Are you looking for a place to invest in property in Manchester? We know how overwhelming it can be to know if you’ve nailed the location. Look no further! Our guide will provide you with all the information you need to know about investing in Manchester property.
In a rush? Key summary
- Manchester’s rental yields and property prices are continuing to rise, making this a lucrative market to invest in.
- Buy-to-let locations that are worth investing in include Ancoats and Salford.
- Those looking at home ownership may want to consider areas such as Didsbury and Sale.
- Some areas of Manchester have slightly higher crime rates but they are still worth considering for investment in some instances.
Is it good to invest in property in Manchester?
Investing in property in Manchester can be a smart move for a variety of reasons. Here are just a few key reasons why this city is such an attractive destination for property investors:
1. Large Student Population and Education
Home to several prestigious universities, including the University of Manchester, there are over 100,000 students in the city, meaning there is a constant demand for student housing.
2. Excellent Amenities
Manchester has a thriving cultural scene, with a range of museums, galleries, theatres, and music venues as well as plenty of dining options. The city is also a shopping destination with everything from high-end designer boutiques to quirky independent shops. For the football fanatics, the city is home to two of the world’s biggest clubs- Manchester City and United.
3. Ongoing Regeneration
Manchester is undergoing a period of significant regeneration, with billions of pounds being invested in the city’s infrastructure, public spaces, and housing developments. Areas such as Ancoats, Salford Quays, and the Northern Quarter have all undergone extensive redevelopment in recent years, and there are many more projects in the pipeline.
4. Strong Economy and Employment
Manchester has a strong economy with key industries including finance, media, and technology. These sectors have helped the city maintain a relatively low unemployment rate in comparison to other UK cities.
5. Excellent Transport Links
Manchester has strong transport links, both to the UK and internationally. Manchester Airport is one of the busiest airports in the UK, offering direct flights to destinations all over the world. The city is also well-connected by train, with regular services to London and other major UK cities, and the planned Northern Powerhouse Rail project will only serve to strengthen this further.
Manchester's Rental Growth
Manchester’s property market has experienced significant growth in recent years, and this growth has extended to the rental market as well, with Manchester being one of the fastest-increasing rental growth cities in the UK with rents increasing by as much as 38% in some desirable parts of the city.
Rental yields are at an average of 5.5%, which is much higher than the national average, and it is these yields alongside the potential for capital appreciation that are driving the significant growth of the Manchester rental market.
This market is only expected to grow in the coming years, as the city’s population is projected to increase significantly over the next decade which means that there will continue to be strong demand for rental properties in Manchester; something that will be hugely appealing to buy-to-let investors.
Up and coming investment areas in Manchester
If you are looking for a buy-to-let property in Manchester, location will be key. The city is known for having many different, and unique areas with potential for investors. We’ve summed up the ones that are definitely worth considering in 2023:
| Location | Average Rental Yield |
|---|---|
| Ancoats | 7.4% |
| Northern Quarter | 8.22% |
| Levenshulme | 11.26% |
| Salford | 8.22% |
1. Ancoats
Average rental yields: 7.4%
Once a rundown industrial area, Ancoats has undergone significant regeneration in recent years and property prices have risen rapidly. Now a trendy neighbourhood with a thriving food and drink scene, the area boasts a mix of converted mills, new build apartments, and townhouses, making it an attractive location for both young professionals and families. This is one to watch!
2. Northern Quarter
Average rental yields: 8.22%
The Northern Quarter is a bohemian part of the city known for its independent shops, cafes, and bars. Popular with young professionals and creatives, there is always a high demand for rental properties in the area. While property prices in the Northern Quarter are already relatively high, there’s still room for growth as the area continues to attract new businesses and residents.
3. Levenshulme
Average rental yields: 11.26%
Levenshulme is a diverse and vibrant area located that is home to a range of independent businesses. With its strong community spirit, it is an up and coming area that’s attracting a lot of attention from property investors, thanks to its affordable property prices and proximity to the city centre.
4. Salford
Average rental yields: 8.22%
Salford is an area that’s seen a lot of regeneration in recent years, particularly around Salford Quays, which is now home to MediaCityUK, the headquarters of the BBC in the North. There are plenty of new build developments in the area, excellent transport links, and a range of cultural attractions, as well as some more affordable older properties that are ripe for renovation.
5. Rusholme
Average rental yields: 6.59%
Located just south of Manchester city centre, Rusholme is a diverse and multicultural area. It’s well-known for its “curry mile,” a stretch of Wilmslow Road that’s home to dozens of Indian, Pakistani, and Middle Eastern restaurants. Property prices are already high here but there is still room for growth.
Best areas in Manchester to buy a house
When looking at where to buy a house in Manchester in 2023, there are some great locations to choose from whether you are moving as a family, young professionals, or even wanting a retirement pad. Here is a table of some of the best areas to consider:
| Location | Average Property Price |
|---|---|
| Didsbury | £357,985 |
| Chorlton | £362,068 |
| Altrincham | £510,690 |
| Sale | £388,050 |
| Prestwich | £289,494 |
1. Didsbury
Average property price: £357,985
Didsbury is a popular and affluent suburb located just a few miles south of Manchester city centre, known for its tree-lined streets, independent shops, trendy bars, and restaurants. The wide range of property types available in Didsbury, from Victorian terraces to modern apartments, make it appealing to many.
2. Chorlton
Average property price: £362,068
Just south of the city centre, the suburb of Chorlton is a hugely desirable space to live. The area is known for its vibrant community, independent shops and cafes, and green spaces, including Chorlton Water Park.
3. Altrincham
Average property price: £510,690
Around ten miles south of the centre of Manchester, Altrincham is a thriving market town that is known for its historic buildings, independent shops, and excellent schools, making it a popular choice for families.
4. Sale
Average property price: £388,050
Situated around 5 miles from the city centre, Sale is a desirable location thanks to the excellent selection of schools, strong transport connections, and wide range of property types to suit various buyers.
5. Prestwich
Average property price: £289,494
Sat north of the city centre, Prestwich has an excellent variety of independent shops alongside good schools, and quirky cafes. It also has good access to plenty of green spaces making it ideal for families.
Areas to avoid in Manchester
As with any city, there are some areas in Manchester that have higher levels of crime and social deprivation than others, but it is important to note that the city has undergone significant regeneration in recent years with many previously run-down areas, being transformed into desirable locations to live.
Of course, safety is an important part of purchasing a property whether that’s as a landlord or a homeowner and some research is always necessary before committing to buying somewhere. There are some neighbourhoods in Manchester that have slightly higher levels of crime or social issues including parts of Moss Side, Harpurhey, Cheetham Hill, and Longsight.
Here’s a helpful chart detailing the crime rates in these cities:
| Neighborhood | Total Reported Crimes |
|---|---|
| Moss Side | 2,376 |
| Harpurhey | 1,459 |
| Cheetham Hill | 1,218 |
| Longsight | 1,036 |
Although crime rates can be higher in these locations, that doesn’t rule them out entirely but it can be a risk. Crime rates and safety levels will vary throughout these areas and it is always a good idea to speak with the local community and estate agents before making an investment decision.
Conclusion
Manchester is a vibrant and exciting city with a strong economy, a diverse population, and a rich cultural heritage but it can be hard to know which areas of the city are worth investing in.
Our guide to investing in Manchester property will certainly give you some guidance but we’re here to make the process even easier for you, so whatever your property investment requirements are, from compliance to the best areas to buy, get in touch to see how we can help!
