Thinking About Investing in Manchester Property?
CONTENTS
- Why Manchester? Why Not London?
- Manchester…The Opportunity
- Manchester Regeneration
- Hub For Business
- The Place To Live
- The People
- Get In Touch
- Latest Opportunities
Property remains one of the safest areas for investors to invest in. For generations, it has been the only asset class to consistently perform, and due to the fundamental factor that people always need somewhere to live, and populations are always rising, property is an investment that will continue to perform well.
But some locations perform better than others. Why is that? And where performs well? We’ve been doing some research and have found Manchester to be top of our places to invest in…
WHY MANCHESTER? WHY NOT LONDON?
Manchester was previously considered an unusual choice for investors in the buy to let market, with many opting for London due to its high growth potential and high yields.
A number of years on, those savvy investors from decades gone by have seen that London doesn’t offer the same ‘golden’ opportunities it once did.For any investor, the key metric to look at is Supply versus Demand. London has, and always will have a supply issue, however the demand now is dimishing with more and more people opting to live out of the city and commute, in search of a better quality of life. This has left London open to poor (and in some cases negative) growth, reducing yields, and to put it bluntly, not an attractive place for any smart investor to park their funds.
Other reasons for this are due to there being an affordability ceiling for first time buyers. Average salaries in London are £34,473 (http://www.cityam.com/206242/where-can-you-earn-most-uk-pay-london-much-higher-any-other-part-uk), with average property prices now £658,920 (https://www.zoopla.co.uk/house-prices/london/), meaning the majority of people living in London will never be able to buy.
Good for the rental market in a normal situation, however, now the rentals have gotten so high, even they are flat lining, with many landlords needing to reduce their rents, or keep them the same for 2-3 years at a time. They’ve risen by an average of just 0.1% in the last two years.
2024 Manchester Buy to Let Guide
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MANCHESTER…THE OPPORTUNITY
Manchester on the other hand does have a big supply issue, partly due to nothing being built between 2008-2012 in the city centre, but also due to the ever-growing demand for city centre properties. It is anticipated that by 2025 the population of Manchester City Centre will increase by 125,000.
“Backed by significant investor confidence, a strong business community, and an influx of new talent, the demand for property, particularly in the residential market, has never been more evident.”
Deloitte – 2018 report on Manchester
Currently only around 11,000 new homes are in the pipeline for completion in the next 3-5 years. Unless developers up the rate at which they are building, the pressure on the property market here is going to be felt for quite some time.
https://www2.deloitte.com/uk/en/pages/real-estate/articles/manchester-crane-survey.html
MANCHESTER REGENERATION
Manchester is part way through a multi-billion pound regeneration scheme, improving all areas of the city centre, airport, and general infrastructure – including the iconic Spinningfields – the luxury destination home to over 165 world class financial and commercial services organizations, shops and restaurants.
https://www.spinningfieldsonline.com/about/
Manchester is also incredibly well connected to local, national, and international destinations through an impressive infrastructure system. Manchester has 3 train stations to serve visitors and workers from outside of the city, but also visitors from other northern destinations such as Sheffield and Liverpool, along with international visitors from across the globe at Manchester International Airport – currently undergoing a £1bn expansion plan that will increase visitors to over 50m annually by 2024.
https://en.wikipedia.org/wiki/Manchester_Airport
HUB FOR BUSINESS
One of the reasons Manchester has performed so well The reason for this growth is the level of investment in the job market – over 80% of the FTSE 100 companies now have a presence in Manchester, and 50 international banks, with an estimated GDV of over £50bn, making it more attractive for graduates to remain there, of which 20,000 graduate and stay in the city centre each year due to the strong job opportunities. Manchester University is part of the elite Russell Group, and can count 25 Nobel Prize Winners amongst its staff and students – only Cambridge and Oxford have more.
https://www.manchestereveningnews.co.uk/whats-on/whats-on-news/manchester-best-city-to-live-9879561
When the level of demand outstrips supply, it forces property prices, and also rental values up. When there are 10+ people for each property it is easy to see why landlords are getting high yields, and sellers are achieving healthy growth.
THE PLACE TO LIVE
Manchester is consistently in the top 3 UK hot spots for investment, has recently been voted the most desirable place to live in the UK, and out performs any other city in terms of both capital appreciation and rental yields.
The quality of life in Manchester is considered some of the highest in the UK due to job prospects, social scene, and ability to get to idyllic destinations such as the Peak District in just a few minutes – pleasing both urbanites and nature lovers alike.
There are so many other attractions for visitors and residents than ensure Manchester will remain top of the rankings table for many years. These include art galleries – with the Whitworth Gallery being named the Museum of the Year 2015 (http://www.whitworth.manchester.ac.uk/about/museumoftheyear2015/), a thriving theatre scene with two major theatres – the Opera House and the Palace Theatre, housing major touring shows such as Hairspray, Mama Mia, Les Miserables and Matilda, in addition to the recently opened £25m HOME arts centre, and the £110m arts space at the old Granada Studios.
The music scene is incredibly strong, with many major artists emerging from Manchester, including Oasis, The Smiths, and joy Division, with many major international artists playing here each year at the likes of the Manchester Evening News Arena, The Apollo, and Academies.
And it wouldn’t be right to talk about Manchester without mentioning that the city is home to two of the world’s largest football teams – Manchester United and Manchester City, both attracting millions of visitors each year, adding billions of pounds to the local economy. Certainly the sporting capital of the UK, if not the world, especially since hosting the commonwealth games which left a legacy of a world-class Manchester Aquatics Centre, the Regional Athletics arena, National Squash Centre, and the Manchester Velodrome.
THE PEOPLE
It wouldn’t be right not to mention the residents of this magnificent city. Seen as some of the friendliest, caring people in the UK – this was seen when over £2m was raised following the blaze of the Manchester dogs home caught fire.
So you can see why people want to live here…
GET IN TOUCH
We are looking forward to hearing from you regarding you next investment. If you would like to talk with us directly you can call us on +44 (0) 2039507939 or send us an email at [email protected]. If this is your first time landing on Thirlmere Deacon Property Investments I encourage you to visit our homepage https://tdpropertyinvestment.com to read more about us and to see what we have on offer.
