Why Invest in Manchester Buy-to-Let Property in 2024?

With some of the most revered educational institutions in the country being located in Manchester, it’s no surprise that demand for property is high. 100,000 students are enrolled across the city, producing 36,000 graduates every year. Better yet, 46% of these graduates choose to stay in Manchester after their degrees have been completed, creating a consistent flow of talent into the city that increases demand year after year.

The city’s student population is not the only demographic keeping demand for Manchester property high – with an abundance of regional investment in Manchester being carried out, and with plenty more projects in the pipeline, more and more people are coming to Manchester. With 500 jobs being created from the Manchester Airport transformation, 20,000 at Atom Valley, and 1,000 at Cloud Imperium Games, it is clear that the Manchester job market is thriving, which is sure to accelerate demand for properties in this northern city.

Buy-to-let investors will benefit from exceptional yields across Manchester city and the broader metropolitan area, with yields being consistently high. The average UK rental yield is 4.71%, which Manchester consistently exceeds. Openshaw is the best performing area, achieving yields of 7.6%, closely followed by Ordsall, Blackley and Debdale, all of which achieve yields of 6.7% or more. You can find out more about the yields you can expect across Manchester here.

Aside from having great yields, Manchester properties are relatively cheap to purchase, making them a great option for new and experienced buy-to-let investors. The average property in Manchester according to the Halifax Price Index costs £230,967, which is significantly cheaper than the average property in the UK, and the average rent in the city sits at £1,267. Despite this, Manchester property is experiencing impressive growth, with Zoopla recording year-on-year growth across the Manchester market of over 8% – as such, we don’t expect property prices in the city to remain low for much longer, making now the best time to invest.

Local culture in Manchester is second to none – whether you’re looking to attend a sports game, delve into some local history, or explore the best that British nightlife has to offer, Manchester has it all. There truly is something for everyone: families will enjoy the city’s many museums, namely the Science and Industry Museum and Manchester Museum.

Students and younger locals will appreciate Manchester’s thriving club culture at The Printworks, vibrant music scene and bustling LGBT nightlife found on Canal Street. Sports fans will undoubtedly be familiar with Manchester’s renowned football teams and famous cricket ground at Old Trafford, bringing the nation’s biggest sporting events to your doorstep. Lastly, Manchester’s retail culture offers something for everyone – whether you’re looking for big brands at the Trafford Centre or Arndale, or on the hunt for your new favourite independent shop in the Northern Quarter.

The residential sales market in Manchester is markedly more affordable than other cities, especially when compared to London. Despite the abundance of opportunity, redevelopment and growth that this northern city is experiencing, property prices remain reasonable in Manchester – the average home, according to the Halifax Price Index, costs £230,967, which is less than half of London’s average. This is despite an annual change in property prices of +9% in Manchester – the second-highest surge in property prices in the UK. With such fast property price growth in Manchester, likely informed by the impressive regeneration projects and opportunities available in the city, investors are advised to consider investing sooner rather than later to avoid inflated house prices in the coming years.

Furthermore, the city experienced immense rental growth according to the latest JLL research – their Big Six Residential Development Report unveiled that whilst rents increased across the nation by 14%, Manchester far exceeded this by experiencing 19.6% growth. This is only set to continue, with JLL predicting that the city will experience 19.3% further price growth and 21.6% rental growth by 2027, the highest forecasts across all UK cities. As such, it is clear that this northern powerhouse is achieving more success than your average town or city, making Manchester a key contender for the best place to invest in UK buy-to-let property in 2024 and beyond. 

Large and small businesses can thrive in Manchester, with large tech businesses like Klarna and Microsoft, as well as giants such as Siemens, Amazon, Kellogg’s and Unilever all having bases in the city. BBC and ITV also have studios in the city, making it a particularly important place for British media culture and television production. Manchester was also named the best place for small businesses, with local traders thriving across the city and making up a significant amount of the 22,850 enterprises that base themselves in the greater metropolitan area.

Job opportunities are abundant thanks to regeneration in city, which is set to accelerate GVA in Greater Manchester by 2.4% per year, which far exceeds the national average. This could create over 260,000 jobs in the broader metropolitan area, to be met by a projected population increase of 295,700. With each of these prospective employees requiring local housing, there is no better time to invest in the Manchester buy-to-let market.