With constant commentary from property professionals and news headlines sometimes offering differing statistics, those thinking of investing in the Manchester property market might be wondering what to expect in terms of a potential return on investment.
Anyone considering investing in property in the UK will likely have Manchester on their radar – and for good reason; as the UK’s third most visited city, Manchester is a vibrant hub of the north that has something for everyone. With a population of just over 2.8 million residents, the city is home to five universities, two premier league football clubs and even its own international airport. Manchester also has a thriving economy, making the city hugely appealing to those wanting to work or study here.
Of course, everyone who does reside in Manchester needs a place to live. However, at present, there is a current supply and demand issue for rental properties in Manchester, with 75% fewer properties available in February 2022 versus the same time last year.
So what does the current picture mean for your property investment that you currently own in Manchester, or plan on owning if you invest with us here at Thirlmere Deacon? Here’s what you need to know.
Manchester Property: An Overview
- Greater Manchester population: 2.8 million
- Average property price (May 2022): £249,576
- Average rent PCM (May 2022): £878
- Voted the ‘Most Livable Place To Live’ – Global Liveability Survey
- 36% increase in demand for property in Manchester City Centre in Q3 2021
The North West of England has seen record increases in house price valuations, soaring to 15% in the twelve months between February 2020-2021. Between April 2021-2022, figures rose a further 11%, with the average property in Manchester now costing £249,576.
Research has shown that approximately 340,000 people are leaving London year on year, with Manchester being a hotspot for relocating Londoners. Given some of the awards, Manchester has to its name, not to mention the significantly lower property prices versus the capital, it’s perhaps no wonder this is the case.
Property in Manchester is certainly in demand, and like much of the UK, the city is experiencing a supply and demand issue which is further pushing up rental prices. Even commercial property in Manchester is being snapped up, with internet provider Telecom Group one of the latest companies to sign significant rental agreements for the city centre. All at a time when commercial property elsewhere in the country (particularly in town and city centres) has struggled.
What we can ascertain from such results is that property across the board is in demand in Manchester. The city has managed to deliver incredibly strong figures against the backdrop of a tumultuous time globally, proving its resilience. With so many individuals and companies honing in on the city for new opportunities, growth in the residential property sector is unlikely to slow down anytime soon.
Greater Manchester Area Overview
Manchester, particularly the city centre, acts as a central hub for many of the outer towns and cities found within Greater Manchester as a whole. The city is also in close proximity to Liverpool, Sheffield, Preston and Warrington.
As an investor, what this fact boils down to is that there is always going to be a demand for the amenities and opportunities found within Manchester itself. People flock to the city for jobs, education and even for leisure and tourism purposes. This level of diverse and constant economic activity creates a steady backdrop for any investment, because the area isn’t ‘up and coming’, or even reliant on just one main draw. Instead, Manchester City Centre and the surrounding areas have it all.
Compared with investing in a lesser-known location, or even a location that doesn’t have as much investment nor global interest surrounding it, Manchester makes for a solid choice and the recent spike in property valuations is testament to this.
Manchester Property ROI – What Returns Can I Expect On My Investment?
As with any location you’re looking to invest in, the returns are going to be based on a number of factors. Mainly, the specific area the property is located in, along with the property type and condition. Over time, the returns will shift upwards or downwards depending on how these combined specifics fair in the current climate.
Here is an overview of how the Manchester property market has performed recently, including the areas that achieved both the highest and lowest rental yields.
Manchester Property Investment – Areas With The Lowest ROI
|Area||Average asking price||Average ROI|
Positioned approximately five miles Southwest of Manchester City Centre, Urmston shares a border with Merseyside, and has excellent rail links making it ideal for commuting. Though with a higher than average asking price for Manchester as a whole at £341,440, and lower rental yields averaging 3.1%, property in M41 Urmston offers fewer returns for investors.
Tyldesley in M29 boasts average property prices that are £20,371 lower than the Manchester average property price of £249,576. However, the rental yields for Tyldesley average is just 3.6%. So although property in the M29 area is far more attainable, profits are likely to be muted over the longer term than in other areas of Greater Manchester.
Manchester Property Investment – Areas With The Highest ROI
|Area||Average asking price||Average ROI|
|M50 (Salford – MediaCityUK)||£209,565||6.0%|
So where should property investors look in Manchester, if they want to achieve excellent rental yields?
It’s perhaps no surprise that the areas clustered around Manchester City Centre and Salford have achieved the highest rental yields in recent times, averaging between 5.9% in M5, and up to 7.1% in M14.
However, one aspect that certainly is unexpected is that these areas all have lower average purchase points than the areas of Manchester with the lowest rental yields. This is in addition to having lower prices across the board than the average cost of Manchester property.
Therefore, any of the above locations are ones to watch as an investor interested in the Manchester property market.
**Data sourced from Property Data.
Manchester Property Investment Opportunities
Now that you know the types of figures that can easily be achieved in Manchester, it’s time to look at the types of property you can actually invest in here. There’s perhaps no better place to start than the opportunities we have available in Manchester City Centre here at Thirlmere Deacon.
As always, if you are interested in securing any of our opportunities, or have any further questions as an investor, please skip to the end of this post to find our contact information.
Ancoats Gardens Manchester
Area average rental yield: 5.1%
Projected rental yield of opportunity: 7%
Prices starting at: £289,950
Ancoats Gardens is the epitome of luxury city living. Finished to an exquisite standard, the 155 apartments benefit from a private lounge, on-site gym, co-working space and rooftop gardens.
Located just eight minutes’ walk away from Manchester Victoria Station, the development couldn’t be better positioned for living and working in the city.
Originally hailed as the epicentre for the Industrial Revolution, Ancoats has also recently been crowned the ‘Best Place To Live In Manchester’.
One Regent Manchester
Area average rental yield: 5.6%
Projected rental yield of opportunity: 6% rental assurance for 2 years
Prices starting at: £237,000
Overlooking the River Irwell on the outskirts of Manchester City Centre is One Regent. Beautiful 1,2 and 3 bedroom apartments await along with secure underground parking offering the utmost convenience for residents.
The M3 location borders Salford, along with all of the areas noted in our locations that have recently reported the highest average ROI. As well as Manchester City Centre itself, One Regent is also close to MediaCityUK, which is a major film and television hub.
Wardour Point Manchester
Area average rental yield: 5.9%
Projected rental yield of opportunity: 6%
Prices starting at: £210,000
Wardour Point is located in the M5 area of Manchester known as Ordsall and appears on our above list of the areas of Manchester which have recently shown to have the highest ROI.
In addition, our Wardour Point opportunities have the lowest entry points of any of our Manchester properties, starting at just £210,000. This figure is also lower than the average property price in Manchester of £249,576.
Positioned along Regent Road, Wardour Point is in close proximity to Deansgate, Spinningfields, MediaCityUK, Salford and Old Trafford. Once inside, the specification of the build and finish could rival even the most prestigious of Central London apartment complexes – all for a far more attainable price.
Manchester Properties For Sale – Investment Opportunities Starting At £210,000
Is Manchester calling your name? Are you thinking about investing in the Manchester property market?
Here at Thirlmere Deacon, we have a number of exciting investment opportunities located across the UK and further afield, including here in Manchester – see the latest investment opportunities in Manchester on our dedicated area page or learn more about the area by downloading our Manchester investment location guide.
With our investment opportunities starting at just £210,000 in Manchester paired against promising rental yields, not to mention record-breaking property price increases seen in recent times, now is the time to capitalise on a strong market by investing in one of our opportunities.
If you’d like any further advice on anything we’ve mentioned above, or if you are considering investing in one of our opportunities in Manchester or beyond, please drop us a message or call us on +44 (0) 2039507939.