For any buy-to-let investor, the choice of where to invest needs to take into consideration the fine balance between yield and capital appreciation.
In order to make the most of your money, you need to know that your property will be a popular choice for renters, that you’ve bought it at the right price, and that it will rise in value over time.
According to a recent HSBC survey of the UK rental market, Manchester is the number one hotspot in the UK for buy-to-let investors with the highest yields in the country at 7.98%. The area is quickly becoming popular with out of town investors who have been priced out of the London market.
Big reasons to buy-to-let in Manchester include the fact that it is Britain’s third largest city (some would even go far as to say it is Britain’s second city: controversial!), it has great shopping including high-end luxury retail, top football teams, fantastic nightlife, and the largest student population in the UK – all of which make for a pretty attractive city for renters and investors alike. Perhaps this accounts for the population explosion Manchester has seen in recent years.
Art and Culture
Manchester also stands out for it’s well developed cultural scene with recent major investment in arts venues likeHome, Museum of the Year 2015 winner, the Whitworth Art Gallery, and £110 million new build arts space, The Factory.
South Manchester is considered the more cosmopolitan and desirable end of the city. High employment, lots of investment in the area, a mix of renters: families, young professionals, and students, all make the southern conurbations highly desirable. With that popularity however, comes a low potential yield as house prices are high in these attractive areas, particularly Chorlton and Didsbury. A good game plan for buying to let is to go for areas that border the most desirable. For example, our first contender:
Snuggled in right next to the ever-popular Chorlton, Stretford is quickly becoming the smart choice for buyers of all types. On the tram-line and with good amenities, grammar schools, and great transport links, Stretford offers a range of housing to suit all needs and budgets. As it’s a little out of the main drag, Stretford isn’t overrun with students and badly kept properties – a win-win in our view.
The Lend-invest buy-to-let index stated earlier in the year that areas in the M13 postcode were attracting an amazing 8.3% yield. Neighbouring towns like Ardwick, and Longsight, and Levenshulme can be great places to look to buy as they attract a broad spectrum of renters from families to students and everything in between. The ‘Lev’ as it’s known, is a rising star with plenty of independent traders, the amazing antiques village and a very successful weekly market.
Not actually in Manchester, Salford sits in Greater Manchester but is in fact, it’s own city – it’s got its own cathedral and university too. With the creation of Media City and the huge investment in the area, Salford Quays is much changed from its industrial past. Now bulging with media sorts looking for short and long term rentals, the Quays have become not only a buzzing place to work, but also a residential community. Prices vary here thanks to the Salford postcode, but are on the up an up nonetheless.
Manchester is a great bet for buy-to-let investment. It’s a huge city with plenty of nooks and crannies and plenty of variety. We’ve outlined three good bets for high-yield locations but as ever, make sure you do your research and make the smart choice for your cash.