Capital & Rental Growth in Salford

To help demonstrate the level of growth seen around Salford, it is useful to compare how the area has performed against other UK property destinations. You might be surprised to know that Manchester has had the highest 20-year growth rate of any UK city (378.96%!), outperforming London and demonstrating why it earned its Northern Powerhouse title.

This year, Salford has been revealed as having the biggest return on house value in the North West, increasing by an average of 47.6% over the last five years, according to interior design magazine Homedit. That’s 24% above the national average!

Request more information about our new Salford development, Berkeley Square, here.

Average rental yields across the UK are around 4.5%, and between 5-6% is considered a strong performance. In Manchester, yields currently sit between 5-7% and in some areas, for example in the M5 postcode of Salford, you can find returns of 10% and higher. 

Train driving out of Manchester and into Salford.

Is growth likely to continue?

 

Based on Savills Residential Property Forecast 2022, property prices in the North-West region are set to increase 24.3% in the five years to 2026.

A property valued at £195,000 today would be worth £242,385 in 2025 based on these projections. Salford has undergone significant regeneration in recent years, capitalising on its unique identity to provide real benefits for its growing populations.

Key achievements include:

+ £550 million of development for MediaCityUK at Salford Quays
+ The start of works to build Port Salford which is set to create over 1,000 jobs during its first phase
+ £26 million of development for Salford City Stadium
+ The completion of Greengate Square, which is set to be the catalyst for £400 million in private sector investment
+ The revitalisation of key areas along Chapel Street and the riverside corridors of the Bridgewater Canal and the River Irwell

 

Is there high rental demand in Salford?

 

There has been a significant growth in Salford’s population over the last 10 years. This is forecast to continue, with an expected 20% growth by 2035. According to Zoopla, rental increases have hit a 13-year high!

MediaCityUK in Salford lit up at night.

Is there a shortage of rental stock?

 

The latest research from Gerald Eve found that Greater Manchester has underbuilt by a total of 32,200 new homes since 2011 and needs to build a further 164,880 by 2037 to meet demand. With 21% of the city’s population renting in the private sector, it is estimated that up to 40,000 new rental homes are required in the next 15 years.

Young professionals are looking for high-specification, modern apartments that are close to transport links, bars, restaurants, and green spaces. In Salford, there is a shortage of this accommodation type.

 

Are rents rising and likely to continue increasing?

 

Rents are forecast to rise around 17% across the UK over the next 5 years.

 

Speak to us!

For more information on Berkeley Square, or the buy-to-let process, call one of our investment experts on 01942 251 945 or email sales@heatongroup.co.uk.


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