- Manchester, the UK’s top investment city as named by HSBC.
- Manchester’s population growth is three times the national average.
- Highest rental yields in the UK in 2015 7.8% Average
- £14 Billion HS2 Rail to be launched making travel time from Manchester to London in one hour.
- £800 Million Airport expansion
- 98% rental occupancy in 2015 in the City
- Highest capital growth predicted in the country over the next five years
- 80 members of the FTSE 100 have a presence in Manchester
- Manchester to become a separate power base with a £300m annual budget.
- 80,000 new residents by 2033
- 60,000 new homes by 2027
- £3bn and growing, amount committed to major real estate infastructure projects in the City
- £3.5bn spent on creating the second largest hub for creative industries in Europe
- Greater Manchester region’s GVA expected to rise to £23bn by 2030
Why invest in Manchester?
There are multiple reasons why investing in Manchester is a profitable option. Below highlights some of the reasons why investors are shifting focus from investing in London to investing in Manchester.
With a population of 2.6m, Manchester is the second largest economic hub after London. Property investors are flocking to this area due to the higher profits earned in comparison to properties in London.
Due to regeneration efforts by the government, Manchester’s economy has received a massive boost in sectors such as engineering, financial services, technology, broadcasting and media. Manchester’s Media City has become the UK’s Media Hub with companies such as ITV, Granada and most recently BBC relocating their offices from London to Manchester. This move has not only brought a large population of skilled workers into the city, but also contributes approximately £300m per annum to the economy.
This Media City Hub and contribution of the BBC is an integral part of the Chancellor George Osbourne’s plans of turning Manchester into the ‘Northern Powerhouse’.
Manchester’s accessibility to the rest of the world is another reason to consider investing in the city. It is well connected by air, road and rail. Outside of London, Manchester International Airport is the UK’s largest airport with over 20 million passengers connecting through to more than 200 destinations, some of which include New York, Hong Kong and Dubai. The recent announcement of the £1bn investment expansion of this airport will allow extra 10m passengers to travel through per year.
Manchester is the Northern Hub of the UK’s rail network and has direct train links to several major cities, as well as a 2 hour express service to London. Another key reason to invest in Manchester is the HS2 which is currently under construction. The High Speed rail network will link Manchester and Leeds to London via Birmingham. This will shorten the journey time from Manchester to London by half. The city’s railway system has five rail stations that serve central Manchester and links with the Metro link rail tram service operating throughout central Manchester.
Continual Development and investment into Manchester
The development of the city is a continuous work in progress with excellence as the final goal. This is yet another reason to invest in Manchester. It is expected that many large enterprises will relocate to Manchester, such as the BBC. Approximately 80% of the FTSE 100 Companies reside in Manchester, which attracts more multinational companies to set up in the city. While business hubs such as Spinning Fields, Trafford Park and Media City receive international attention; more businesses are drawn to Manchester. This growth creates a demand for accommodation, which is one of the drivers behind property value increases. Manchester is an opportunity for investors who are seeking capital gains.
High demand for rental housing and a low supply of housing stock has created record occupancy rates, which is an ideal situation for buy-to-let landlords. It is estimated that approximately 27% of housing stock in Manchester is privately rented.
With continual government investment and strong demand, the forecast for the property market in Manchester is highly positive and it is an excellent location for an investment property. HSBC selected Manchester as the top city for property investment in 2015, reporting the highest rental yields in the country at 7.98% and a strong rental demand. This outperforms London, where the capital’s hotspot: Newham, East London provided yields of 5.2%. Manchester is an excellent location for investors seeking property investments that will outperform any other property market in the UK.