Manchester has been flagged as the UK’s new buy to let hotspot following a boost from new developments, according to the latest report from LendInvest.
Following the decline that has marred the buy to let sector in London, investors have been seeking a new location to turn to. Manchester has seen strong growth in both culture and economy, as well as through infrastructure. The report found that Manchester has the fastest rental growth in the UK, with rental prices up 7.53 per cent in the last year. The city is also ranked number one for rental yields in the UK, offering average returns of 6.11 per cent for landlords and buy to let investors.
The sectors buoyancy is likely fueled by new developments such as MediaCity UK, which as helped turn Manchester into a hub for young professionals. It is expected that Manchester’s population will rise from its current level of approximately 520,000 to 600,000 by 2030, further stimulating demand.
Manchester is also a strong choice for investors focused on capital growth. The city currently offers the second fastest price growth in the UK, according to research from Hometrack. Property values are up 7.1 per cent. Despite this, prices remain relatively low, falling far behind London at an average of £157,500, compared to the capital’s £494,200. This has led to LendInvest labelling the city as one of the top 10 buy to let hotspots in the UK.
The results of the research are clearly demonstrated through the city’s rising investor interest. TheMoveChannel.com saw a surge in searches for Manchester property in the first quarter of 2017, up 112 per cent year on year.
As landlords react and adapt to new tax changes it seems likely that interest in Manchester’s market will continue to grow due to the premise of low prices and consistent demand.