Overseas Investors and Landlords: Guide to investing in Manchester
If you’re wondering where to invest in the UK you may have overlooked Manchester. For years, London has been the go-to city for overseas property investments. But it’s now the North-west of England and Manchester more specifically, that has become the fastest growing housing market in terms of house price growth and rental returns.
The high house prices in London have pushed up rental prices and made it a highly competitive market to rent in. In answer to this, Investors and Landlords have looked to Manchester, where house prices are lower and rental returns can be higher, with yields reaching up to 7.6%. Compare this with London’s yields which range from 1.5%-5.3%, which means that if you invest more wisely in the North West you can achieve higher returns.
The increase in demand in the North West has made Manchester one of the emerging markets for property investments with 24% growth expected between 2016-2021. Multi billion pound investments such as HS2 are expected to boost the local economy growth, making Manchester set to increase even further.
Looking to invest? We’ve created a short list with the reasons why you should consider investing in Greater Manchester.
Why invest in Manchester
Manchester Property Market
The market in the North West started strong in 2020 and showed one of the biggest growths of house prices in the UK, YoY these still remain strong. Due to the demand of housing in Manchester and much cheaper prices, the growth between 2020-2025 is still expected to be 24%, meaning rental yields are also set to grow in line with the market.
Rental yields vary from postcode to postcode in Manchester meaning you can expect a yield of between 3-7.6% return.
The UK property market has had it’s ups and downs, however, Manchester has consistently improved in recent years producing higher returns than London, making it the ideal city to invest in now.
Are you looking to buy? Manchester has a range of areas to purchase property, that suit different lifestyles and occupiers. Properties in Didsbury and the outer suburbs serve the Cheshire commuter belt. The city centre has a vibrant and lively atmosphere that’s popular with young professionals and Salford is perfect for hungry investments as it’s currently enjoying a development boom.
Tenants in Manchester
Manchester has one of the largest student communities in Europe, meaning there are lots of houses and apartments aimed specifically towards the student market. The student retention rate of the city is 51%, which means Manchester has more young professionals living in the region than elsewhere in the UK outside of London (ONS).
With the investment in the economy and local businesses, it’s estimated that the population will increase by over 635,000 by 2025, meaning there will be plenty of tenants looking for new homes.
Manchester Housing Economy
The economy in Manchester has grown at a faster rate than the whole of the UK and has injected life into the property market over the past couple of years. Investment in business and infrastructure has created a city in demand and low unemployment.
Plans to connect the north and south with HS2 is expected to connect Manchester to 8 major cities whilst reducing travel time. It is also projected to create around 25,000 new jobs. Regularly attracting large-scaled investments is expected to increase job growth 63,000 by 2038.
The city has promised to create 32,000 new homes by 2025, to ensure the supply is there to meet the demand. This means there will be plenty of properties for sale in areas that have high rental yields.
Manchester is well connected, with a number of major cities only an hour away. In 2019, there were over 65 million train and tram journeys in the city. With both networks expecting an increase in routes, more residents and city workers are moving into the suburbs, which typically have higher yields.
Manchester is a well liked city and regularly voted as the best and happiest place to live. It was recently named the third best city to live in the world in Time Outs happy index.
Full of culture, tourism, sports and a unique style, Manchester continues to attract and retain residents year after year. This is great news for investors and landlords, as it means you’ll always have a healthy amount of tenants for your properties.
With the projected new jobs, investment, infrastructure improvements and increase in residents over the next 5-10 years, Manchester is certainly an area you would want to invest in.
How can homes4u help with your UK investment?
We work with overseas landlords and investors using the same approach we take with domestic ones. We’ll talk you through the processes and understand your objectives. With over 30 years of experience, we know Greater Manchester inside and out, we can recommend where and when to buy, who your property should be attracting, how to maximise your return on investment and much more.
Do you own a property in the UK?
Property management is one of our core services and we have helped a number of overseas landlords increase their returns. If you have a property based in the UK we are able to fully manage this for you, find tenants, complete all relevant paperwork and recommend any areas of your property that need improvement.
Are you up-to-date with UK compliance?
Ensuring you are fully compliant and following the correct regulations is important. Compliance as a landlord or investor changes regularly and it’s easy to miss something important. This could result in a large fine or even loss of property. Homes4u are specialists in compliance and can walk you through the steps to ensure you’re not at fault and your property is fully compliant with UK legislation.
Where should I invest in property in the UK?
If you’re interested in investing in Manchester property but don’t know where to start, speak to the team today and we can advise how to maximise your return on investment.
Head over to our overseas investors and landlord page to learn more.