Manchester as a Buy to Let hotspot
After ranking within the top three top buy to let hotspots over the past few years, June 2015 saw Manchester reach the number one spot as the best performing area to achieve the highest yields.
Manchester is the driving force behind the government’s plans for the Northern Powerhouse with a planned £4 million of investment due to be ploughed into the area. This is in addition to the millions of pounds worth of private funds also being invested. This vibrant city is the most active business hub outside of London and is considered as the UK’s ‘second city’ with an ambition that knows no bounds.
Often associated with its rich industrial heritage, renowned music scene and sporting success, Manchester has grown into a pioneering, modern hub, capable of competing on a global level with its world-class transport infrastructure, leading educational institutions and prolific service and retail sectors. Despite the downturn, Manchester has developed at a phenomenal pace and has continued to receive significant inward investment as a result of its economic success.
Manchester offers a surprisingly affordable cost of living both in the city and suburbs for professionals, families and students alike, and has one of the most resilient rental markets outside of London. City centre areas including the stylish Spinningfields and canal-side Castlefield feature a mix of conversions and cutting-edge developments, whilst in the alternative Northern Quarter the trend is towards conversions and new-builds which complement the existing design structure.
For young professionals seeking the convenience of inner-city life, but without the price tag, Ancoats provides fantastic value having undergone regeneration as a result of significant government and business investment.
The creation of MediaCityUK and the relocation of BBC’s headquarters has transformed areas such as Salford Quays into desirable places to live, with demand at an all-time high. Over 15,000 jobs were created as a result of this large project and investment into the area has regenerated Salford into an incredibly popular location. In 2014, Salford property prices grew by a huge 12% in just six months with the average home gaining £90 each day.
Manchester’s sprawling suburbs combine a taste of the quieter life with vibrant social scenes, fantastic road and rail connectivity and leafy surrounds.
Figures from Q2 2015 show that average rental yields in the North West were around 7.9%, compared to figures as low as 2% in London during the same period. We aim to provide investors with buy-to-let yields of around 8% in Manchester. Couple this with a high demand for rental properties in the North West and there is a clear incentive to invest in Manchester.