Mark Burns, managing director of property investment firm Hopwood House, spoke to Property Investor Today and said Manchester was the one to watch for investors. He identified the city as “on the up”, and bucked the trend for investors normally focusing on London.
Manchester consistently appears in top ten places for rental growth in the UK, and Mark revealed rental yields in the are have reached “almost nine per cent year-on-year”.
Focusing in on the different areas in Manchester, Mark explained where he thought investors should be looking.
He said: “If it is high rental yields you are looking for, it seems areas such as Pendleton, Claremont, Langworthy and Salford top the charts at 8.84 per cent.
“Their typical monthly rents come in at £1,034 thanks to their proximity to the centre of Manchester and the University of Salford.”
He also highlighted eight per cent yields in Moss Side, Rusholme and Followfield. Discussing why Manchester has enjoyed such a boom, Mark said: “A major regeneration of Manchester has played a significant part in turning it into an investment hotspot.
“With affordability and rental yields both doing better than those in the capital, many investors are now setting their sights in a northerly direction, particularly thanks to the number of students and young professionals moving to Manchester.”
He continued: “Property investment has often been fuelled by many factors, but it seems to currently be driven by retirement needs, a desire for a second income, the need to start a property portfolio or inheritance purposes.
“City centres will always attract a high number of people, and a shortage of property keeps rental demand high, giving great scope for capital growth.
“A growing population and the construction of nearly 20,000 new homes around the city means the potential for investment will continue to grow for some time to come.”
Those buying in Manchester and elsewhere may want to sell up at some point, and now a study has revealed how to add up to £117,000 to the value of your home.
A third of Britons would be willing to splash out 20 per cent more on a property with one particular feature.
In research carried out by Dulux Weathershield, it was found buyers and renters would spend the extra money for a home with kerb appeal – a freshly painted front door and brickwork, a well-kept garden and clean windows.
This means that with the average home in the UK valued at £220,094, savvy Britons looking to sell their property stand to make a whopping £55,024 return. In London that increases to £117,966.