With more than 10,000 private rental units due to be constructed in Manchester over the next few years, institutional investors are increasingly turning to the private rented sector in the North West to improve their returns.
The UK’s private rented sector (PRS) is set to receive billion pounds worth of investment from pension funds and insurance companies and Manchester is at the heart of this investment. According to the British Property Federation, an estimated £30 billion is about to be invested in PRS and it’s cities like Manchester that are poised to benefit significantly from these investments.
Manchester has one of the youngest populations in the UK and a severe undersupply of housing stock so it’s regarded as a prime PRS investment location. Over the years there has been a shift of attitude towards home ownership in the UK, especially amongst young professionals. Being a home owner is no longer seen as a hallmark of success and it’s actually the flexibility of renting that appeals to a younger audience.
This change in mindset has led to forecasts that over 50% of 20 to 39 years olds in the UK will be living in rented properties by 2025. Because Manchester has a higher percentage of this demographic than anywhere else in the UK, the city is seen as a PRS hotspot.
If you are looking for property investment opportunities in Manchester and would like to know more about the potential returns then please contact us now.