Where in the Manchester property market should you invest?
Manchester is undoubtedly one of the hotspots in the property investment market at the moment – and that looks set to continue.
A great combination of affordable properties, strong rental yields and increased desirability of the area makes it an excellent choice for investors.
Separate reports from estate agents HouseSimple and property group JLL name Manchester as one of the places most likely to see rising house prices over the next decade.
Even in the booming North West of England, Manchester looks set to outstrip the surrounding area to offer incredible return on investment for those putting their money in property.
This is all in the context of a very strong British property market that already looks like a strong investment. 2016 is the year to invest in Manchester, and here’s why:
Why is Manchester a great place to invest?
With many investors concluding that London no longer offers a good rate of return, some have begun looking elsewhere for cities with great growth potential. Manchester certainly offers that. With a total of £8.2b of investment over the last decade, Manchester leads the UK outside of London in property investments.
And while the city is already benefitting from a huge range of development schemes, the area is also set for significant investment as a part of the government’s famous Northern Powerhouse plan.
Manchester is considered to be the centre of the Northern Powerhouse and looks set to enjoy favourable taxation and a range of increased local government powers.
And while this all indicates that Manchester looks like a great place to invest, where exactly should you put your money? Some would argue that the returns available in luxury city centre accommodation are too tempting to pass up, while others are looking to the growing strength of Manchester’s commercial and retail areas as a great bet for property investment.
Whether you’re just starting out in property and are looking to build up a base, or you’re simply looking to expand your portfolio, it will always help to be well informed. Let’s have a look at some of the smartest places for you to invest in the city.
In 2015 Manchester was once again voted the best place to live in the UK in a global survey by the Economist Intelligence Unit. And moving into 2016, Manchester is becoming one of the most desirable places to be in the UK.
We have already looked at the effect the Northern Powerhouse investment is likely to have on the city and when you combine that Manchester was already seen as an upcoming destination, this has led to many of the postcodes around the city becoming truly prestigious and sought-after.
There is a growing demand for luxury properties at the city centre – and this is a brilliant place for you to invest. Manchester is now one of the commercial hubs of the UK with a thriving entrepreneurial atmosphere taking hold.
Add this to the range of restaurants, bars, museums, galleries and shops in the city centre and it’s easy to see why there has been an influx of young professionals who want to live in high quality, well-located properties.
It’s also true that there has been a huge increase in interest in many of Manchester’s suburbs. A report from LendInvest and Zoopla has named Ardwick, Longsight, Little Hudson and Chorlton-on-Medlock as areas with the best buy-to-let yield.
Now is definitely a great time to be investing in popular places to live in the city. Demand in the top areas only looks set to grow as more people move to the city looking to take advantage of the great quality of life here.
A growing commercial sector
The property market extends beyond residential investments and increasingly Manchester looks like a fantastic place to invest in commercial or retail spaces. If you have never considered investing in offices, Manchester could be the perfect place to start.
Foreign investors are now beginning to see the potential of Manchester’s office and commercial property market with reported purchases from Chile, South Africa and the Middle East over the past few months. When investors from all over the world are choosing Manchester as a place to put their money, it’s a great sign that this market is very strong.
With the business sector thriving and additional state investments expected over the coming years, Manchester’s commercial property looks to be an excellent medium to long-term investment as the market continues to grow at a steady pace.
Yields in commercial property are now beginning to match those excellent returns that have been seen in the residential market. Data from JLL suggests that over the 12 months to June 2015, UK office rents increased by an average of 4.3 per cent, while in Manchester there was a more significant rise of 6.5 per cent.
Buy-to let student properties
Manchester is an enormously popular destination for students. Across Manchester’s four universities there are more than 100,000 students and thousands more in colleges and other learning institutions – this means it has the largest student population in the country.
This creates a very strong demand for lets in the city, especially in areas close to the university campuses including just south of the city centre and in Salford. If you are thinking of investing in buy-to-let properties it can be very smart to buy in areas that are popular for students.
The high demand for rented student properties mean that rates are very attractive to investors. Indeed, a recent survey from HSBC showed that landlords in Manchester receive the best rental yields in the country.
When you combine this with the fact that house prices remain comparatively low, it’s easy to see the enormous potential.
Article provided by Mike James, an independent content writer in the property industry – working alongside a selection of companies including London based investment specialists Prime Centrum, who were consulted over the information contained in this piece.
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