses are catching up with our own. You’ll discover why the cities in the North West of England are among the best places to invest in property UK – and which of these cities might be the best of a great bunch.

Demand for rental properties increases as rental yields remain strong.

Property investors in the North West haven’t been put off by higher stamp duties. They haven’t been dismayed by Brexit. The changes to mortgage interest tax relief haven’t dented enthusiasm. Mistoria Group has found that investor demand for buy-to-let properties here has soared by 38% during 2017.

The highest rental yields are found in the North West

Independently, TotallyMoney research has uncovered the highest yielding postcodes in the UK. They analysed more than 500,000 properties that were for sale or rent in October 2017. Many of the top postcodes are in the cities of the Northern Powerhouse. The cities of Liverpool and Manchester feature heavily in the top 25. None are in London.

Several postcodes in Manchester and Liverpool, Sheffield, Nottingham, and Leeds, are yielding more than 7.25%.

Why is the North West today’s buy-to-let investment star?

In a word, regeneration. In a second word, infrastructure.

The amount of investment currently taking place in the North West is unprecedented. Swathes of inner-city locations are being regenerated. Transport infrastructure is being modernised and upgraded. Thousands of new homes are being built to accommodate a rapidly growing population as thousands of new jobs are being created.

The Powerhouse 2050 report forecasts that the North of England is about to enter a boom period. It projects an increase of £100 billion in productivity in the area. Growth is likely to be centred on highly productive areas, including technology, digital, and energy. The report’s authors expect the region to lead the way in industrial digitisation and health data.

Importantly, the North West has (thus far) avoided any fallout from the vote for Brexit. The economy here isn’t just stable, it’s growing. Inward investment, business investment, and central and local government investment are all growing.

In summary, the North West offers property investors the ideal conditions for profitable medium and long-term investment. It appears to be steaming ahead of London and the South East. Properties are affordable. The quality of life is exceptional. Education establishments are excellent.

In the North West, Manchester is the shining star

Drilling down and looking more closely, Manchester could be the shining star of the North West. It is the country’s largest economy outside of London. It is leading the UK’s digital revolution, with productivity growth-boosting property investment returns. Big names like BBC, ITV Granada and MediaCity have made Salford a hugely successful digital hub.

Manchester is one of the UK’s fastest-growing cities and a magnet for young professionals. There’s a real buzz about the city. Its two major football teams currently sit at the top of the English Premier League. It is home to a world-class orchestra, a respected film industry, and a large and diverse range of industrial and professional sector businesses.

There has been a huge investment in the economy here. Hundreds of millions of pounds have poured into growing businesses, creating job opportunities, improving education, and expanding and bettering transport infrastructure – Manchester is becoming smarter and cleaner.

Over the last decade, the high tech, digital, health, and energy sectors have taken off in Manchester. The city is now considered as one of the places in Europe for entrepreneurs to start a business.

Manchester – the lifestyle city where people want to live

The young professionals flocking to Manchester are not simply drawn by its fast-growing, high-tech economy. It is one of the most cosmopolitan cities in Europe. It is home to world-class leisure facilities. Bars, bistros, restaurants and nightclubs make it the ideal destination for creative recreation. It has amazing shops and schools, perfect for growing families. Property here is affordable when compared to London and the South East. There isn’t very much not to like about Manchester, as a place to live, work, open a business, or simply to visit.

What type of property should you buy in Manchester?

Here’s another thing that is fantastic about Manchester – it offers opportunities for all property investors:

  • Manchester houses a huge (and growing) student population, with plenty of opportunities to invest in student accommodation.
  • Young professionals and downsizers provide a high demand for inner-city apartments.
  • Growing families are catered for by edge-of-town developments near transport links and countryside leisure facilities.

Manchester. Home to the country’s top Premier League football teams. Home to a thriving business and high-tech economy. Home to some of the biggest infrastructure and regeneration investment in the UK. Home to a huge student population.

With high rental yields and property price growth of around 7% in 2017, savvy property investors are making Manchester the home for their investment, too.

To discover some of the best off-plan opportunities in Manchester, contact one of the Gladfish team on +44 207 923 6100. Getting in early could help you to push your investment returns even higher.

Live with passion

Brett Alegre-Wood

About the Author

Brett has over 20 years experience in all facets of property, he owns various companies centred around property and is the driving force behind the education and training at Gladfish. His companies have sold over £850 million in UK and London property and he manages over 1200 properties through his estate agency chain. Today he shares his time between UK, Australia and Singapore. He is married to Arlene and together they have 4 kids.

>