Manchester, voted as the UK’s best city to live in 2015, is quickly establishing itself as the new investment hotspot in the country; the natural alternative for those investors frustrated by the rising costs and shrinking yields currently on offer in London.
According to a recent report published by JLL, Manchester is currently the UK’s strongest property market outside of London, with the highest rental yields of up to 7%.
This has seen an ongoing investment surge from both overseas and domestic buyers looking to invest in a robust local economy that’s offering low property prices with profitable and attractive investment returns.
Ronald Garrett, Head of Sales at Alliance Investments said “Manchester is now the UK’s fastest growing city for property investment, the next five years are looking extremely promising with the undersupply increasing and 80% of the FTSE 100 offices opening here. The HS2 will have a huge impact thereafter with travel time between Manchester and London being reduced to an hour, the demand is constantly increasing as are house prices and rental yields”
The FTSE 100 Index has set an all-time high after rising above the December 1999 record of 6,950.
A robust job market, soaring population, and shortage of housing stock all means that house prices continue to grow in Manchester.
Matthew Jay, Managing Partner at Alliance Investments said “It has been predicted by one of the world’s largest real estate firms, Manchester will be the number one City in the UK for rental returns over the next 4 years with them expecting to rise by 23%. Capital growth in property values is expected to be close to 30% during the same time period which further highlights why Manchester is the number one city in the UK to buy property”
When looking to buy a property, good transport connections are key, both for attracting tenants and for when you come to resell the property. Data from Nationwide in 2015 showed that buyers in Manchester were prepared to pay 4.6 per cent more on average for a home within 500 metres of a tram stop.
With the Government funding the HS2 transport service, the commute between London and Manchester will be as short as 1 hour. This is the most substantial transport infrastructure projects ever built in the UK. The project will provide vital transportation links between cities and regions across the United Kingdom. The HS2 network will reduce journey times between some of the UK’s largest cities and also create economic benefits and thousands of jobs.
With an ever-growing population in a city with rich heritage and culture, booming with Universities, Manchester is rapidly becoming one of the most popular property investment hotspots in the UK outside of London.
Investing in property in the city almost immediately guarantees you a profit, especially if you choose to rent out to job-seekers and students.
If you’re looking to buy a property in Manchester or simply investing in buy-to-let options yielding immediate returns, get in touch with us at Alliance Investments. Alliance Investments is a subsidiary of Property Alliance Group which is a 27 year established UK property developer and investor with offices in Manchester and London. Our property portfolio includes the majority of sectors including residential, offices, industrial, retail and leisure developments throughout the UK’s cities and regions.
See more details on new build developments in Manchester.