Quality of Life
The Global Liveability Survey was conducted by the Economist Intelligence Unit, to rate cities according to health care, education, stability, culture, environment and infrastructure. (2)
Moreover, in a recent Telegraph article, it was reported that the average property price in Manchester was around £110,000, with an estimated rental yield of 7.98%.(6)
Andrew Stokes, Chief Executive of Marketing Manchester, “Manchester has been on an upward trajectory for the best part of two decades now and wherever you look there is evidence of huge positive change helping to make life here significantly richer.”
Manchester boasts a huge student population, a vibrant night-life and many tourist attractions which helps to financially support the city and add it the rising rental demand in the area.
Mr Stokes continued: “We’ve got award-winning museums and galleries, a packed calendar of theatre and cultural events, a burgeoning food and drink sector and class sports institutions like Manchester United and Manchester City throwing a global spotlight on to the city each weekend.’ (2)
It comes as no surprise to many that Manchester is a desirable place to live for both families, students and professionals alike.
For serious property investors, Manchester offers good sized properties at attractive prices. The average house price has increased by 4pc from £104,244 in 2014 to £108,870 in 2015, but is still far cheaper than the average one bedroom apartment in London. (1) Rental demand is far higher in the capital, but with the average property fast approaching £500,000, most buy-to-let mortgage lenders require at least a 25% deposit. (6)
Greater Manchester has experienced great economic growth, large-scale expansion of the private sector and improved transport links to the capital, making it a highly attractive investment opportunity. With an estimated population of 2.6 million, the UK’s largest metropolitan areas provide not only an abundance of potential investment projects but also a vast and varied rental demand. (3)
In fact, the Prime Minster David Cameron has recently visited a number of key businesses and enterprises around the world, encouraging people to invest in the UK’s Northern Powerhouse, in an attempt to rebalance the economy in the UK. (4)
According to the Manchester Business Survey 2014, more than a quarter of employers in Manchester (28%) reported an increase in the number of staff employed at their site in the last 12 months, the same proportion as in 2013 (28%). The report also found that communications technology companies and professional and technical services were the most likely sectors to increase in employment. (5)
Manchester has the largest student population in the UK. The student rental demand group seek high quality accommodation within a comfortable commuter distance to the three universities in the city. Property investors who are looking to invest in Manchester, should consider catering to this market by providing high quality HMO buy-to-let properties close to good transport links to the city. (1)
Outside of the capital, Manchester is the largest financial and professional business hub, with a massive housing demand for young professionals. With the development of a high speed rail network directly to London (HS2, phase two), the amount of professionals moving to the city is set to continue to rise. According to GOV.UK, the construction of phase two will connect Manchester to London with an improved journey time of 1hr 8 mins, down from 2hr 8mins. (8)
In addition, Manchester International Airport has encouraged the amount of international business investment into the city, bringing both financial investment and employment. This means that there is also demand for short term tenancies with businessmen visiting the city to attend meetings and spend time in a companies UK office.
Short term lets are also in demand, to take the pressure off hotels and serviced apartments in Manchester. The number of tourists visiting the city each year is growing, with a record 10.3 million recorded in May 2015. (4)
Manchester offers serious property investors a strong potential for long term stability and capital growth, thanks to it’s population growth, rise in rental demand and economic development. (7)
The Heaton Group specialise in the rapid development of high quality HMOs and self contained apartments in the Greater Manchester area. For information about our current investment opportunities please contact one of our investment experts by calling 01942 251949 or visiting www.theheatongroup.co.uk