The UK buy to let market is thriving more than ever in 2018, and Manchester is playing a big part in its success. Recently emerging as the dominant force behind the Northern Powerhouse, the city of Manchester should be on everything investor’s radar. Whether you’re investing for the first time, or deliberating your next venture, choosing between student and residential properties can be tricky.
Student
Home to three major universities and over 100,000 students, there’s no shortage of students in Manchester. With its higher education population considered one of the largest in Europe, it’s clear that the city is doing something right in terms of attracting undergraduates. It’s not just its academic superiority that appeals to young students. Well-known for its distinctive culture, Manchester combines all of the elements required for a top student experience, from informative libraries to the edgiest nightclubs.
From an investor’s perspective, the strong tenant demand is the first plus point when considering a buy to let investment in student accommodation. These days, students expect a lot more than dingy shared halls. With one of the largest overseas student populations in the UK, there’s also an abundance of wealthy undergrads from abroad that are willing to pay high rents for superior purpose-built accommodation.
On the hunt for higher quality, modern apartments in the city centre with improved on-site facilities, this massive gap in the market is yet to meet the total number of students in Manchester. If investors can get their hands on an all-encompassing student flat in a contemporary development, it’s very likely to be snapped up by keen uni goers.
In terms of return on investment, Manchester student properties provide some of the highest rental yields across Britain, and the city has been ranked in the top 20 for best average potential yields in the UK. With potential to gain 8% returns, Manchester overtakes several other student towns that simply can’t achieve such rental yields. Oxford Road in the city centre and Salford are top spots to look into for high returns in convenient student locations.
Other more general benefits to student property investments are the fact that there is no need to pay council tax or stamp duty tax, as well as having the peace of mind that your unit and tenant will be looked after by an external management company.
Residential
A magnet for commercial investment, regeneration has taken the city by storm. Building on its roots in industry, Manchester has evolved into a more diverse economy with a buzzing business hive that attracts young professionals seeking work. A large proportion of the student population in Manchester decides to remain in the city after graduating, thus also requiring residential living close to the city centre’s wealth of job opportunities.
MediaCityUK is an example of a corporate hub with digital industries such as the BBC and ITV situating studios there. Youthful innovative minds crave experience in creative sectors like this, flocking to areas such as Salford Quays that are popular for buy to let properties alongside the media core. The city also boasts the head offices for many banking giants in the sophisticated Spinningfields zone and is home to headquarters of fashion industry leaders in the Northern Quarter and Ancoats. The possibilities for employment in ‘dream’ jobs are endless, assuring investors that the high influx of workers in need of residential accommodation is not set to falter anytime soon.
The quality of life away from work in Manchester is also pleasing, with expansive shopping centres, tasteful art galleries, individual cafés and award-winning restaurants pulling people in. Manchester was previously voted the best UK city to live in. But what does this mean for investors?
The current undersupply of housing cannot keep up with the rising population, allowing investors the unique opportunity to invest in this lucrative market with a tenant demand stronger than ever. With buy to let rental yields of over 8% in some Manchester post codes, residential properties generate excellent returns that are made even more tempting by the initial low purchase costs. House prices are predicted to surge all over the UK in the future, and Manchester’s progress continuing to improve the city means that those who invest now will benefit from maximum capital appreciation in time.
Tenants tend to be long-term, leading to a reduction in vacant periods and subsequently a constant flow of income. Like student property, there is also the possibility for an experienced management company to take all the hassle away from your investment.
For more information on buy to let investment opportunities in 2018, contact RWinvest on Tel: +44 (0)151 808 1250, via Email: info@rw-invest.com or visit the website at: https://www.rw-invest.com
