Manchester named number one buy to let hotspot in the UK
Manchester is currently achieving higher rental yields than all other cities throughout the UK according to a new report.
Research from HSBC found that the North generated the strongest yields, with the top three hotspots all located in the North of England.
Manchester came in first place with yields averaging 7.9% across the city and a 4% increase in annual rents. It was also found to have the strongest rental demand in the UK, with a large student population and over a quarter of all properties in the region privately rented.
Liverpool was also named as one of the top 10 buy to let hotspots, with average yields of 6.5%. Both Manchester and Liverpool have increased by one place compared to last year’s report.
London was found to be the worst performing city, with yields as low as 2% in some areas and average house prices reaching almost £500,000 - five times higher than in Manchester.
Graham Davidson, managing director of Sequre Property Investment, comments on the latest findings:
“The report from HSBC confirms what we already know – that Manchester is continuing to attract investors away from the South and into the North. Both students and young professionals have created a surge in demand for high specification apartments in the private rented sector, resulting in landlords experiencing excellent returns in the city centre as well as its surrounding areas. Here at Sequre, we have noticed a sharp rise in the interest being shown around Salford Quays and MediaCityUK due to its prime location as well as its strong yields.”
“Unsustainable house prices rises in the capital mean that London property is simply not a viable buy to let investment. The report shows that areas such as Manchester and Liverpool can offer both affordable housing and strong yields with prices increasing, but at a more consistent rate. With this in mind, it is no wonder that many investors are looking to the North as a means to expanding their buy to let empire and will continue to do so for the foreseeable future.”
The North West continues to go from strength to strength when it comes to buy to let. If you’ve been considering a buy to let property investment, speak to Sequre today. We offer a hands-off approach with our investors and our bespoke service allows us to provide access to heavily discounted investment opportunities that aren’t available elsewhere. To find out more, contact our team on 0800 011 2277.