Manchester Property Investment

A guide on where to invest and how to secure the highest return on investment.

Manchester is the jewel in the Northern Powerhouse’s crown and offers investors a variety of property investment options including residential buy to let and student property that offers the potential to generate reliable rental returns and capital growth potential.

Welcome to Manchester

Located in the North West of England, Manchester is often referred to as the UK’s “second city” and with a population of 2,807,000, Greater Manchester is one of the country’s largest metropolitan areas.

Boasting a rich cultural history, Manchester is a vibrant, cosmopolitan city and, in recent years, it has emerged as a thriving location for digital, creative, and media enterprises.

The creation of MediaCityUK following the relocation of the BBC has had a significant impact on Manchester’s and Salford’s economy, subsequently attracting talented young professionals, graduates, and university students who want to advance in media and technology sectors.

Between 2002 and 2015, Manchester’s city centre population increased by 149% (Centre for Cities). This substantial rise in the number of people living in the city centre combined with a lack of housing has created a perfect storm for developers and property investors alike, who are attracted to the potential gains that property investment in Manchester has to offer.

At the forefront
of Generation Rent

With around 40% of the population aged 25 to 34, Manchester is home to one of the UK’s youngest populations.

For property investors, this demographic – which is often referred to as Generation Rent - has allowed buy to let in Manchester go from strength to strength. With high demand from tenants, rising property values, and developers unable to meet the demand for 2,500 new homes in Manchester per year (JLL), there has never been a better time for property investment Manchester.

Manchester also features two world-class universities and a student population of around 92,000, making it a prime location for student property investment. According to Centre for Cities, Manchester has the UK’s second-highest graduate retention rate (51%) and, with the city retaining talent within the jobs market, buy to let investors have the opportunity to provide rental property to those who have left university and are entering the job market.

Is Manchester a good place
to invest in property?

An advantage of being one of the UK’s largest cities is an evergreen demand for a rental property in Manchester’s city centre and surrounding area including the city of Salford.

Manchester is regularly ranked as a top location for buy to let rental yields and, with the average price paid for a property currently standing at £217,142, investors can enter the property market at a significantly lower price point than the national average of £256,405 (UK House Price Index for March 2021).

Investment property in Manchester also offers excellent capital growth potential, with property prices in the North West region set to rise by 28.8% by 2025 (Savills).

Build to Rent Manchester

Throughout the pandemic and Brexit negotiations, Manchester’s Build to Rent (BTR) sector has shown its resilience. When compared to other sectors, BTR has maintained high occupancy levels and this is largely due to the young demographic of the city. Generally speaking, Build to Rent households are ages between 26 and 40 and are often single occupancy.

The stability of Manchester’s BTR sector is great news for buy to let investors who are considering new-build apartments in the city as rental returns are underpinned by demand. Data released from JLL revealed that the company had its busiest year for lettings in 2020 in the last 10 years, with volume up 11.5%.

Strong demand from consumers for new housing has also been at the forefront of BTR in the city and, with a lack of available land to build new properties in Manchester, the city’s property market will remain increasingly competitive.

Why invest in Manchester Property?

When it comes to investing in property, securing rental yields and growth potential are two of the most common motivations, and property investments in Manchester provide investors with the opportunity to secure both.

Diversification is a great way to improve the performance of a property portfolio and with a range of fully managed property investments in Manchester available through Town Square Invest, location diversification is a common and proven method.

Depending on the asset class, investors can achieve a 6% NET rental return, a figure almost double the national average of 3.53%.

Boasting higher than average yields and the strongest projected property value forecast by 2025, there are plenty of financial incentives for investment property Manchester and, with the government committed to the development of the Northern Powerhouse scheme, investors are set to benefit from regeneration projects across the region.

Diversify your portfolio and invest in a fully managed,
income producing UK property

Our selection of UK buy-to- let properties offer reliable rental assurances,
so you will know exactly how much income you will generate.

Manchester Waters

Luxury Studio, 1, 2 and 3 bedroom apartments

Luxury Studio, 1, 2 and 3 bed apts

  • Receive 6% NET assured for 2 years
  • 28.8% capital growth forecast by 2025 Savills
  • Luxury on-site facilities
  • High rental demand
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Michigan Towers

Prime city centre apartments

Prime city centre apartments

  • Receive 6% NET assured for 2 years
  • 28.8% capital growth forecast by 2025 Savills
  • High rental demand
  • Luxury on-site facilities
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Queen Street

City centre 1, 2 and 3 bed apts

City centre 1, 2 and 3 bed apts

  • Hotspot for buy to let returns
  • Strong capital growth potential
  • Fully managed opportunity
  • Under construction Q4 2022 completion
View investment

Everything you need to know about property investment Manchester

  • Best buy to let areas in Manchester
    When it comes to property investment, location is a make-or-break factor. Some of the best buy to let areas in Manchester include properties in the city centre M1 postcode and apartments in Salford that offer easy access to MediaCityUK.

    Property investments in these areas will cater to the high demand for buy to let apartments and offer investors the opportunity to secure steady rental returns and strong capital growth potential over the next five to ten years.
  • What is a good rental yield in Manchester?
    With the average UK rental yield around 3.53%, many investors have diversified their property portfolio by investing in a property in hotspots like Manchester.

    Town Square Invest’s current selection of fully managed buy to let properties will provide investors with an assured 6% NET rental yield in Manchester.

    to find out more about our latest selection of income generating properties.
  • What is Generation Rent?
    Generation Rent typically refers to millennials and Gen Z who would rather rent than own their own home, often due to convenience and budget. For many, homeownership is an unobtainable goal however, a large section of tenants opts to rent because it provides them with location freedom. Furnished properties have proved to be particularly popular for renters, allowing them to move seamlessly into a new home. Renting also helps to provide Generation Rent with a better work-life balance, as it allows them to rent a property in a more desirable or city centre location and benefit from access to transport, employment, and the other benefits of living in a city – without the responsibility of owning a home.
  • Is now a good time for property investment UK?
    The UK has been named the world’s ‘most transparent’ location for property investment. With more than 5 million people living in the private rental sector, a diverse range of property types are needed to provide homes for the country’s population.

    More than ever before, the UK has presented itself as a stable location for property investment and has a proven track record of delivering rental returns and rising property values even in times of economic uncertainty.

    For property investors, the UK buy to let sector continues to offer plenty of room for growth and with demand for property at an all-time high, it has the strength to deliver reliable returns for many years to come.
  • What is the best property investment in UK?
    When it comes to property investing, it is not a “one size fits all” situation and, depending on the investor’s motivation behind investing, not all asset classes will be suitable.

    From commercial to residential buy to let, from off plan property to purpose built student accommodation, there is a stark need for investment in all corners of the UK’s real estate market. The variety of property needed is great news for investors, as it will allow them to handpick the best type of property investment for their individual circumstances, as not all investors will have the right level of capital available, or will want to hold onto the property for a certain period of time.

    One thing all property investors should note is that there is no “get rich quick” scheme when it comes to investing safely. If the opportunity presented to you looks too good to be true, it is important that you seek independent financial advice before buying to ensure the long-term viability of the opportunity.

Manchester’s place in the Northern Powerhouse

The Northern Powerhouse refers to a group of cities in the North of England that collectively add almost £350 million to the economy – a figure similar in size to that of London – and is home to over 15 million people.

Manchester is at the heart of the government’s Northern Powerhouse initiative and is joined by Leeds, Liverpool, Newcastle, and Sheffield.

Since its launch, millions of pounds worth of investment has been injected into the region, with improvements to businesses and infrastructure, in the shape of the new high-speed HS2 rail link, which is set to boost the economy by billions.

According to Manchester Council, HS2 has is set to double Greater Manchester’s economic output to £132bn by 2050 and it will deliver 96,000 jobs to the region.

Other investments in infrastructure include the redevelopment of Manchester Piccadilly station which is set to create 40,000 new jobs and is one of the biggest development opportunities in the UK which will have a significant impact on the local and national economy.

As a part of HS2, Manchester Airport Station has been designed to improve the accessibilityt of the airport and to enhance the investment programme at Terminal 2. Over the next 10 years, the redevelopment plan is set to create over 20,000 jobs and will deliver new homes, offices, and hotels.

A hub for global businesses

No stranger to the business world, Manchester has enticed some of the world’s largest companies to set up a presence in the city with the likes of Unilever, Kellogg’s, Siemens, Iceland, Klarna, Amazon, Microsoft, United Utilities, and Booking.com, operating out of the city.

And it is not just established businesses that are taking advantage of everything Manchester has to offer them. The Manchester-Liverpool region was ranked 9th in the 2020 Global Startup Ecosystem Report by Startup Genome.

The report values Manchester’s start-up ecosystem at $9.2 billion, citing Manchester’s global connectivity, universities, a large number of STEM graduates, and the fact that it has the largest venture capital concentration outside of London, as reasons why it has proven popular for new businesses.

Further investment in Manchester is set to create newjobs and boost employment prospects which, in turn, will increase the demand for property in the city.

Northern Powerhouse cities have established themselves as property hotspots in recent years, with cities like Manchester providing strong rental returns and scope for capital gains, making the city an ideal location for buy to let property investment.

Download your FREE guide
to UK buy to let investment property

What’s in the guide?

  • Location Guide: Where to Invest
  • Which Asset Class is Best for You
  • Market Fundamentals
  • Why Now is the Time to Invest
  • Learn how to Maximise your ROI
  • UK House Price Forecast
Download your FREE guide
to UK buy to let investment property
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Manchester student
property market

Manchester’s thriving property market has allowed investors to look beyond traditional asset classes to achieve reliable rental returns. One market segment that is performing particularly well is the student property market.

As an investor you may have not considered renting to a student however, buy to let yield trends have shown that university towns and cities are lucrative options for investors. The evergreen nature of student intakes means that there is never a shortage of tenants and, with 51% of students remaining in the city after graduation, there is a high demand for accommodation outside of privately operated PBSAs.

Manchester is one of the UK’s largest university cities and is home to two higher education institutions; the University of Manchester and Manchester Metropolitan. The University of Salford, University of Bolton, and University Academy 92 are located in the wider Greater Manchester region.

The Greater Manchester region has a total student population of over 100,000 people.Known for their academic excellence, these universities attract students from all over the world which has contributed to high demand for student-centricrental properties and central apartments for graduates and those continuing their studies at a Master’s level.

Minimum
7% NET yield
Realistic and reliable rental assurances for up to 5 years.
Ideal for UK and
overseas investors
Low entry level properties, ideal for portfolio diversification.
Prime locations
with high demand
All developments are located in popular UK university towns and cities.
Armchair
investment
Fully managed and furnished student apartments.

Start your investment
journey today...

Our team has over 50 years of experience working in the UK property industry and knows how to select opportunities that provide real growth potential.