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Manchester buy-to-let investors enjoy highest rental yields in Britain

May 28, 2015Article by Charlotte Ashton

New data released by HSBC has shown that Manchester is Britain’s top hotspot for buy-to-let property, offering the highest yields of any area of the UK. The annual HSBC analysis looks at property prices and rental demand across the country.

Manchester tops the table

At the top of the table with average yields of 7.98%, Manchester is notable not only for its excellent returns but for the size of its private rented sector. According to the HSBC figures, 26.85% of housing stock in the city is privately rented. This is well above the national average figure of 18%, as recorded by the most recent English Housing Survey (for 2012/13) and means that investors in buy-to-let property there can enjoy strong demand from tenants for their rental property.

With such a booming buy-to-let sector, competition for the most attractive properties is fierce. One of the most exciting developments is Custom Quay, located just 15 minutes by tram from Manchester city centre, in the popular Salford Quays area. The development is set to be a prime target for professionals working in the city but looking to live somewhere more salubrious.

With a landscaped courtyard and communal rooftop terrace with superb views over the quays, Custom Quay offers superior accommodation at an excellent price: one bedroom apartments can be purchased from just £127,000. Two bedroom duplex apartments are also available, some with their own private entrances and two parking spaces.

In line with the HSBC report, Custom Quay has an expected yield of 8.4%, this having recently been revised upward in the wake of two independent market appraisals.

A haven for professional tenants

Ray Withers, Chief Executive of leading property investment specialists Property Frontiers, comments on the development,

“Custom Quay is going to be one of Manchester’s most enticing buy-to-let investments. The apartment design is just stunning, with large windows and skylights filling the building with light. The communal roof terrace will also be fabulous, offering panoramic waterside views – the perfect spot to unwind after a long day working in the city.”

Developments like Custom Quay offer a haven for the modern professional tenant. Priced out of the housing market, these tenants look to the rental market to provide stylish, luxurious homes that they can enjoy over the long term. This is excellent news for buy-to-let landlords, as professional tenants committing to lengthy stays offer the kind of stability that keeps yields high and reduces void periods.

The HSBC data will no doubt trigger a fresh wave of investment in Manchester, as landlords look to snap up Britain’s best yielding properties. Those interested in Custom Quay will need to act fast though – only limited units remain available.

For more information about leading buy-to-let investment opportunities in Salford Quays and across the UK, contact Property Frontiers or call +44 1865 202 700.

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