Recent studies indicate that Manchester is closing the gap and catching up with London, which is currently the UK’s buy-to-let hotspot. With average rents in London set to fall by between one and two per cent, landlords are struggling to compete with cities such as Manchester.
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Economy
With an economy of over £59bn, Manchester’s economy is growing faster than any other in the UK and is now the largest outside London. With 105,000 businesses, 1.4 million employees, 7 million commuters and 96,200 students, there is a massive building boom and demand for rental properties in and around the city. With Manchester’s continued strength in the rental market, urban regeneration programmes and improvements in the transport infrastructure, investors are moving up north with a view to cashing in on the excellent buy-to-let potential and investment options.
Investment
There are two main reasons investors would be keen to get in on the act in Manchester at the moment. Firstly, they get the monthly rental income, with Manchester’s very large student base making it easy to let properties very quickly. Secondly, the capital growth on the property currently stands at around 8.34 per cent – the highest anywhere in the UK.
Media
Besides the student base, Manchester has the biggest tech and creative centre outside London: MediaCityUK. This 200-acre development has lured young professionals from the city to live and work in a more affordable area. With over 60,000 people working in the digital and creative industries in Manchester, this sector is predicted to double in size by 2034.
Landlord
From a landlord’s perspective, students represent a lucrative rental opportunity. With rent subsidised by student loans and parents becoming guarantors, students are reliable tenants. Students usually arrange their accommodation well in advance – sometimes as much as six months – so the landlords know they won’t have any void periods. They also have opportunities for cheap landlords insurance, with specialists such as https://brokersdirect.co.uk/?product=landlords-insurance offering discounted insurance on both property and contents.
Why would you want to invest in Manchester? It has a fantastic environment for business and is a world-class city that offers people an exceptional place to live and work. It has a brilliant airport and transport infrastructure, and has attracted an incredible pool of talented people who will become tomorrow’s pioneers and creative geniuses.