Manchester is one of the fastest-growing cities in the UK. It is predicted that residential rents here will be the highest in the country over the next few years. If you are thinking about investing in real estate in Manchester, let’s take a closer look.
Why should you choose Manchester?
Manchester is attractive to investors for many reasons:
- Profit. Compared to London, housing prices in Manchester are lower, and rental income may be higher at the moment. Rental yields reach up to 7,6%. It is significantly better than the London yield, ranging from 1,5% to 5,3%.
- Economic center. More and more companies have started to work in Manchester in recent years. Job creation in Manchester could soon surpass cities such as Berlin, Tokyo, and Paris. Many giant companies such as Google, Cisco, and IBM have offices in Manchester. A significant factor in the city’s success is the creation of MediaCityUK, which houses the BBC, ITV, and Mediacom.
- Universities. Manchester is home to five of the UK’s leading universities and the University of Manchester is ranked among the top 30 universities globally according to the QS World University Rankings. With over 100,000 students living in the city, investing in student housing in the real estate market is worth considering. Also, after graduation, some of these students remain to live and work in Manchester, which means they need housing.
- Transport interchange. Firstly, the city has Manchester Airport. Secondly, the railway and other ground means of transport are well developed here. People can quickly get to any corner in the country, so many who do not want to live in London choose Manchester.
- Developed infrastructure. As the ninth-largest city in the UK, Manchester offers its residents a vibrant cultural life with dozens of museums, theatres, and art galleries. Also in the city, there are many large shopping centers, an abundance of restaurants, and the famous Manchester United stadium, Old Trafford.
How to choose a property in Manchester?
You have two options: buy a new building or use the second homes market. In any case, a thorough analysis of the current options should be carried out.
If you’re considering buying a property in a new building, that you plan to rent out in the future, there is excellent news. Most of the local apartments are explicitly designed to meet rental demand. So you have a lot of choices. For the convenience of finding suitable options, you can visit Korter or other similar platforms, which collect up-to-date information about new buildings: prices, available apartments, images, floor plans, detailed descriptions, and more. You need to select Manchester in the city filters to see all available new buildings.
When buying a house on the secondary market, choose buildings of about 10-15 years old. In this case, you also need to invest in repairs and home improvements, but in the end, the result will be worth the effort.
Also, when choosing a house with the intention of renting it out, it is essential to consider your future potential tenants. Who will it be: students, young professionals, or families? This factor influences which features to pay attention to when choosing the house.
Options for buying a new home for yourself
You may have the full amount to purchase a new building, or you may not have enough for a certain part of the amount. Therefore, you can use one of the available schemes. Help to Buy is hardly suitable in this case because this program is available only for first-time buyers. It is worth paying attention to Shared Ownership, which still allows those who already own the property to buy houses if their property is in the process of a sale. In this case, you buy a share in a house from a housing association and pay off the cost of the remaining share under a mortgage. You can view new homes available under the Shared Ownership scheme right here by selecting Manchester instead of London. The website will provide detailed information about all current new buildings.
Which area of Manchester to choose?
Manchester is a large area divided into many districts. The most attractive places for investment in real estate are the following:
- Manchester City Centre. The city’s population continues to snowball, so there is always a demand for rental housing in the center. In addition, this is an area with an abundance of facilities and excellent transport interchange.
- Salford. This area is also close to the city center and is home to the famous business districts of Salford Quays and MediaCityUK.
- Stockport. With good transport links to the city center, this is a popular residential area for families.
- Moss-side. Many students live here due to the proximity of the location to several universities in Manchester.
- Trafford. It hosts Manchester United’sfootball ground and the famous Trafford Centre shopping mall.
