Why Invest in Manchester?
Manchester, a buy-to-let hot spot offering great yields for investors!
Why invest in Manchester? Here we look at the various reasons why property investors, should invest in Manchester. In 2015, Manchester was voted HSBC’s number one Buy-to-Let Hotspot for 2015. Citing the highest average yield in the country, 7.98% within the residential property. Therefore, Manchester’s popularity as a place for property investment has risen. More and more clients are now searching properties for sale in Manchester. Another reason why to look at Manchester for investment is as property prices in London have been rapidly rising increasing in recent years, the yield, which is the income as a percentage of the purchase price, has fallen. Consequently, yields in Manchester are far higher than those achievable in London. As property prices in London have been rapidly rising increasing in recent years, the yield, which is income as a percentage of the purchase price has dropped. Investors now are buying property in the regions such as Manchester, Liverpool, Leeds, etc to get a higher yield than they would in London.
Manchester is the second largest economic area in the UK, second only to London. It is becoming an increasingly attractive investment option, with a population of 2.6m Greater Manchester is the Economic Powerhouse of the North.
Extensive regeneration programs have transformed the city. The financial services, technology, broadcasting, engineering and media industries all have prominent roles in Manchester’s growing economy. In recent years Manchester has become the UK’s Media Hub and recently, the BBC (British Broadcasting Channel) has relocated to Media City in Salford Quays. Media City is now the home of the BBC and ITV, Granada. Therefore we have seen, a mass migration brought skilled workers from London to Manchester. As a result, there has been a real catalyst for investment in the region. The BBC’s move to the area contributes almost £300m per year to the economy, show estimates. The Media City Hub and contribution of the BBC is an integral part of the Chancellor George Osbourne’s plans for the ‘Northern Powerhouse.’
Excellent connectivity is another compelling reason to invest in Manchester. The city has great infrastructure; well connected by road, rail and air. Manchester International Airport is the UK’s largest airport outside of London and 20million passengers pass through to over 200 destinations, including Dubai, China, New York, and Hong Kong. Furthermore, £1bn investment into the expansion of Manchester International Airport has been announced; this will additional capacity will allow an extra 10m passengers per year and will connect Manchester to more destinations around the world. Transport links by rail are also extremely good. Manchester has five rail stations serving central Manchester and linking with the Metro link rail tram service throughout central Manchester. Manchester is the Northern Hub of the UK’s rail network and has direct train links to key cities, including a 2-hour service to London. Additionally, another key reason to invest in Manchester is the construction of HS2. The High-Speed rail network will connect the Northern Cities of Manchester and Leeds to London via Birmingham. Therefore, this will half the journey time from Manchester to London.
Continual Development and investment into Manchester
The continual development demonstrates the real buzz around investing Manchester. With the ongoing Government investment into Manchester and future connectivity being so quick; some big multinational businesses’s are anticipated to follow the BBC and relocate to Manchester. Furthermore, Manchester is already home to 70% of the FTSE 100 Companies attracting many more multinational companies to set up in the city. Therefore, Manchester already has well-established business hubs such as Spinningfields, Trafford Park and Media City. All of which are gaining in International reputation. Therefore, as this shift occurs, the demand for suitable accommodation rises. Ths is a key market driver that fuels property price growth. Manchester represents an excellent opportunity for savvy investors seeking capital gains and good rental returns. Demand for rental accommodation and lack of housing stock has led to Manchester reaching record occupancy rates, which is great for buy-to-let landlords. Estimates show that 27% of housing stock is privately rented. Another compelling reason to invest in Manchester is the continual government investment and strong demand. Which highlight the strong prospects Manchester’s property market. Moreover, HSBC selected Manchester as being the number 1 UK city for property investment in 2015, reporting the highest rental yields in the country at 7.98% and a strong rental demand. Therefore, Manchester far outperforms London. The Capitals Hotspot Newham, East London, provided investors yields of 5.2%. Second on the list of London Yielding boroughs was Southwark. Therefore, Manchester is an excellent location for astute investors seeking property investments that will outperform London property market.