Demand for properties is perpetually high in the UK at the moment, with new households being formed and bringing new tenants and buyers into the market all the time.
Although the appetite for buying homes has increased in the last year thanks to governmental incentives, the average person in the UK still rents for at least three years before they think about buying, leaving landlords with a large target market to aim for.
Picking the right city to invest in is crucial to success – so could Manchester be the best place for you to look for new buy-to-let opportunities?
When choosing an area to buy in, you’ll want to make sure that two factors in particular check out – will there be a suitable demand and will yields make it worthwhile? In both cases, Manchester ticks all the boxes.
Rental yields will be one of the most important aspects of an investment for any landlord, so finding somewhere where your potential income exceeds the average will always be a priority.
According to LSL Property Services, the average rental yield across the UK as a whole currently sits at 5.2 per cent as of the first quarter of 2014.
However, in Manchester, rental yields far exceed this. The latest HSBC rental yield league table has the north-western city in at number five across the whole of the UK, with the mean yield sitting at 7.6 per cent in April this year – well ahead of the national average.
These yields rest on a strong level of demand, an area that Manchester excels in on two fronts – particularly in the centre of the city itself.
The first of these is the student market. There are four large universities in the city alone – Manchester Metropolitan University is the largest campus-based undergraduate university in the UK with a total student population of more than 37,000 – and the city has more students than any other area in Europe.
With students coming from within the UK and from 153 other countries worldwide, it means there is a demand year after year. A high number of foreign students is also good for those looking to let modern apartments, with this demographic typically coming to the UK with a large financial backing and looking for the best places to live.
As well as students, of course, there is also a large demographic of young professionals which has been growing across the city in the past few years.
Traditionally London was the business hub of the UK – particularly post-recession – but this is not so much the case anymore.
Lower office rental prices and increased regional confidence have meant more and more businesses taking the chance to venture north, and Manchester, with its large population and strong office market has benefitted.
As a result, the city has become something of a media hub in recent years – which has, of course, brought an increasing number of aspirational young creative people to the city. The BBC’s relocation of its own Media City to Salford was just one example of this in action, with 2,300 staff making the move from London.
According to research from the Express, the number of 20-somethings now living in Manchester amounts to 123,600, a massive increase on the 78,301 who lived there just ten years ago.
This all adds up to increased levels of demand that landlords investing in Manchester will see, helping to keep yields high and making the city a fantastic place to invest.
And of course, the movement of so many trendy young professionals to the city has meant that the types of bars and restaurants they like to frequent have followed suit, making the city an even more attractive option for aspirational young tenants.
New buy-to-let investment launched
Experience Invest has just launched a brand new, high-yielding, buy-to-let property investment in Manchester.
Located in the heart of Manchester’s city centre, the 90 Princess Street will have a strong appeal for young professionals, commuters and post graduate students.
The development comprises 35 studio, 1 and 2 bedroom apartments which will be completed to an exceptionally high standard and will be delivered fully furnished.
Due to its city centre location, 90 Princess Street will provide investors with a hassle-free way to capitalise on the high demand for rental accommodation in Manchester.
Fully managed by a leading Management Company, investors will receive a passive income of 7.5% NET per annum which will be assured for the first 3 years of the investment.
For more information about this UK buy-to-let property investment, contact Experience Invest today.