• Skip to main content
Property Investments UK Logo
Skip NavigationMenu
  • About
  • Blog
    • Latest Articles
    • Investing In Property
    • Locations
    • Media and Press
    • Property Experts
    • Strategies
    • Selling Your House Quickly
  • Training
  • Buy a Property
  • Sell a Property
  • Contact

09/05/2016

Which Areas of Manchester See the Best Capital Growth in Property?

Property growth in Manchester means that there are a lot of great opportunities for property investors but these opportunities vary depending on where in the city you are. South Manchester is best for capital growth but for cash flow, the North, West and East can be a lot better.

Quick Links

  • The Question
  • Property Growth and Rental Yield
  • Your Investment Criteria
  • Investing in South Manchester
  • Your Aims and Goals
  • Join Our FREE Training Today

The Question

Today we are looking at a client's question about investing in Manchester property.

We'll be looking at the different areas of Manchester and asking whether the focus of an investor should be on property growth or rental yield. We'll also be looking at whether this focus should change depending on the specifics of the location.

The question is from Raj and it's...

"Dear Rob, I have watched some of your videos and thought they were thorough and very thought-provoking indeed. I am looking to invest for yield and capital gain in England. Since house prices in London have soared, I started looking at the Manchester area. My budget is just below 200,000 pounds in cash. I would appreciate some advice. Thank you. Best, Raj."

Quick Links

Property Growth and Rental Yield

So there are a few things to consider mainly around which areas of Manchester you should be looking at.

A budget of 200,000 pounds is quite healthy and you'll get good rental yields in Manchester for that.

So, what I'd suggest is that, instead of just thinking in terms of the headline amount, you think a little bit harder about what you want in terms of your rental yield or return.

You want to know exactly what cash flow you're looking to achieve when you invest in Manchester property.

Also, there is a trade-off here as you also want to know what potential there is for capital growth in the property as well.

Quick Links

Your Investment Criteria

I can give you some idea which areas of Manchester might be fit for your investment.

So, if you're looking for a rental yield of, say, 8%, you are going to have to look at quite specific areas of Manchester that are going to fit that criterion.

Likewise, if you're looking for a particular tenant profile (working tenants, social housing tenants, maybe students), again there are particular areas, or growth areas of Manchester, that will fit that criteria better than others.

Quick Links

Investing in South Manchester

So as a rough rule of thumb...

South Manchester is currently performing very well for capital growth.

It has performed well for capital growth in the past, it's currently performing well and there's no reason the trend shouldn't continue.

There is plenty of investment in the area. There is employment. There are business parks. There there are good transport connections including a recently extended metro link.

So, if you want to buy houses in Manchester that have good capital growth, then investing in South Manchester is a good bet.

... but the yields can be relatively low.

  • The average yield in South Manchester is only about 6 to 6½%.
  • In other locations in Manchester, investing in property will get you 7 to 7½%.
  • There are even areas of the city where you might expect 8%+

Don't be disheartened, as this article in LandlordZone points out, last year the rental yield in the city of Manchester was the best in the country.

But, when you're thinking through your investment strategy it's important to strike the balance you want between capital growth and yield.

In South Manchester, you find more property growth areas with great capital growth over the next 5-10 years.

But in those lower-value areas of Manchester, your yields are going to be higher.

Quick Links

More Articles on Investing In-and-Around Manchester

  • The Best Areas of Manchester to Invest in Buy-to-Let
  • The Seven Best Places to Invest in Property in the North West
  • The Best Areas of Salford to Invest in Buy-to-Let
  • The Best Areas of Warrington to Invest in Buy-to-Let

Your Aims and Goals

So, you've worked out your individual aims and goals, now what? What's your priority?

Is it cash flow, income on a monthly basis? If this is the case you need to make yield more of a priority.

If you want to build a pension plan then maybe capital growth is where you should be looking - in which case South Manchester offers probably the best opportunity.

For more information please read our guide to goal setting.

If what you want from your Manchester property is higher yield then you should look to the North, East and West of the city.

Thanks, Raj, I hope you found that helpful...

Here are a few links to other articles we've written on how to research yield in a given area and a few other things we thought might help you along your way.

Quick Links

Join Our FREE Property Investment Training Programme Today

Sign up for our free online property training course today.

In there we cover a range of different property strategies to help you get started on building a long-term property portfolio or creating a cash flowing property business.

We also look at ways to increase your return on investment with any of the properties you may be considering and we also have a couple of cheat sheets and downloadable documents.

Quick Links

Rob Jones Answers:

  • Should I Use My Deposit to Buy One House or Two?
  • What Kind of Contracts do Property Sourcers Need to Use?
  • Property Sourcing | What Should My Finder Fee Be?
  • What Is The Best Way To Work Out Rental Demand?
  • How Do I Go About Raising Property Investment Finance?
  • Is Investing in Property with only £20,000 Realistic?
  • How Do I Find Repossessed Property To Buy in London?
  • Should I Invest In South Manchester Or The City Centre?
  • How Do I Evict A Tenant? (Section 8 Notice to Quit)
  • How Can I Buy a House Without a Mortgage?
  • What Exactly Is Property Due Diligence?

Filed Under: Locations, North West, Property Experts, Rob Jones Answers Your Questions

ON THIS SITE
  • Buy a Property
  • Sell a Property
  • Courses and Events
  • Property Crowdfunding
  • Blog
  • Reviews
LEGAL
  • Privacy Policy
  • Terms Of Use
  • Cookies
  • LOG IN

    Current members of any of our training programmes and courses can log in here:
    The Property Investor's Handbook
    The Buy-to-Let Masterclass

    PROPERTY INVESTMENTS UK

    Westminster House,
    10 Westminster Road,
    Macclesfield.
    SK10 1BX

    Company Number: 08852962
    VAT Number: 293 4194 80

    rob@propertyinvestmentsuk.co.uk

    DISCLAIMER

    Property investing, like any investment, carries risks. It is important to note that results achieved in property, from following our training courses may vary from user to user.

    For full details, disclaimer and policies click here.
    To contact us click here.

    MEMBER OF
    member-the-property-ombudsman

    2020 - Property Investments UK - All Rights Reserved

    Sitemap