Guide to: Investing in Manchester buy to let

Forth Action Invest on January 17, 2023

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Manchester has long been hailed as the ‘capital of the north,’ but post-Covid-19 has seen a wave of people realise this as they move out of London to experience Northern life.

In fact, according to a recent YouGov survey, Manchester is the top-rated city to replace London as the capital. 

And it’s easy to see why: the cost of living is lower, it’s regularly voted as the most liveable city in the UK, it’s a diverse city with great nightlife, world-class education and friendly people.

Beyond everything Manchester currently has to offer, it’s also quickly becoming a major hub for science, tech and all things creative.  

For those looking at investing in Manchester buy to let, here’s everything you need to know…

*Please note this blog does not constitute investment advice. Conducting your own due diligence and being aware of risks before making any investment is key. Seeking independent financial advice may be appropriate.

Manchester buy to let: Best areas

The North West has become a lucrative area, with a good mix of countryside living and city centre luxe. 

As North West property specialists, here at Forth Action Invest, these are our top picks on the best buy to let areas in Manchester for landlords:

• Manchester City Centre [Deansgate, Green Quarter, Northern Quarter, Ancoats or New Islington]
• South Manchester [Chorlton, Didsbury, Levenshulme]
• Salford [Eccles, Swinton, Little Hulton, Walkden]
• Tameside [Ashton-under-Lyne, Hyde, or Dukinfield]
• Trafford [Urmston, Sale, Stretford]
• Prestwich 

To learn more about our best buy to let areas in greater detail, alongside key statistics and rent prices, read our full article here.

Manchester City Centre

If you’re looking for the glitz and glam with a northern price tag, Deansgate is the place to be. This sought-after area provides everything you need at the tip of your fingertips.

Whereas the Green Quarter and Northern Quarter, located close to one another, are trendy neighbourhoods adorned with independent stores, aesthetic coffee bars, and gin distilleries. Both are popular areas for commuters.

East of the Northern Quarter is Ancoats – this area has changed significantly over the last few years and is now considered one of the coolest neighbourhoods in the world (it was officially crowned this in 2021.) This is home to new developments and ‘some of Manchester’s very best places to eat and drink.’

New Islington, however, is perfect for families looking for a welcoming community.

South Manchester

The South of Manchester boasts a more peaceful way of life, with easy access to the hustle and bustle. 

With six neighbourhoods, we recommend investing in Chorlton, Didsbury and Levenshulme. All three offer a quieter suburban lifestyle with great commuter links.

Photo by Joe Cleary on Unsplash

Salford

The areas with the best buy to let opportunities in Salford are Eccles, Swinton, Little Hulton and Walkden. 

All are suburban towns with numerous affordable housing projects, great education, as well as commuter links.

Tameside

Head east of Manchester City Centre and you’ll find the Tameside borough, where the best buy to let investment properties are in Ashton-under-Lyne, Hyde and Dukinfield. 

These three towns are popular with commuters and those who enjoy the fresh air of the nearby countryside. The Cheshire Moors are near Hyde, with affordable prices across all towns for investors.

Trafford

Urmston, Sale and Stretford are for investors who prefer buying in affluent areas. These are a great choice for excellent education and are popular with families and couples looking to settle down. 

Stretford has been dubbed ‘the next big thing’ in Greater Manchester as plans to develop the town centre have been proposed.

Prestwich

Last but certainly not least is Prestwich – a town which was voted as ‘the best place to live in all of Greater Manchester’ in 2022. 

Again, there are plans for a £100m redevelopment, it has amazing transport routes and affordable houses.

For a greater insight into each of these areas, read our more in-depth article here.

*For those who are keen to secure property within this bustling city, Forth Action Invest can help you out with the best investment property Manchester has to offer.*

Why you should invest in buy to let in Manchester

Manchester has pulled on the heartstrings of various types of people, including creatives. The city is home to over 9000 creative and technology-related companies, with over 78,000 people employed by these very businesses. 

More major players are set to move to Manchester as the city has up to 40% lower operational costs in comparison to London. This is becoming a big draw for businesses around the UK.

And the people are following suit. By 2034, the population in Greater Manchester is expected to reach over 3 million people. 

The rental market has risen by 23.4% in the last year alone, which has led to record-hitting heights for rent prices and a consistent increase since April 2021.

But despite the huge demand from potential tenants, there’s a major lack of supply. Properties are getting snapped up very quickly, making this an incredibly attractive place for investors around the world.

Manchester buy to let: The best property types to invest in

Photo by Belinda Fewings on Unsplash

The North West is quickly becoming a dream land for property investors – with growing populations and interest in the areas, the need for each different type of property is increasing. 

The buy to let approach to property investing is the most traditional style and one that tends to fare well in the North West landscape. This can include one, two or three+ bedroom homes. 

And in the North West, there’s a nice fusion between people looking for city living and those aiming for a more tranquil life in the suburbs.

Another property investment type which is becoming popular in Manchester are ‘Houses in Multiple Occupation’ (HMO). This consists of at least three tenants who are not originally from the same household or family.  

HMO’s appeal to a professional tenant, with 46% of HMO tenants falling into the young single bracket – with 47% being students and 41% white collar, clerical or professional workers.

Student housing and HMOs often yield higher rental prices, while family-focused two or three-bed properties work well just outside of the city centre or within commuter towns.

Home to five universities, the city boasts an impressive pool of student renting opportunities – perfect for student housing investors.

Three tips for investing in Manchester’s booming property scene:

Before you get started with your investing process, you must first evaluate your goals and the logistics. 

If you’re a first time property investor, will you be investing under your personal name or through a limited company? It’s important to make these decisions early in your journey. 

It’ll also be beneficial to set a criteria for your portfolio. Think about what return you’re looking for, desired rental yield, locations and property investing style. This way, you’ll feel more prepared to accept deals as and when they come.

Next up is financing. Beyond paying by cash or through a mortgage, you can also invest through utilising the equity in your own home, by raising the finance through family, friends or other investors, or by finding vacant homes. The earlier you decide on this, the quicker you can get going with your investing. Make sure you’re in a safe financial position, it could also be worth speaking to a financial advisor if you’re unsure.

And thirdly, undoubtedly the most important, is finding the best deals in the business. Finding the best bang for your buck is essential and this requires a killer offer strategy. 

For those not based in the North West, start exploring the areas online and join relevant social media groups for locals. To get the best deals, consider partnering with specialists in the area.

At Forth Action Invest, we have a wide network of contacts, housing associations and corporations due to our expertise in the area.

Investing in Manchester buy to let, here’s how:

Investing in Manchester and the North West is an opportunity to get ahead of the rest, as the city is facing a rise in attention since Covid-19.

If you’re ready to enter the property investing world or want to hear more about what Manchester has to offer, we are the North West property investment and development specialists. 

We have unrivalled exclusive and off-the-market opportunities through our close network of professionals.

By partnering with us, you’ll have seasoned experts walking you through each step – or simply helping to find great deals within the North West area.

To learn more about our hands-free property investment services, chat with us today.

*Please note this blog does not constitute investment advice. Conducting your own due diligence and being aware of risks before making any investment is key. Seeking independent financial advice may be appropriate.