Manchester is one of the most desirable and livable cities in the UK. With a population of more than 2.8 million, Manchester has undergone rapid regeneration in recent decades and growing demand for the city’s housing stock is pushing up average property prices at some of the fastest rates in the UK.
We take a look at some of the top Manchester postcodes with the best places to invest in property where investors can expect the best returns in the near future.
Why Invest in Manchester?
With some of the highest rental yields and capital appreciation forecasts, Manchester, and therefore Manchester property, was crowned the best location in the UK to invest in buy-to-let in 2021. From mid-2020 to mid-2021, house prices in Manchester increased 9.29% and the city’s average cost of property is now £217,142. According to global commercial real estate company JLL, through 2025, Manchester is set to experience the highest sales and rental growth of any metropolitan area in the UK, making property investment in Manchester highly advantageous.
Out of the Manchester postcodes, M4 is home to a number of highly livable districts that tend to be popular with young professionals. The Green Quarter is just north of Victoria Station and the location of newly regenerated areas that are perfect for city living with plenty of shops, cafes, breweries and pubs on the doorstep.
Located close to the Northern Quarter, thanks to significant regeneration, the Ancoats and New Islington area is another of the trendiest places to live in the city in the M4 postcode. Known as the Arts and Theatre neighbourhood, it was named in the Top 50 Coolest Neighbourhoods in the World by Time Out and remains highly convenient thanks to Manchester Piccadilly station being just a short tram ride away.
If you’re looking to buy property in Manchester, average prices in the M4 postcode are currently £231,209. Rent is £934 per calendar month on average, and rental yields are 4.8% on average.
The M14 postcode is home to areas popular with students, including Fallowfield, Moss Side and Rusholme. Located in the south of the city, Fallowfield is in close proximity to the campuses of the University of Manchester and Manchester Metropolitan University and is just a 30-minute walk to the city centre. Rusholme is also close to campuses and one of the most affordable student areas, making student property a popular investment in this postcode.
The M14 postcode has properties with a current average asking price of £194,733, average rents of £1,636 a month, and a yield of 10.1%: the fifth-highest yield in the UK.
Manchester’s M1 postcode has experienced 15% price growth since 2015 and offers many opportunities for investors. As well as the popular Northern Quarter, home of thriving nightlife, restaurants and bars, the Piccadilly district is set to be one of the most popular neighborhoods in the city thanks to ongoing regeneration and the emergence of luxury and affordable housing projects.
Average property price in the M1 postcode sits at £235,361 with average rents of £1,096 and yields of 3.9%.
Out of the Greater Manchester postcodes, Salford, or M50, is the ideal location for those looking to live close to Manchester city centre and the Salford Quays waterfront. Salford Quays is the home of MediaCityUK and names like ITV and BBC, and in the last five years, the number of businesses in the area has increased by 20%.
A hotbed for young professionals, property prices are on the rise and there are plenty of opportunities to take advantage of capital appreciation. Average property prices in the area currently sit at £202,63, average rent is £881 per calendar month and yields are around 5.2%.
Manchester offers plenty of opportunities for those looking for profitable buy-to-let property. With regeneration transforming the city, capital gains set to increase and plenty of strong rental yields, there are plenty of top Manchester postcodes for UK Landlords. Find out more about how to invest in Manchester by getting in touch with our team.
Is property in Manchester a good investment?
In 2021, Manchester saw annual house price growth of 5.9% year-on-year and as regeneration schemes bear fruit and the city’s population continues to increase, this growth is predicted to continue.
Why is there a housing boom in Manchester?
In the past year, house prices have risen sharply across the UK and the North West region saw an increase of more than 15%. With many people now able to work from home as a result of the pandemic, more are looking for property for sale in Manchester because it’s cheaper than the capital but still a highly attractive and livable big city. In 2021 Manchester was one of the UK’s busiest housing markets and thanks to a strong economy, local job market and redevelopment, it continues to be an attractive place to live.