Property investment has consistently ranked high on the priority list for many investors and for good reason. Property has proven to be a resilient asset class, especially during times of crisis, making it an attractive option for those seeking stability and long-term growth. This is particularly relevant for UK investors, given the current uncertainties surrounding the value of the pound and the potential rise in interest rates. Amidst the instability in other sectors of the UK economy, the housing market stands out as remarkably stable. As a tangible asset, housing tends to appreciate in value over time, making it an appealing choice for investors looking for solid returns.
Consider the performance of the property market during the Covid-19 pandemic. In 2021, amidst the challenges posed by the global health crisis, UK property prices experienced the fastest growth rate since 2004. Reports indicated that buyer demand, driven by pent-up demand resulting from three national lockdowns, was twice as high as pre-pandemic levels, showcasing the resilience of the housing market. This underscores the attractiveness of property investment in uncertain times.
Now that you know that property investment is a wise choice, the next crucial step you should take is figuring out where to invest.
Choosing the right location can make all the difference between a successful and a failing investment. According to RWinvest, Manchester, a thriving city in the heart of the North West, emerges as a prime destination for property investment, mainly when targeting the right areas within the city.
Here are the top three benefits of investing in Manchester property in 2023.
One of the key factors driving the growth of property prices in Manchester is its rising population. According to the House Price Index, house prices in Manchester have risen by 6.10% since February 2022, with prices reaching £231,110 in May 2023. This growth can be attributed, in part, to the increasing population in the city and the subsequent surge in housing demand. Manchester’s population has grown by approximately 60,000 (from 2,710,000 to 2,770,000) between 2018 and 2022, and it is predicted to continue increasing, with estimations that the population in Manchester will rise by 56,000 by 2034.
For investors looking to invest in buy-to-let properties, this population growth ensures a steady stream of potential tenants for the foreseeable future. With a growing number of people seeking housing in Manchester, the demand for rental properties remains strong, presenting an excellent opportunity for investors to capitalize on the rental market.
Manchester has experienced a significant and steady influx of population over the past two decades, primarily due to its commitment to regeneration. Notably, the £1.5 billion Spinningfields regeneration project has attracted numerous investors. Additionally, several planned developments are in the pipeline, including the estimated £800 million NOMA project in the North of the city and the redevelopment of the Northern Gateway, expected to be worth nearly £1 billion. These ongoing and planned regeneration initiatives present unique and affordable investment opportunities for property investors.
Regeneration efforts have not only enhanced the infrastructure and amenities of the city but also driven-up property values in the surrounding areas considerably.
Investing in properties situated in or near these regeneration zones can potentially yield significant returns as the sites continue to develop and attract more residents and businesses.
Rising Student and Young Professional Demographic
Manchester, renowned for its prestigious universities and thriving industries, has become a sought-after destination for property investors, particularly in the buy-to-let market.
The city is home to over 100,000 students, with a significant portion concentrated in the heart of the town itself, making it an excellent choice for both residential and student property investments.
Investing in student accommodation in Manchester City Centre presents a compelling option for property investors, offering higher rental yields and lower average house prices compared to residential properties. The appeal of Manchester extends beyond the student demographic, as many graduates are choosing to stay in the city to develop their careers instead of flocking to London, which was once regarded as the go-to destination for young professionals. The high cost of living in the capital has led many individuals to seek alternatives elsewhere.
Manchester’s vibrant business landscape, encompassing established companies and burgeoning start-ups, provides ample opportunities for young professionals to thrive in the city. Consequently, there is a noticeable presence of young professionals in Manchester, creating a strong demand in the housing market that investors can capitalize on. In fact, around 51% of graduates choose to remain in Manchester to pursue their careers, further reinforcing its appeal as a long-term investment destination.
Moreover, Manchester offers a more affordable cost of living compared to London. According to Numbeo, consumer prices, including rent, were approximately 32.31% lower in Manchester than in the capital city. This affordability factor, coupled with the desire to escape the high expenses of London, has prompted a considerable number of individuals to migrate from the capital to Manchester, with approximately 13% of inhabitants making the move up North.
In summary, Manchester’s thriving educational institutions, robust job market, and attractive property market make it an enticing choice for buy-to-let investors. The city’s ability to retain graduates and its lower cost of living compared to London is monumental, and undoubtedly contributes to its appeal as a prime-time long-term investment.
With a growing population of students and young professionals, Manchester offers a fertile ground for investors to seize opportunities and capitalize on the city’s potential.
With solid rental yields, promising growth, and a favourable investment climate, Manchester offers nearly everything a property investor should seek in 2023. As the population continues to grow, regeneration efforts reshape the city, and the demand for rental properties remains strong, investing in Manchester property presents a compelling opportunity.
However, it’s essential for investors to conduct thorough research, seek professional advice, and stay updated on market trends to make informed investment decisions. By doing so, investors can position themselves for success in the dynamic and lucrative Manchester property market.