Property Investment in Manchester has never been so lucrative, its sheer population is a key reason so many companies have invested in re-locating to the city, with 70 of the FTSE 100 now having set up camp within the city it attracts the some of the biggest companies in the world. It is also hugely popular for smaller companies and investors, more so than London, simply because like everywhere else, it is so much cheaper than London, meaning far more investors are looking at Manchester to make their fortunes.
The average rental yields were 6.8% which came out as the highest average yield than anywhere else in the country. Some yields have reached far higher, 8%, 9% even 10% or more. Resale value has also seen a huge increase, with areas of Manchester such as M5 seeing a jump of 34% in just 3 years, and the Salford area (media city) seeing a 32% rise.
With high numbers of former Students choosing to reside permanently in Manchester after their degrees have finished it is having a huge effect on young professionals buying homes in the area. This will continue to push demand in both the buy-to-let and first time buyer’s market. The list of reasons to invest in Manchester is long, from Salford Quays, Media city, the size and student population as well as the figures surrounding its impressive rental yields all make Manchester one of the property Investment hotspots of not just the UK but of Europe.
As the 3rd largest city in the UK, Manchester has much to offer tourism, investors and its own residential populous. Unlike its close neighbour Liverpool, it is not joint to the coast, and therefore cannot benefit from a port or shipping industry of any kind. Instead Manchester has long relied on, roads, rails, trams and even canals for its overall infrastructure. The name Manchester is famous throughout the world for its sports teams, Manchester United and Manchester City, United probably being the most widely supported sports team of all time.
The city has a number of impressive stats, for instance it has the largest proportion of young people than any other UK city, and is said to be, time and time again the highest yielding city for buy-to-let property. Many choose to reside in Manchester as it has all the same shops, bars cafes that can be found in London but in a far smaller area which is also highly pedestrianised and relies heavily on trams for inner city transport, rather than super high volumes of taxis buses and cars. Obviously it has all these forms of transport, but as a pedestrian walking the inner city paths it does not have the same feel as London.
With two major Universities and an additional 2 smaller centres of higher education it boasts 4 Universities (the biggest and most established being Manchester University). The exact figure of students in the area is so vast that figures differ, as it has the largest student population in Europe. Our estimate is around 90,000 students according to some reports. For a city somewhere in the region of 25-30% the size of London this is truly an impressive figure. The total population of Greater Manchester is well over the 2 million mark with Manchester itself having around 500,000 people. The overall area is the most populated area outside of London.
Already as mentioned Manchester has the highest student population in Europe, and has a number of World-Class Universities. The Salford Quays area alone contains around 20,000 students with 36% more postgraduates than the UK average, Manchester is truly a student city. The demand on higher living standards for International students is growing, whilst the Universities are just not able to deliver such standards. Manchester University has admitted itself that it lacks accommodation for this demand, and relies on private companies to house its huge enrolment of students. University of Manchester, Manchester Metropolitan University, Manchester Business School and the Royal Northern College of Music are all situated within the same area known as Oxford road, creating a competition for students to acquire the best property available.
With the countries largest University by student numbers and a second of almost similar size the city truly has strong ties with young people and always will meaning the demand for student accommodation will always be present.
By no means does Manchester just rely on it students, as mentioned before, the number of its students who decide to reside permanently in the city is incredibly high as young professional have plenty of reasons to live there. With Media City which houses companies such as the BBC, ITV and over 200 other companies.
With house prices rising Manchester is expected to see more than a 20% increase in house prices by 2020, it is clear homeowners are willing to pay anything to live in the most desirable areas. It is clearly the case that we as a society are willing to work our whole lives for the perfect home in the perfect area. With everything going for it Manchester is at the leading edge of this as investors take advantage of this opportunity. The simple truth is that house prices will always be on the rise and ready for investors to take advantage of, the only real obstacle is having the capital to invest in the first hand. With prices lower in the areas such as Manchester, it is a far easier place for first time investor to start their investment portfolio.
Manchester’s residential market ranges from houses for young families to apartments which are geared towards young professionals beginning their careers. With the level of business interest accumulated in Manchester over the past decade these young professionals are in a position where earning potential is bright, this will have a direct effect on how much is willing to be paid on mortgages, and our predictions are that a 20% rise in property prices is underselling the area as we expect to see far higher increases over the coming decade.
Salford Quays is a newer modern area of Manchester, obviously it has always been there, but with the building of Media City it is now a global Hub for digital and creative sectors helping to attract 70 of the 100 FTSE 100 companies to settle themselves in the City. It has over 200 companies including BBC, ITV, SIS, BUPA, Cussons and many more. These companies push up the average salary. It is a key part of the overall Manchester economy, helping it to grow by over 14% since 2004. Markets that have contributed the most to this are public sector, financial, professional and an expanding creative and digital sector. At Salford Quays alone tourists spent £251 million in 2012 and all together Salford has 7900 separate businesses. In several studies it is suggested that Salford has some of the most desirable residential property in the UK.