Manchester is one of the UK’s stand-out locations for buy-to-let property investment offering high rates of capital growth and exceptional rental yields. It benefits from a strong local economy, high population growth, and all-round appeal as a place to live.
Manchester really does offer something to all residents and visitors. From walks in the peaceful and idyllic countryside to all-night dancing in local clubs, and everything in between, Manchester is a perfect lifestyle city. In fact, it was named as the most desirable UK city in which to live in the 2015 Global Liveability Ranking.
Manchester’s population is growing rapidly, and faster than the national average. It also benefits from a large student population, with around 20,000 deciding to remain in Manchester after graduating each year. Helped by this high proportion of graduates remaining after their studies, Manchester’s population is one of the youngest in the country, with around 60% living in the city aged between the 25 and 30. The city centre population is forecast to grow by 125,000 by 2025, a number that will put severe pressure on the ability of the local authority and house builders to keep pace with demand for new homes.
The area of Greater Manchester make the largest city region economy outside London, with a gross value added (GVA) of £62.8bn.
Many of the UK’s leading public companies are located in Manchester. The BBC has moved here, and Manchester’s financial and professional services sector is booming. MediaCityUK is engaging creative, digital and media start-ups and established companies. The life sciences and health sector is incredibly strong, serviced with a steady stream of exceptionally qualified young people qualifying from the region’s universities, including the University of Manchester, one of the elites Russel Group universities. In total, 70,000 new jobs are forecast by 2026.
Manchester is gearing up to provide the quality transport options that residents and visitors demand. The big news, of course, is HS2. Billions of pounds are being pumped into the rail project, and Manchester will be a major beneficiary. Travel in and out of the city by train will take a massive leap forward when services start. London will be just over an hour away – half of the current journey time and in the commuter territory.
As well as rail travel being upgraded, there are major improvements taking place to the road network, and a £1 billion investment into Manchester Airport
Manchester‘s economy is one of the fastest growing in the UK and this isn’t expected to slow, with future projections forecasting that GVA will grow by 45% between 2016 and 2036.
House prices in Manchester have grown by over 30% in the last five years. Industry experts are expecting house prices in Manchester to grow by 22.8% between 2018 and 2022 (JLL, 2018)
Manchester’s city centre population grew by 149% from 2002 – 2015. Around 50% of Manchester’s graduates stay in the city for work, a rate second only to London in the UK. (JLL, 2018)
Manchester has the highest yield average (5.4%) than any other city in Britain. Rental prices are growing by 5.76% annually. Meanwhile, the North West as a whole, with Manchester as its headline draw, is top of the tables for yield and capital value projections.