Manchester Property Investment
Should you Consider Manchester Property Investment?
Located in Greater Manchester, Manchester is one of the most exciting places to live and work today. Many young professionals flock to the city for its excellent employment prospects. Experiencing the fastest growth outside of the capital and leading the way in property investment. Manchester has a very promising future ahead.
The city’s population continues to grow at an incredible pace. It’s clearly benefiting from the rise of people leaving London for a more affordable lifestyle. Today, Manchester is considered as the UK’s top rental hotspot with house prices increasing at a rapid pace. Buy-to-let properties in Manchester are in huge demand and have some of the highest occupancy rates in the UK.
Manchester House Price Predictions
Manchester’s vast population growth has put a huge amount of pressure on the city’s housing supply. As a result, Manchester has seen a property boom in recent years. The city boasts impressive growth in house prices – according to HM Land Registry. House prices seeing an increase by 14.7% in 2022 equating to an increase of over £30,000.
Unlike most of the UK, house prices in Manchester actually look set to continue to rise throughout 2023. Although at a slower rate than years prior. The UK market now stabilising following a substantial period of exponential growth. According to JLL’s Residential Forecast, in the years following 2023 house price growth is forecast to increase every single year. This will culminate in an extremely impressive 19.3% increase across the 2023-27 period. To put this into context, if you invested in a property in Manchester for £300,000, you could expect a capital uplift of around £57,000 in the aforementioned period. All whilst generating income via rental payments.
Manchester rental market
Speaking of rental income, the rental market in Manchester has experienced a huge boom in the last few years as more and more young professionals move to the city thanks to the vast number of opportunities on offer. This increase in demand has seen apartments throughout Manchester being let at a premium, resulting in huge increases in recent times.
According to the JLL Cities Index for Manchester, there was a 22% growth in achieved rents for new developments in the city centre in the year to December 2022. This is showing no sign of slowing down. In the aforementioned Residential Forecast from JLL, they forecast that rents in Manchester are set to increase by 6% in 2023. Following will be an increase by an impressive 21.6% in the 2023-27 period. Marking over 5% higher than the national average.
With unprecedented demand for rental properties in the city paired with consistently rising house prices and rents, Manchester offers unparalleled potential for rental growth over the next few years. This makes the city a leading location for buy-to-let investment in the UK.
Manchester Property Investment Stats
- 12.9%
House prices in Manchester increased by 12.9% in the 12 months to November 2022. (HM Land Registry, 2023)
- 14%
House prices are forecast to increase by 14% in the next 5 years (JLL, 2023)
- 22.8%
Rents are forecast to increase by 22.8% in the next 4 years (JLL, 2023)
- 2.8M
Greater Manchester’s population currently stands at over 2.8 million. (ONS, 2021)
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Manchester Economy
Greater Manchester was once known for playing a key role in the industrial revolution. Today, it boasts the biggest city region economy outside of London with a gross value added (GVA) of £78.7 billion.
The region has come a long way from its industrial roots, making a name for itself in a variety of sectors. This includes the tech and digital sector, media, advanced manufacturing and real estate. Between 2024 and 2027, Manchester’s economy is predicted to increase on average by 2.2% a year, comfortably exceeding the 1.9% national growth rate.
The region has also seen a huge number of large corporations choosing to relocate there including the BBC, ITV, Kelloggs, Siemens and The Hut Group. These represent but a few and it’s clear businesses are starting to see the appeal of the boroughs that surround the city. Nearby business hubs such as Stockport, Salford and Trafford, have seen a large number of enterprises relocating their businesses to these areas.
Regeneration in Manchester
One of the key factors in Manchester’s sustained growth over the last few years is the vast amount of investment to regenerate key areas in the city. The last few years have seen the transformation of Deansgate, Ancoats and New Islington to name a few. There are plenty more projects underway that will only enhance the local economy.
Piccadilly Gardens transformation
The hub of the city centre that offers transport links throughout the Greater Manchester boroughs. Piccadilly Gardens is set to undergo an extensive transformation in the coming years. Starting with the knocking down of the much-maligned concrete wall in 2020.The £2m re-invention of Piccadilly Gardens is set to completely transform the deteriorating region. It will see improved lighting, newly raised grassed areas and planting, a children’s play area and the transformation of the Pavilion Wall.
Expansion of the Metrolink system
Manchester’s Metrolink system has expanded its services from the city centre to various corners of the region. These involve Altrincham, Rochdale and Ashton-Under-Lyne. The GMCA is aiming for all journeys in the region to be made via cycling, walking or public transport by 2040. Plans are in place to extend the Manchester airport line to Wilmslow. To develop a tram-train service that will run from Manchester to various locations on the outskirts. These include Stockport, Wigan and Glossop.
MediaCityUK Phase 2
MediaCityUK is completely transforming the Salford Quays area. It continues to play a key role in making Greater Manchester the economic powerhouse it is today. The area has attracted huge corporations such as the BBC, ITV, Kellogg’s and BUPA. A massive part in bringing in around 7,000 jobs into the area. Over the next decade, MediaCityUK is expected to double in size with plans for 10 new buildings in place. These will include office spaces, retail spaces and build-to-rent homes. The expansion is being backed by £1bn of private investment.
Manchester Population Growth
Manchester has completely transformed itself in the last few years to become one of the UK’s leading cities to live, work and invest in. Thanks to a vast amount of regeneration both within the city centre and the surrounding areas, the attraction of moving to Manchester has significantly increased. As such, so has the population in the city.
According to the ONS’ 2021 Census, the population in Manchester is 552,000 as of 2021. This marks a 9.7% increase from the 10 years prior. This is higher than the overall increase in England (6.6%), highlighting just how quickly the city is growing. What does this mean for Manchester property investment?
There is already a major imbalance between the demand for rental accommodation and available stock on the market at the moment. As the city’s population continues to increase this will only lead to a further surge in demand for property in the area. This will push both property prices and rents up.
Manchester: A Student City
Manchester and its surrounding areas are home to three of the UK’s leading universities. The University of Manchester is the largest single-site university in the UK. It is also part of the prestigious Russell Group of universities. Manchester Metropolitan University is the UK’s number 12 sustainable university and one of the most popular choices in the country. The University of Salford is one of the leaders in Arts, Media and Creative qualifications. It has a state-of-the-art campus in the heart of MediaCityUK.
This impressive collection of universities in such close proximity has resulted in a massive influx of students moving to Manchester. The city is home to one of the largest student populations in Europe, with over 100,000 students enrolled at the universities throughout. According to Centre for Cities, over 50% of students in Manchester choose to remain in the city after graduation. The consistently high student numbers allow for student property investment in the city to be a lucrative investment outlet. The high retention rate means that the majority of students who stay will be in need of rental accommodation in the city. This adding to the already high tenant demand in Manchester and bolstering the buy-to-let market.
Connectivity and Transport
Manchester is one of the best cities for connectivity in the UK. It has numerous public transport options available to get you in and around the city. No matter where you are in the region, you should have no issue getting around. Manchester Metrolink, the city’s local tram system, reaches various parts of Greater Manchester. The city’s two main railway stations, Manchester Piccadilly and Manchester Victoria, have direct links to the whole of the UK.
HS2
The High Speed 2 rail link will connect London with the Midlands in the hopes of improving connectivity across the country. Although the highly anticipated rail link will not reach Manchester due to the scrapping of its second phase rail travel will be improved to facilitate faster travel to Manchester Airport and Manchester Piccadilly. HS2 will boost Manchester’s economic potential even further by relieving pressure on Greater Manchester’s railway services and increasing capacity for commuters. Those commuting to and from Greater Manchester will also have significantly shorter journey times to key cities like London and Birmingham.
Where at the Best Areas for Manchester Property Investment?
Ancoats
Ancoats is one of the most exciting and up-and-coming areas in the centre of Manchester. Once the centre of the UK’s industrial revolution, the region has been transformed thanks to substantial investment. This leading to it becoming one of the UK’s most sought-after neighbourhoods. Demand in Ancoats is soaring, with Time Out naming the region the 20th ‘coolest place to live in the world’. This as a testament to the area’s regeneration and being a massive boost for the property market in the area.
New Islington
New Islington is home to a plethora of new homes and amenities as well as a beautifully serene marina offering tranquil city living. All homes and amenities being within walking distance to Manchester city centre. The regeneration in the area has seen New Islington’s popularity rise. Investment potential is soaring in recent times as the neighbourhood continues its exponential growth. Its status is solidifying as one of the most desirable places in the UK to both work and live.
Deansgate
Deansgate is one of the most desirable regions to live and invest in Manchester. Home to the likes of the towering Hilton Hotel, the stunning John Rylands Library and the Deansgate Locks, the area has transformed into one of the city’s leading property hotspots. Deansgate features excellent transport links, thriving bars and restaurants. It has some beautiful architecture that has seen tenant demand skyrocket in the area. For buyers it offers an excellent property investment location.
Salford Quays
Previously the site of Manchester Docks, Salford Quays has become one of the UK’s earliest and largest urban regeneration projects. This following the closure of the dockyards in 1982. Fast forward to the modern day, and Salford Quays features iconic landmarks such as The Lowry. It is home to The Imperial War Museum, Manchester United’s football ground Old Trafford and MediaCityUK. These all contributing to a booming economy and excellent property market.
Manchester Property Investment FAQs
Is buying property in Manchester a good investment in 2024?
Manchester is one of the UK’s leading buy-to-let cities, having experienced a large amount of growth over the last few years. In the 2024-28 period, property prices are set to increase by an impressive 14%. Rents are also set to increase by 22.8%, making Manchester property a good investment.
What is the average yield for properties in Manchester?
According to PropertyData.co.uk, the average rental yield in Manchester currently stands at just under 5%. The leading postcode district in the city is the M6 area, with an average rental yield of 7%. Rental values in Manchester are forecast to increase by almost 22% in the 2023-2027 period, according to JLL.
Is Manchester ideal for a first-time property investor?
Manchester benefits from predominantly lower entry-level property prices than the likes of London, making it more attainable for first-time investors. With both house prices and rents set to increase in the coming years, Manchester offers an excellent location for property investment for a wide variety of investors, including those investing for the first time.
What properties do you currently have available for investment in Manchester?
We currently have a number of available investment properties available in Manchester and its surrounding areas. From high-yielding stunning student apartments to luxury residential mill conversions and high-end skyscrapers across the city. Take a look at our available Manchester property investment opportunities here.
What regions in Manchester are best for property investment?
Manchester benefits from a number of extremely popular areas for investors to choose from. City centre locations like Ancoats, New Islington and Deansgate continue to benefit from numerous regeneration projects in the centre, whilst surrounding regions such as Salford Quays, MediaCityUK and Stockport to name a few are also high in demand.
What is the average house price in Manchester?
According to data from the Office for National Statistics , Manchester’s average home price increased by 5.8% from January 2023 to £250,000 in January 2024.
Why choose Knight Knox for Property Investment in Manchester?
Knight Knox make investing in property simple. We are market leaders when it comes to the sale of off-plan buy-to-let properties for the private investor market, particularly in Manchester. We have almost 20 years of experience in helping clients find their perfect property investment in the Manchester area, offering a personal service to ensure all of your needs are met.
Our track record speaks for itself. launching over 100 developments our 20 years with a total value of over £1.2 billion, over 100 of which are now complete with max tenants. Whether you are a first-time investor or looking to build on an established portfolio, we are certain to have the perfect property for you!
Are you interested in Manchester property investment? Get in touch today!
