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All eyes on Manchester – why this northern UK city is exciting property investors far and wide
January 28, 2014Article by Ray Withers
Manchester’s property market is attracting considerable attention from investors currently. Figures from building society Nationwide marked the northern city out as having the fastest rising property prices of anywhere in the UK, with the average house increasing 21% in value in a year. With the third largest city economy in the UK, Manchester has long been an important hub for business, and new developments there are set to make it even more so.
The £800 million, 4 million square foot NOMA redevelopment project is already well underway, creating a stunning new neighbourhood to the north of the city centre. The regeneration scheme includes business, retail and accommodation units as part of one of the UK’s most ambitious redevelopment goals.
In addition to NOMA’s impact on prices in Manchester, the new HS2 rail network, which is set to revolutionise Britain’s Victorian railways, may well also be affecting property prices in the city. With construction due to begin in 2017, smart investors are taking advantage of the market now, before prices rise even further.
One of the most popular types of investment currently in Manchester is the buy-to-let market. Census data shows that 36% of UK households now live in rented accommodation, up from 31% just a decade ago. Meanwhile, rents have increased 13.6% since 2009, according to Rightmove. With many families priced out of the market in city centres, buy-to-let landlords are taking advantage of the heightened rental demand in order to profit from this increasingly popular type of investment.
Property Frontiers’ Chief Executive Ray Withers comments,
“The buy-to-let market is extremely buoyant, with investors looking for strong yielding properties in city centre locations. Manchester is one of the most attractive prospects in the UK at the moment in terms of buy-to-let properties. It’s a dynamic and exciting time to be involved in the private rented sector.”
Time to get involved
Having been identified by Zoopla as the third best yielding city in the UK for buy-to-let properties, Manchester is causing quite a stir amongst those looking to expand their portfolios by becoming private rented sector landlords.
Developments such as the prime city site of Trafford Mill, where stunning, contemporary apartments are available from as little as £115,000, are particularly attractive. The high standard of the redevelopment means that investors do not have to worry so much about upkeep and maintenance costs, as they do with many of the city’s older properties. Investors can also be reassured as to the demand for such modern apartments, which come complete and fully tenanted.
Representing the ultimate hands off investment, Trafford Mill allows those purchasing apartments to sit back and enjoy rental yields of 8% from day one of their investment, while enjoying the potential for solid capital gain. Developments such as this highlight why buy-to-let investments are becoming so popular with investors looking for a secure, hands off means of growing their portfolios.
If you would like to know more about Property Frontiers’ buy-to-let investment opportunities in Manchester, please get in touch for the latest information.