Its official, Manchester is the number 1 city in the UK for rental investment.
Savills has pinpointed Manchester has having the strongest regional rental investment rating based on its economic prowess, quality of life credentials and its potential for capital growth and strong rental yields.
This is why Manchester stands out:
Property performance – property prices have accelerated in the city, attracting investors looking for high returns. Average rental yields of nearly 8% are not uncommon in Manchester, outstripping other investment assets by some distance. Since 2010 rental yields have grown by over 6% in the city which compares to a 4.7% growth in the best performing borough in London over the same period. This is why many savvy investors are turning away from the capital and looking to Manchester to capitalise on returns.
Property demand – Manchester’s population is growing at three times the national average and was named as the best UK city to live in by the 2015 Global Liveability Survey. Major companies like the BBC have moved to Manchester raising the profile of the city further and job creation in the city is one of the highest in the country. The gravitation of people moving to Manchester is creating a massive need for property.
Property undersupply – Despite the population growth and influx of people into the city, there is a significant undersupply of accommodation and this is driving rental yields. Investors are maximising on this undersupply by pouring their money into rental property and student accommodation because the demand is so high and strong rental returns can be achieved.
Property for young professionals and students – With the largest university campus in Europe and the fact that over 60% more 25 to 29 year-olds live in Manchester than anywhere else in the UK, the demand for rental property is at an all-time high. The combination of young people finding it difficult to get mortgages, the mind set of young professionals wanting to live in the city and enjoy all its amenities, and the massive student population is creating a surge in buy-to-let properties and purpose-built student accommodation.
With Manchester being at the centre of the Northern Powerhouse plans and with future investment in the city virtually guaranteed, the city is forecast to be a property investment hotspot for the foreseeable future.