Property investment consistently ranks high on the priority list for many investors – and for a good reason. Property has proven to be resilient during times of crisis, making it an attractive option.
This is particularly relevant for UK investors, given the current uncertainties surrounding the value of the pound and the potential rise in interest rates.
Amidst the instability in other sectors of the UK economy, the housing market stands out as remarkably stable. As a tangible asset, housing tends to appreciate in value over time.
Consider the performance of the property market during the pandemic. In 2021, amidst the challenges of Covid-19, UK property prices experienced the fastest growth rate since 2004.
Reports indicated that buyer demand, driven by pent-up demand resulting from three national lockdowns, was twice as high as pre-pandemic levels, showcasing the housing market’s resilience.
Knowing that property investment is a wise choice, the next crucial consideration is where to invest. Choosing the right location can make all the difference between a successful and a failing investment.
Manchester is a prime destination for property investment, particularly when targeting the right areas.
Here are the top three benefits of Manchester property investment in 2023.
Rising Population
According to the House Price Index, house prices in Manchester have risen by 6.10% since February 2022, with prices now at £231,110 in May 2023.
This growth can be attributed, in part, to the increasing population in the city and the subsequent surge in housing demand.
Manchester’s population has grown by approximately 60,000 (from 2,710,000 to 2,770,000) between 2018 and 2022 and is now predicted to increase even further, too, with estimations that the population in Manchester will increase by 56,000 by 2034.
For investors looking to invest in buy-to-let properties, this population growth ensures a steady stream of tenants for the foreseeable future.
Regeneration Efforts
Manchester has experienced a significant influx of population over the past two decades due to its commitment to regeneration. Notably, the £1.5 billion Spinningfields regeneration project has attracted numerous investors.
Additionally, several planned developments are in the pipeline, including the estimated £800 million NOMA project in the North of the city and the redevelopment of the Northern Gateway, expected to be worth nearly £1 billion.
These ongoing and planned regeneration initiatives present unique and affordable investment opportunities for property investors.
Rising Student And Young Professional Demographic
Manchester, known for its prestigious universities and thriving industries, has become a sought-after destination for buy-to-let investors due to its abundant job opportunities and rapidly increasing property values.
Greater Manchester boasts a student population of over 100,000, with a significant portion concentrated right in the heart of the city itself, making it an excellent choice for both residential and student property investments.
Investing in student accommodation in Manchester City Centre presents a compelling option for property investors, offering higher rental yields and lower average house prices compared to residential properties.
The appeal of Manchester extends beyond the student demographic, as many graduates are choosing to stay in the city to develop their careers instead of flocking to London, which was once regarded as the go-to destination for young professionals.
The high cost of living in the capital has led many individuals to seek alternatives elsewhere.
Manchester’s vibrant business landscape, encompassing established companies and burgeoning start-ups, provides ample opportunities for young professionals to thrive in the city.
Consequently, there is a noticeable presence of young professionals in Manchester, creating a demand in the housing market that investors can capitalize on.
In fact, around 51% of graduates opt to remain in Manchester to pursue their careers, further reinforcing its appeal as a long-term investment destination.
Moreover, Manchester offers a more affordable cost of living compared to London. According to Numbeo, consumer prices, including rent, were approximately 32.31% lower in Manchester than in the capital city.
This affordability factor, coupled with the desire to escape the high expenses of London, has prompted a considerable number of individuals to migrate from the capital to Manchester, with approximately 13% of inhabitants making the move up North.
In summary, Manchester’s thriving educational institutions, robust job market, and attractive property market make it an enticing choice for buy-to-let investors.
The city’s ability to retain graduates and its lower cost of living compared to London contribute to its appeal as a long-term investment hub.
With a growing population of students and young professionals, Manchester offers a fertile ground for investors to seize opportunities and capitalize on the city’s potential.
Conclusion
With solid rental yields and promising growth, Manchester offers nearly everything a property investor should seek in 2023.
