While the property market in the UK has witnessed a period of instability or stagnation in recent years, with arguments surrounding Brexit, political ineffectiveness and a slowing economy dominating the conversation. Property prices in Manchester have witnessed against the grain growth.
Previously part of the industrial heartland of the UK, today Manchester is one of the most exciting places to live and work, with new businesses, entertainment facilities and most importantly young professionals looking to the city for new, modern employment opportunities. The growth in the city’s population and opportunities in Manchester had a direct impact on the buy-to-let rental market, with the overall sector growing by 7% between September 2017 and September 2018.
With considerable growth in the buy-to-let rental market, future investors will be looking to know where to invest their money in the future. Using SOLD.co.uk new interactive property map of the city, this article is going to explore that very question.
Manchester House price Growth.
Using Sold.co.uk new interactive tool, which maps property prices across the city using the Manchester Metrolink, the core public transport option for commuters. The research provided by Sold.co.uk saw property prices across the network recorded an average increase of £44,448 between 2014 and 2019.
With several factors at play, the growth in the property market is heavily attained to the Northern Powerhouse Scheme, which was introduced in 2014, recording £1.6bn invested in Manchester so far. With a distinct focus on connectivity, infrastructure, innovation, the Northern Powerhouse Scheme skyrocketed Manchester into the global city the north of England has been searching for.
The growth in the property market hasn’t been limited to a single region or zone in the city, growth in property prices has been relatively universal. Whereas in other major cities such as London witness distinct investment in a single borough in the centre of the city, Manchester has seen the growth in the market across all four corners of the city.
But where should investors focus their attention?
In short, there is no golden answer where an investor will receive above and beyond returns for investment. But there are three extremely popular areas that are worth considering.
There is no doubt you have heard about the exploits of Salford. Previously seen as an ‘up and coming’ area, Salford today is part of Manchester’s identity and the gleaming example of successful development.
It would be wrong to say Salford didn’t have fantastic potential for investors. Close to the city centre, home to many businesses, namely the BBC and ITV, the competition for property between professionals is extremely high.
Using data from the research, future buy-to-let investors can expect to see average property prices of between £193,089 (Salford Quays), £168,607 (Anchorage) and £147,000 (Exchange Quay). With some of the cheapest property across the Manchester Metrolink network, although it is a central location, the possibility for future investors is great.
The rental yields in Salford are some of the best across Manchester, with ‘simple’ buy-to-lets recording 7% or 8% yield. Landlords can expect an average rent of £800-£1000 per calendar month.
At the opposite side of Manchester, Tameside provides landlords with some of the best rental yields across the city. With a fantastic amount of affordable properties ranging between £143,947 (Ashton-under-Lyne) and £181,500, Thameside finds itself a draw for investors, especially as it has such easy access to transport routes into the centre of Manchester and job opportunities.
While it is further outside of the city centre than Salford, investors should not turn down the potential future returns on offer.
Looking at the potential investors’ opportunities in a slightly different light, Sale offers opportunities for those looking to buy and sell on. Between 2014 and 2019 sale witnessed a growth rate of 29.3% increase the average property price to £641,000. Although the area has some of the highest property prices across the city, the area is continuingly witnessing considerable growth in the local property market.
For those looking to rent a property, landlords can expect a rental yield of between 5-8%, with an average rent between £700-£900 per calendar month.