January 2020 saw Manchester as the number one city in the UK as a buy to let hotspot after being ranked third in previous years. This list comes from landlord rankings and of the ‘Top 10 cities that UK landlords feel offer the best investment opportunities in 2020’.
Manchester has been the driving force behind the governments plans for the Northern Powerhouse since the beginning with the scheme seeing a total investment of £400M. This vibrant and forward-thinking 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. Recent research suggests that the Manchester population will exceed 635,000 by 2025 with over 100,000 choosing to live in the city centre.
Often associated with its rich industrial heritage, renowned music scene and the suffragette movement, 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 up’s and down’s in the country over recent years, Manchester still manages to come out on top and fighting fit. The city is currently working towards being a zero-carbon city by 2038 - a phenomenal 12 years faster than the current national commitment.
Manchester offers a surprisingly affordable cost of living in both the city centre and the suburbs for professionals, families and students alike, and has one of the most resilient rental markets outside of London. With the cost of living just shy of one third less than London, city centre areas include the stylish Spinningfields and canal-side Castlefield which feature a mix of conversions and cutting-edge developments, while 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 area, announced as the ‘13th coolest neighbourhood in the world’ in 2018, is full of unique independent businesses from barbers and bakeries to some of the best-known restaurants in Manchester.
Current plans for development include Manchester University’s John Dalton West building in the aim to raise its international presence – overall the university plans to spend a total of £378.8M on transforming the campus and its buildings. While on the other side of the city, 20 years on, Manchester’s iconic Printworks is looking a £9M refurbishment with plans including Europe’s largest full span digital ceiling screen.
Manchester’s sprawling suburbs combine a taste of the quieter life with vibrant social scenes, fantastic road and rail connectivity and leafy surrounds.
Recent figures show that the average rental yield for the North West is 4.37% while the UK’s average is 3.53% and London just 3.04% - the lowest in the UK. Couple this with a high demand for rental properties in the North West and there is a clear incentive to invest in Manchester.