One of the main reasons Manchester is so attractive as an area for buy-to-let is that the properties are affordable. The typical price of a Manchester property is around £159,000, up £1,450 during the past year, according to Zoopla. It compares to almost double at £290,000 for the country as a whole.
At the same time, rents are typically higher compared to the rest of the country, meaning the yields are good. The average asking rent in Manchester is £1,399pcm, according to Zoopla.
In its simplest form, yield is calculated by dividing the annual rental income by the total property cost. It means a property in Manchester costing £110,000 and rents out for £710 a month has a yield of 7.7 per cent*.
A yield of 7.7 per cent is higher than long-term average yields of around 5 per cent and is certainly a higher return than those secured on other types of investments such as savings.
Buying in Manchester
There is a wide range of houses for sale in Manchester, from period properties to new build homes. And there is a constant supply of flats in Manchester being built. The city is known for its warehouses and cotton mills – many of which have converted into somewhere to live.
With the city being the third largest in the country and containing the largest student population, there is plenty of demand for homes – a factor that makes it an attractive location for buy-to-let investors.
Jobs in Manchester
Manchester attracts some well-known household names, with companies that have chosen the city for their headquarters including Kellogg’s and Siemens. But perhaps the most high-profile move in recent years was the BBC, which transferred several thousand of its London-based staff to its new northern headquarters in MediaCity.
Transport in Manchester
There are frequent trains from Manchester to London, with Manchester Piccadilly station in the heart of the northern city. There are also buses to the capital or for those that prefer flying, there is Manchester airport in Ringway with regular flights to London. Manchester airport was the third busiest airport in the UK last year. All of the various transport links are ideal for those looking to invest in nearby property.
Areas of Manchester
So which areas of Manchester are popular? Three areas that stand out are Didsbury, Castlefield in the city centre and Salford Quays, which are all been included in a list produced by The Sunday Times as the most attractive places to call home. It took into account factors such as crime rates, house prices and the performance of schools in the area. The three areas were praised for their restaurants, shops and nightlife, along with good schools and transport links.
Renting in Manchester
For those looking for houses to rent in Manchester, this three bedroom property is available for £550 a month via Rentify. It has a garden and off street parking.
If you are looking for somewhere smaller, this one bedroom flat in Manchester is available to rent for £325 a month via Rentify.
*The yield figure above is reached by multiplying the monthly rent by 12, and then taking this number and dividing it by £110,000 before multiply this figure by 100 to get the final percentage.