Property Investment In Manchester

manchester property investments

Property investment in Manchester offers a great deal of potential…

Manchester is the 3rd biggest city in the UK. It’s population is growing steadily year-on-year and it has strong housing demand from both homeowners and tenants.

Being such a large area, Manchester has lots of different property markets to choose from – from lower value two-up-two-down terraces in the east, to city centre apartments.

East and North Manchester have great rental yields and some very low price properties which can be perfect for the right investor.

West Manchester offers a mix of opportunities with a fantastic balance of capital growth and rental returns.

But, the area I like most, especially if your looking for solid HMOs and capital growth, is South Manchester which in my opinion offers the best investment opportunities.

Don’t just take my word for it though. Have a look below and see for yourself why property investment in South Manchester offers so much potential.

Why Manchester?

Property Investment Manchester Infographic

So we’ve looked at ‘Why’ Manchester, has a lot to offer us as Property Investors, but as its such a large area, it’s important to know ‘How’ you can find the very best locations.

To help you, I’ve created this quick 5 minute video to show you how you can find the locations that will work best for your own personal strategy, whether you’re looking for lower value pockets for buy to lets, or higher value areas for HMO’s or flat conversions.

The Best Places To Invest In Manchester

Now you’ve found the right locations, it’s important to see how much rent you can achieve and what your rental yields might be, after all its not much of an investment in less your making a great return on your money.

So here, I’ve created another short little video for you, to show you how using just two websites (in less than the time it takes to make a coffee), will show you exactly how to find your potential rental income and what returns your Manchester Property Investments will generate.


What Are The 7 Best Places To Invest In Manchester and the North West?

Thinking about investing in Manchester or close by? This is our list of the 7 best locations to invest in the north-west.

  1. Salford
  2. Tameside
  3. Manchester City Centre and South Manchester
  4. Wigan
  5. Chester
  6. Warrington
  7. Wythenshawe

How To Find The Market Rent For Your Manchester Properties

Why You Should Consider Manchester

If you’ve read any of my other articles you’ll know I chose locations to invest in because they offer the best mix of rental returns, capital growth potential and tenant demand.

Manchester offers the very best combination of these factors.

1. Housing Demand and Supply

Let’s consider the key factors affecting the Supply and Demand of Housing in South Manchester:

Housing Supply

The South Manchester market has the highest proportion of properties with 3 or more bedrooms, compared to all of the other Manchester regions. 67% of its housing stock has 3+ bedrooms, so it offers more properties suitable for longer-term family homes for single let tenants – or the potential of a conversion to a multi-let residence.

South Manchester has the highest proportion of Owner Occupied Housing Stock compared to all other Manchester Regions. 55.9% of the region’s stock is Owner Occupied and 23.5% is private rented.

The local council’s Draft Core Strategy (for new build developments) only provides a provision of 5% of new homes in the region, because of the limited site availability. This restriction on future supply will put pressure on the house prices.

Housing Demand

The average size of a typical ‘household’ in the Manchester region is declining, but the overall population is increasing, this will increase the demand for housing – particularly multi-lets.

2. House Prices

House prices in the Southern section of Manchester are currently the highest in the whole of the Manchester Region and have seen the largest growth during the last cycle.

Although there are still some lower-priced pockets of housing still available within South Manchester, the high demand for housing across the region will keep these prices rising. And in most areas, terraces & semi-detached properties are already back to their 2007 peak prices.

3. The Local Economy

Some key points on the South Manchester economy:

According to economic predictions, Greater Manchester is expected to weather the storm of the economic recession better than the rest of the North West.

The Southern Manchester sub-market is showing the highest increases in economic growth, stability, and key employment indicators, compared to the rest of the Manchester regions.

In May 2009 a £1.5 billion fund was agreed for 15 transport schemes in Manchester. These include the extension of the Metrolink out on two major lines across the south, linking it with the city centre and other areas.

There’s an investment of £1bn expected into Manchester Airport facilities alone over the next decade.

4. Summary

To summarise the area, I would consider 3 key points:

  1. The return to peak property prices in most of the region makes it hard for investors to invest in the area solely for discount & yield. But if you know how to find the right properties at the right price, a good yield (8%+ for single lets & 12%+ for multi-lets) can still be achieved.
  2. The increasing population, housing demand – and limited availability of building land – in the region is keeping prices high even though sales activity is low.
  3. Manchester offers great stability and a safer bet for capital growth than most other regions and is a market to consider if this is your main investing criterion, or other areas close to Manchester like Tameside and Salford over very good alternatives.

Although Manchester may not be the cheapest location to invest in, due to some of the higher value areas, it certainly does offer strong potential for long-term stability and capital growth, unlike anywhere else in the North West. Whilst still providing an extremely buoyant rental demand and a mix of areas for any strategy that you’re looking to target.

But if you would prefer a good all-rounder, with lower purchase prices than South Manchester, but still with strong capital growth potential, then why not consider Chester?

Or if maximum returns on investment from rental yields is your aim, then take a look at East, North, West Manchester or Warrington.

I hope that’s helped to give you some more information on the Best Locations To Invest in Property, but if you’re looking for help then let’s chat, and if you want to see how I do things a little differently from the large corporate investment companies, take a look at my background and See Why I’m Different.



Sources

The websites I have referred to on this page:

  • For the Manchester heatmaps, have a look at Mouseprice.com
  • To see the local market rents for your Property Investments in Manchester, check out rightmove.co.uk
  • To see the Local Housing Allowance for your Property Investments in Manchester, check out the LHA Rates Website

For information on the local council investment in the area:

See also:

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