Areas of Manchester with the Highest Rental Yields: A Guide for Investors
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by Robert Jones, Founder of Property Investments UK
With nearly two decades in UK property, Rob has been investing in buy-to-let since 2005, and uses property data to develop tools for property market analysis.
Manchester has a strong rental market but Manchester property prices are still under the national average. That means that Manchester can offer some very attractive rental yields if you know where to look. Here’s our guide to finding the highest letting yields in Manchester.
Contents
- What is the Average Rental Yield in Manchester?
- What is a Good Rental Yield in Manchester?
- How to Achieve a High Rental Yield
- How to Calculate Yield
- The Areas of Manchester with the Best Rental Yields
- Fallowfield and Rusholme
- Beswick, Clayton and Openshaw
- Collyhurst, Miles Platting, Moston, New Moston and Newton Heath
- Gorton
- Hulme
- Higher Broughton, Cheetwood, Kersal and Lower Broughton
- Salford Quays
- Blackley and Harpurhey
- Manchester City Centre (M3)
- Ardwick, Longsight and Chorlton-on-Medlock
- Droylesden
- Wythenshawe
- Atherton
- Failsworth
- Ancoats and the Northern Quarter
- Which Areas of Manchester have the Highest Rental Yields?
- Which Postcodes have the Highest Rental Yields?
- Read More
What is the Average Rental Yield in Manchester?
The average gross yield for a long let can vary depending on the area of Manchester. Most areas of Manchester offer a gross yield of at least 4-5% while other areas offer almost 9%.
Note: These are average figures and may be higher or lower depending on the property.
You can check possible letting yields for any part of Manchester using property xyz.
Local estate and letting agents for the relevant part of Manchester can advise on local pricing and likely local achievable rents and so the actual rental yield you are likely to receive.
What is a Good Rental Yield in Manchester?
Looking at the data from property xyz anything over 5% could be considered a good yield for landlords in Manchester.
How to Achieve a High Rental Yield
Average yield figures are normally based on the yields possible from the long let of a property to a single person or family. However, it should be possible to get much higher than average yields for some types of lets.
Generally higher yields in Manchester can be obtained by letting a property as a house-share (a house in multiple occupation or HMO), to student tenants, or as a short-term or holiday let.
Access our selection of exclusive, high-yielding, off-market property deals and a personal consultant to guide you through your options.
How to Achieve a High Rental Yield
Average yield figures are normally based on the yields possible from the long let of a property to a single person or family. However, it should be possible to get much higher than average yields for some types of lets.
Generally higher yields in Manchester can be obtained by letting a property as a house-share (a house in multiple occupation or HMO), to student tenants, or as a short-term or holiday let.
How to Calculate Yield
To find a Manchester gross rental yield divide the annual likely rental income from a property by its likely purchase price and then multiply it by 100 to find the average percentage gross yield.
For example, a Manchester property with a cost price of £350,000 and a monthly rental value of £1,800 would offer a letting yield of £1,800 x 12 = £21,600 annual rental income.
£21,600 divided by £350,000 x 100 = 6.17% annual yield.
If you don't want to do the maths yourself, you can use a rental yield calculator.
The Areas of Manchester with the Best Rental Yields
In this report, we’ve analysed property price and rental data from right across the Greater Manchester area to find the top 15 areas with the highest rental yields.
Fallowfield and Rusholme
The M14 area includes the suburbs of Fallowfield and Rusholme plus some or all of Ladybarn, Longsight, Moss Side, Rusholme and Victoria Park. They are to the south-east of the city centre with good links by road and bus.
Fallowfield and other parts of this district are very popular student accommodation areas, as they have good access to Manchester’s two large universities.
Student houses generally offer excellent rental yields and it is for this reason that M14 has the highest letting yields in Manchester at 8.9%.
Beswick, Clayton and Openshaw
Together Beswick, Clayton and Openshaw make up the M11 postcode area. They are in East Manchester, around 2-3 miles east of the city centre. The area comprises many residential housing estates and is also known for the Etihad Stadium, home of Manchester City FC.
The M11 postcode area is amongst the top 15 cheapest places in Manchester to buy a property. That means strong rental yields are possible. In fact, Beswick, Clayton and Openshaw offer the second-highest rental yields in Manchester at 7.2% currently.
Collyhurst, Miles Platting, Moston, New Moston and Newton Heath
Collyhurst, Miles Platting, Moston, New Moston and Newton Heath make up the M40 area. These areas are to the northeast of Manchester city centre, adjoining the A62 road. They have good road and public transport access both into the city centre and to the M60.
These districts have property prices that are well below average. This helps M40 generally offer strong rental yields of 6.73%.
Gorton
Gorton is to the south-east of Manchester city centre. Gorton has very good public transport links by bus and trains into Manchester city centre and is on the A57 offering direct access to the M60 and M67.
Gorton has benefitted from lots of regeneration in recent years. Old tower blocks have been replaced with more modern houses. Gorton is the second cheapest part of Manchester in which to buy property.
Gorton can offer strong rental yields. The average rental yield in Gorton is 6.58% currently.
Hulme
Hulme is an inner city district just south of Manchester city centre. It has benefitted from lots of regeneration in recent decades and offers many newer-build houses and flats.
Hulme is within walking or cycling distance of the centre also the campuses of Manchester Metropolitan University (MMU) and the University of Manchester. That makes it a really popular place to rent with those who work in the city centre and for students.
Hulme property prices are only around the Manchester average. This means strong rental yields are possible. The Hulme average rental yield is 6.48%.
Higher Broughton, Cheetwood, Kersal and Lower Broughton
Higher Broughton, Cheetwood, Kersal and Lower Broughton are suburban districts in the north of Manchester, although technically they are in the city of Salford council area.
The M7 postcode area offers rental yields of 6.33%, which is well above the Manchester average.
Salford Quays
Salford Quays is to the southwest of Manchester city centre and is within the city of Salford council area.
Salford Quays is set around a former docklands area. The area has seen massive regeneration in recent years and is now a new city district with homes, offices, shops, a campus of Salford University and leisure amenities such as the Lowry Theatre and Imperial War Museum North. Media City, best known for the BBC, is also here.
Salford Quays has easy transport links by Metrolink tram into Manchester city centre. The average gross long-term letting yield in Salford Quays is 5.99%.
Blackley and Harpurhey
Together Blackley and Harpurhey make up the Manchester M9 area which also includes Higher Blackley and White Moss. They are in northeast Manchester.
The area has great transport links into Manchester city centre as well as elsewhere on the M60. It is mainly a residential area and is known for its green spaces like nearby Heaton Park.
Blackley and Harpurhey are amongst the top 15 cheapest areas of Manchester in which to invest in property. The average letting yield across the area is 5.96%.
Manchester City Centre (M3)
Manchester city centre is a really popular place for city living and thousands of residents live here. City centre residents benefit from having all the workplaces, shops and leisure amenities the city offers right on the doorstep.
The area of the city centre offering the highest rental yields, according to current data, is the M3 postcode area. This comprises the area to the west of Deansgate including Spinningfields, Castlefield, the Green Quarter and the Blackfriars area of Salford.
Rental yields in the M3 part of Manchester city centre are currently 5.79%.
Ardwick, Longsight and Chorlton-on-Medlock
Ardwick, Longsight and Chorlton-on-Medlock make up parts of the M12 and M13 postcode areas. They are to the south-east of Manchester city centre, which is easily reachable by road and bus.
These districts are good value property areas which have become popular with those looking for an economical place in which to buy or rent. The current letting yield available here is 5.66%.
Droylesden
Droylesden is around 4 miles to the east of Manchester city centre. It is within the M43 postcode and is part of the Tameside local council area.
Droylesden has its own local amenities plus good road and tram access to the city centre and the M60 motorway.
The average rental yield in Droylesden is currently 5.51%.
Wythenshawe
Wythenshawe is on the southern fringe of Manchester and in the M22 postcode area. It includes areas such as Moss Nook, Northenden, Peel Hall and Woodhouse Park.
Wythenshawe has good access to workplaces in the Sharston Industrial Area and around Manchester Airport. It has links to Manchester city centre by road, bus and Metrolink tram.
Wythenshawe rental yields are currently a solid 5.33%.
Atherton
Atherton is north-west of Manchester itself. Atherton is part of Greater Manchester but is within Wigan borough. It is a convenient location for those who work in Wigan or Bolton.
Low property prices here mean strong yields are possible. Presently the average long-term letting yield is 5.14%.
Failsworth
Failsworth is around 3.5 miles to the northeast of Manchester city centre. It is within the M35 postcode and is part of the Oldham local council area.
Failsworth has its own local amenities plus good road and bus links to the city centre and the M60 motorway.
The average rental yield in Failsworth is currently 5.13%.
Ancoats and the Northern Quarter
The Northern Quarter and Ancoats make up the northern part of Manchester city centre.
The Northern Quarter has become a fashionable, bohemian area with independent shops and eateries and city living flats. Ancoats is a former industrial area which has seen extensive regeneration in recent years with new build flats and houses, converted industrial buildings, shops, restaurants and bars.
Together these districts make up the M4 postcode area where the current average rental yield is 5.13%.
Ancoats and the Northern Quarter
The Northern Quarter and Ancoats make up the northern part of Manchester city centre.
The Northern Quarter has become a fashionable, bohemian area with independent shops and eateries and city living flats. Ancoats is a former industrial area which has seen extensive regeneration in recent years with new build flats and houses, converted industrial buildings, shops, restaurants and bars.
Together these districts make up the M4 postcode area where the current average rental yield is 5.13%.
Which Areas of Manchester have the Highest Rental Yields?
According to our latest research, the highest letting yields in Manchester can be found in (alphabetical order):
- Ancoats
- Atherton
- Ardwick
- Beswick
- Blackley
- Cheetwood
- Chorlton-on-Medlock
- Clayton
- Collyhurst
- Droylesden
- Failsworth
- Fallowfield
- Gorton
- Harpurhey
- Higher Broughton
- Hulme
- Kersal
- Longsight
- Lower Broughton
- Manchester city centre (M3)
- Miles Platting
- Moston
- New Moston
- Newton Heath
- Northern Quarter
- Openshaw
- Rusholme
- Salford Quays
- Wythenshawe
Which Postcodes have the Highest Rental Yields?
According to our latest research, the highest letting yields in Manchester can be found in the following postcode areas: M3, M4, M7, M9, M11, M12, M13, M14, M15, M18, M22, M35, M40, M43, M46 and M50.
About Our Data
Property prices, rents and yields are based on figures from property xyz.