Manchester may be the sixth largest city in the UK, but its thriving economy catching up with London has many calling it Britain’s second city. Investors are hitching onto the trend and heading to Manchester for their next buy to let ventures, with a number of aspects influencing its property market.
There are presently 2.7 million people living in the borough of greater Manchester, and this figure is estimated to rise by 0.83% by 2020. The city centre population in particular stands strong at 530,000 people, experiencing a huge surge in growth since 2002 of over 149%.
This positive increase is having an effect on tenant demand in the area, with the population outstripping supply of accommodation. The unique shape of the market means that investors purchasing modern apartments in or close to the city centre are pretty much assured to have residents flocking to their doors.
More individuals from both the UK and overseas are moving to the central urban zone as Manchester catapults itself into regeneration. Transformed from a purely industrial economy into a knowledge, business and culture intensive destination, Manchester has undergone a successful diversification. Now offering a wealth of opportunities in terms of living, working and studying, it’s unsurprising that the population should increase so rapidly in this triumphant metropolis.
The culture already in place for years has been embellished with recent regeneration schemes to mix the old with the new. Tired, vacant warehouses have become classy food markets whilst museums, art galleries and libraries showcase historical exhibitions in architectural gems. The Northern Quarter has established itself as a shabby-chic district for hipsters which contrasts with the stylish cafés, bistros and bars further into the centre.
Sophisticated business quarters like the £1.5 billion Spinningfields house financial companies that provide jobs to hundreds of local professionals. Additionally, MediaCityUK is an area dedicated to digital industries with firms like the BBC putting Manchester on the map for TV and media corporations. It’s set to double in size in the next decade in a billion-pound regeneration project. Deansgate is another key location where an office development worth £45 million is currently under construction and due to complete in summer 2019.
There are also 3 universities which attract over 100,000 students. Between the University of Manchester, Manchester Metropolitan and nearby Salford University, students have access to a number of courses and modern learning facilities. Millions have been injected into the educational institutions in the form of a £56 million maths building, £38 million biotechnology lab and a £31 million humanities hub to name just a few key innovations.
On top of the potential for tenants and the billions of pounds being thrown at Manchester’s renaissance, rental yields are reaching amazing highs across the city. Student hotspots and areas in and around the city centre zone come out on top, yielding returns of 8% and more.
The fact that there isn’t enough housing to keep up with a steadily increasing population helps to assure these yields and the price of property is also being affected. Manchester property values are going up as it becomes a more desirable location for living in the UK. Those who invest now will see capital growth on their properties that make way for easy and lucrative exit strategies. For more information on buy to let investment opportunities in 2018, contact RWinvest on Tel: +44 (0)151 808 1250, via Email: email@example.com or visit the website at: https://www.rw-invest.com.