Why investors love Manchester

Why investors love Manchester

With the London property investment market so saturated and expensive, investors are looking north to expand their property portfolios, especially in cities such as Manchester. Analysts predict that the prices for residential property in Manchester will rise by over 22% in the next three years so now is a great time to invest

Average rental yields of between 8% and 10% are not uncommon in Manchester, beating other investment asset classes by a considerable distance. Since 2010 rental yields have grown by over 6% in the city which compares to a 4.7% growth in the best performing borough in London over the same time period. This is why so many investors are turning their backs on London and looking to Manchester to capitalise on their return on investment.

Powerful reasons to invest

Here are just some of the powerful reasons why investors love Manchester:

  • Over 65% of FTSE 100 companies have offices in the city
  • The number of 20 to 30-year-olds living in Manchester has doubled in the last 10 years
  • Manchester is the focal point of the £50 billion Northern Powerhouse
  • Over 85,000 students are based in Manchester, making it the UK and Europe’s largest university campus
  • HS2 will reduce London to Manchester travel times to less than 60 minutes
  • Manchester Airport is the UK’s largest regional airport with a reach that extends to 225 worldwide destinations including links into China
  • High profile organisations such as the BBC have moved a large part of its operation to MediaCityUK in Salford Quays from West London sending the message that Manchester is a great place to do business and a hotbed for talent and creativity.
  • Manchester was named by The Economist Intelligence Unit in 2014 among the world’s 50 most liveable cities ahead of London, New York and Rome. The Sunday Times also voted Manchester as the UK’s most exciting city.

Supply and Demand

The low supply of housing and high demand in Manchester; the sheer volume of young people finding it difficult to get mortgages; young professionals wanting to live and work in the city and enjoy everything it has to offer; and the huge student population. All these factors point to Manchester being a buy-to-let property hotspot.

Looking to add Manchester property to your portfolio? Get in touch today and talk to the experts.