Buy to Let Property in Manchester: A Comprehensive Guide

Buy to let property in Manchester has long been on investor’s minds, and its been in their actions too. Over the past decade, Manchester has become one of, if not the top investment location in the UK. And for good reason.

Manchester offers an impressive combination of strong rental yields, steady capital growth, and a growing population of young professionals and students seeking accommodation. This drives consistently high demand for rental properties.

Reasons to Invest in Buy to Let Manchester

There are several reasons to consider investing in buy to let property in Manchester:

Thriving Economy

Manchester’s thriving economy attracts businesses and skilled workers, and from diverse sectors such as finance, technology, and creative industries, making it an ideal investment prospect. The city has seen significant development in recent years, with a focus on infrastructure and regeneration projects. As part of the Northern Powerhouse initiative, Manchester’s economy continues to grow further boosting its long term appeal to investors.

Popular Place to Live, Work and Visit

Manchester is known for its culture, bars, clubs, and restaurants, making it a popular choice for residents and tourists alike. Manchester boasts excellent transport connections by rail, road and air.  Home to numerous universities, Manchester’s thriving student population amplifies the need for quality rental accommodation, making the city an attractive prospect for buy-to-let investors seeking strong returns.

Rising Rental Values

Rental values across Manchester have increased significantly over recent years and the demand for property to rent in the city continues to grow. The city’s diverse tenant base, including students, young professionals, and families, supports a healthy rental market with consistent demand.

Increasing Property Values

Manchester has experienced steady growth in property prices over an extended period, and in many cases, the rate of growth has far surpassed that experienced in other UK cities. With no signs of slowing, Manchester offers investors the potential for significant capital appreciation over time.

buy to let property Manchester

Why buy to let?

With shifts in mortgage rates and increased cost of living, many private landlords have opted to leave the market. Yet buy to let continues to offer opportunities to build wealth and generate passive income.

  • Tangible asset: When compared to other asset classes, property is a physical asset that you can touch.
  • Capital appreciation: Over the long term properties increase in value, even when accounting for any dips and slowdown in the market the overall trajectory is upwards, meaning investors will benefit from capital appreciation
  • Attainable upfront cost: Investors can usually leverage when buying a buy to let property meaning there is a lower initial investment cost
  • Hands-off investment: It’s entirely possible to engage a property management company, especially in newer buildings, who will look after the property and tenants on the landlord’s behalf
  • Passive income: Whilst shifting interest rates can have an impact on how lucrative passive income will be, rental price growth has been significant enabling investors to cover costs and achieve profit

Largely it is only those who operate their buy to let investments as businesses who are successfully navigating the property market, this doesn’t mean you have to be a professional investor, it simply means that investors need to structure their investments well.

Tips for Buying a Buy to Let Property in Manchester

Here are our top tips for buying a buy to let property in Manchester:

Focus on Where to Buy

When looking for a buy-to-let property in Manchester, it is crucial to consider the best areas to invest in. Consider locations with good transport links, growing rental demand, and potential for property value growth.

What Will Appeal to Tenants

Understanding what tenants want is key to making your buy-to-let property more attractive. What will appeal to tenants will be dictated by the type of rental property you are buying and the demographic typical of that specific residential area. An area that’s popular with students might demand a different type of property to that of an area that is popular with families. Know your audience to ensure your property is in demand in the area.

Pay the Right Price

Paying the right price for your buy-to-let property is essential to maximising your profits. It’s important to consider the current market and the potential rental yield when assessing the property’s value. Do not solely rely on the listed sale price; instead, research comparable properties in the area and consider factors such as location, property condition, and rental income potential. This can help you determine the right price to offer and ensure that your investment is profitable.

Is Manchester a Good Place to Invest in Property?

Yes. Manchester is absolutely a good place to invest in property.

Manchester’s rental demand is sky-high

With a strong economy and growing job market, it’s an appealing destination for young professionals and students alike. The city boasts numerous world-renowned universities, which attract a steady stream of tenants and consequently offer landlords excellent rental potential.

And prices are rising

In recent years, there has been a surge in Manchester property prices, yet they remain more affordable than those in London. This affordability, combined with the city’s strong rental yields, make it an ideal location for buy-to-let investors. Manchester’s thriving economy is bolstered by robust job growth and the city’s status as the largest regional economy outside of London.

Plus its exceptionally well connected

A key component of Manchester’s appeal as a property investment hotspot is its impressive transport links. The city benefits from extensive road, rail, and air connections, facilitating easy access to the rest of the UK and beyond. This, in turn, makes Manchester an attractive destination for businesses, fostering its economic growth further.

buy to let property in manchester

Where Is the Best Buy to Let in Manchester

So, you’ve decided you want to invest in buy to let property in Manchester. Great. Buy where is the best buy to let in Manchester?

Manchester City Centre: In the heart of the city, this area is always in demand from tenants, particularly young professionals working in the nearby offices. Property prices are generally higher in the city centre, though the strong tenant demand helps offer landlords good rental yields. The abundance of shops, restaurants, and transport links make it a top choice for many investors.

Salford: This area has experienced significant regeneration, with developments such as MediaCityUK bringing the BBC and other organisations to the area. Salford’s growing economy and its proximity to Manchester City Centre make it an attractive location for buy to let investments. Property prices in Salford are generally lower than the city centre, offering better value for investors.

Trafford: With excellent transport links, Trafford is an appealing location for those working both in and outside of Manchester. The area boasts a range of property types, at different price levels, attracting a diverse group of tenants. Rental yields can be strong in this area, particularly for well-presented properties.

Chorlton and Didsbury: These popular suburbs offer a mix of independent shops and restaurants, attracting a mix of young professionals and families. Both areas boast strong transport links to the city centre and enjoy vibrant local economies. Although property prices can be higher in these areas, the strong tenant demand makes them worth considering for buy to let investors.

2024 Manchester Property Investment Guide

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Buy to let in Manchester

Investors can choose from a range of buy-to-let properties, including apartments, city centre developments, and student accommodation, to suit their investment goals.

Thirlmere Deacon has a selection of options available to investors seeking buy to let property in Manchester.

Get in touch to learn more.

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