With increasing focus on London’s rising rental prices, should you be focusing on researching property prices in the South? We think not.
Here are 10 reasons why the Greater Manchester housing market presents the perfect opportunity for buy-to-let investments:
- Manchester - London In 67 Minutes
If you haven’t heard, HS2 is coming. The 250MPH, 1100 seat, high-speed rail network is set to be ready in 2026 (first phase), and will effectively cut travel times between Manchester and London in half. This £42.6bn scheme will not only mean easier commutes to and from Greater Manchester but will further stimulate economic growth in the Northern capital.
- Greater Manchester Property Values Forecasted 26.4% Growth
According to property advisor, JLL, housing prices in Greater Manchester are expected to increase by 26.4% over the next 5 years, with 5.5% forecasted growth by the end of 2016. Research from their new Northern Renaissance report supports this claim, suggesting that the growth is down to the 4.3% population growth in the next 5 years.
- Increasing Demand For Rental Properties
Manchester City Council's population analysts forecast the city’s population is likely to hit 625,000 by 2025 - a rise of 20%. This means that whilst Manchester might have one of the fastest growing populations in the UK, it’s also said to have one of the lowest levels of housing units. For short-term at least, this results in surging rental prices and capital growth as prospective tenants and house buyers fight for a decreasing number of housing spaces.
- Graduates Are Staying Where They Are
Manchester is home to 60% more 25-29-year-olds than anywhere in the country. This is down to the universities providing a steady stream of newly qualified young professionals ready to fill corporate vacancies arising from the economic growth opportunities. This gives potential investors the high-rental opportunities to target those who are preferring to rent accommodation or are unable to access the property ladder.
- Manchester's Rental Prices Growing Faster Than London’s
Research conducted by HSBC found that Greater Manchester was identified as the UK’s buy-to-let hotspot. This research showed average returns of 7.98%, which exceeded that found in any other UK city. HSBC also found that average returns had grown 6.02% since 2010, compared to a 4.71% rise in London’s highest yielding borough.
- The Northern Powerhouse
Dubbed ‘the Capital of the North’, Manchester is also fast becoming the capital of the Northern Powerhouse. An initiative that was first suggested by ex-chancellor, George Osborne, in 2011, the main aim is to create a collective of Northern cities to rival that of London and the South-East. Overall, it hopes to address the economic imbalance shown by the North-South divide, attracting investment to Northern cities and towns.
- Short-Term Let Opportunities
Greater Manchester sees 1.15 million international visitors every year - equating to roughly £7.5bn in the tourism economy. This means that, as the UK’s third most popular city for international guests, there is plenty of opportunities for investors to rent properties on a short-term letting basis.
- Schools and Universities
Manchester has one of the largest student populations in Europe, there are around 96,200 people studying at five HE institutions across Greater Manchester. Alongside this, there are more than 20 universities within a one-hour drive from Greater Manchester, accessing a further 400,000 students. As a result of this swell in student population, there is increased demand for suitable housing and student properties in the area.
- Job Growth Rate
Reported in 2015 as one of the cities with the highest job growth rate, Greater Manchester showed a 47% increase in job advertisements in Q2. This was compared to the 42% shown by London in the same quarter. This research estimates that 70,000 new jobs will be created in the financial and professional services by 2025.
- Named The Best City To Live In
Finally, Manchester was named as the best UK city to live in for the second time running, beating London by 1.6 points. The survey ran by the Economic Intelligence Unit scores 140 cities out of 100 by healthcare, education, etc. and aims to highlight those who show themselves as being a safe, friendly place for tourists and locals.
Whether it’s the HS2 transport development, the ever-growing student population, or the Northern Powerhouse initiative, Greater Manchester is fast becoming a wise development choice for many buy-to-let property investors. Teamed with the forecasted growth in rental revenues and property valuation, is this really an opportunity that you can afford to miss?