Manchester Property Investment: A Safe Haven for Investors
Forth Action Invest on June 5, 2024Â 
Manchester, often celebrated as the UK’s “Second City,” has quietly emerged as a colossal force in the property investment sector, captivating both local and international investors. This evolution is evidenced by its remarkable increase in property values, reinforcing its status as a sought-after investment hub. Data indicates that the average house price in Manchester has surged by approximately 60%, outpacing the national average. Manchester once an old industrial city is now a contemporary, lively urban City. This discourse delves into Manchester’s ascension as a prime location for property investment, highlighting promising areas within the city, effective strategies for investment, top selections for future ventures, and forecasts for the city’s property investment market.
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The Evolution of Manchester as a Property Investment Hub
The city’s evolution into a property investment powerhouse is driven by several factors, chief among them being its booming economy, significant infrastructure upgrades, and a growing population. Manchester’s economy, diversified across various sectors such as finance, media, technology, and education, provides a stable ground for investment. The city’s transport infrastructure, including the Metrolink tram network expansion and the Northern Hub rail project, has vastly improved connectivity, making it an even more attractive option for commuters and, subsequently, investors.
Educational institutions like the University of Manchester attract students globally, creating a constant demand for housing. Additionally, the cultural vibrancy, including the music scene, nightlife, sports, and arts, adds to the city’s allure, drawing in young professionals and families alike.
The growing population of families and young professionals in Manchester is also a testament to the city’s appeal over other UK cities. This demographic trend is not just a byproduct of the city’s economic growth and infrastructural advancements but also its vibrant culture and quality of life.
Manchester’s ability to retain graduates from its universities, including the University of Manchester, further fuels this growth. A considerable number of graduates choose to stay in Manchester post-graduation, attracted by the burgeoning job market in tech, media, and finance sectors. This graduate retention is crucial, as it not only contributes to the city’s skilled workforce but also reinforces the demand for residential and rental properties, making Manchester a hotbed for property investment.
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Established Investment locations in Manchester
Salford: Salford is emerging as a prime investment location, fuelled by significant regeneration projects such as the Salford Quays and MediaCityUK. This area boasts a vibrant cultural scene, modern waterfront living, and excellent transport links, making it a highly desirable place for both young professionals and families. The proximity to Manchester city center, combined with a broad spectrum of property options from luxury apartments to spacious family homes, ensures strong demand and lucrative investment opportunities.
Ancoats : Often dubbed as one of the coolest neighborhoods globally, this area is ripe for investors looking to cater to a hip, young demographic. Its blend of modern apartments, historic mills converted into chic lofts, and a burgeoning food scene makes it a vibrant community for investment.
 South Manchester (Didsbury & Chorlton): Known for their leafy streets, excellent schools, and trendy lifestyle options, these neighborhoods appeal to families and young professionals alike. Buy-to-let & HMO investors are particularly keen on these areas due to high rent achievable for living in these postcodes. As of late 2023, the average rental price for a two-bedroom apartment in Didsbury is approximately £1,200 per month. Larger properties, such as three-bedroom family homes, typically range between £1,800 and £2,500 per month,
Altrincham: is another well established location for property investment in Manchester, renowned for its top ranking schools, successful market revitalization and community-focused living. It boasts a thriving town center, known for its award-winning market, boutique shops, and a diverse array of dining options that cater to an affluent middle class. The area offers a blend of residential properties, from Victorian terraces to modern apartments, making it attractive to both families and professionals. Its strong transport links to Manchester city center enhance its appeal as a commuter hub, driving demand for housing and investment opportunities. Altrincham overall is a fantastic location for property investors with a larger capital allowance who are looking for a stable location with desirable tenant pool.
Stockport: This area is witnessing a renaissance, evolving into an enticing hub for property investment. With substantial investments into local infrastructure and the development of Redrock, Stockport’s leisure and retail complex, the town is rapidly becoming more attractive to both residents and investors. Its rich heritage, combined with modern amenities, provides a unique living experience. Stockport benefits from excellent rail and road links, making it a practical choice for commuters to Manchester city center. The local property market is diverse, offering everything from historic terraces to contemporary apartment complexes, catering to a broad spectrum of buyers and tenants. The ongoing regeneration projects and the rise in local employment opportunities are set to further boost the area’s popularity and property values.
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Effective Investment Strategies in Manchester
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Buy to Let
The demand for rental properties in Manchester is high, driven by its growing population and influx of students, professionals, and young families. With numerous universities attracting students from around the globe, and a thriving job market pulling in professionals, the city continuously experiences an increased need for housing. This consistent demand makes buy-to-let a stable and lucrative investment option, offering investors the opportunity to benefit from both steady rental income and potential property appreciation over time. Additionally, Manchester’s ongoing development projects and vibrant cultural scene further enhance its appeal, ensuring a sustained interest in rental properties.
HMO (House in Multiple Occupation)
Given the significant student population and the number of young professionals looking for affordable accommodation post graduation , HMO investments in Manchester are a no brainer. Typically rooms across the more in demand location in Manchester can achieve upwards of 200 enquirers when advertised using online portals such as Rightmove and Spareroom. Given the the time of this publish average rents across Manchester for en-suite rooms range from £650 – £700 per month. Although HMO investments can offer high yields in Manchester it is also worth noting they do come with intensive Property management and compliance regulations with the local authority. There are also Article 4 restrictions to consider which are implemented borough-wide. These restrictions are in place to prevent prevent further HMO conversions. – Head to our essential guide on investing in Article 4 areas for more on this topic.
Short-Term Lets
With Manchester’s tourism on the rise and being home to two of the world’s largest football clubs, Manchester United and Manchester City, the city attracts a significant number of visitors. These clubs boast massive global followings, and their participation in European competitions like the Champions League greatly boosts local tourism.
A busy events calendar further enhances Manchester’s appeal, making short-term rentals a flexible and lucrative investment strategy. These rentals cater to tourists, business travelers, and families visiting for short stays, allowing for higher rental rates and the opportunity for property owners to use the space when it’s not rented out.
However, short-term lets come with their own challenges, such as the costs of furnishing the property and managing frequent guest turnover. Landlords must also comply with regulations and obtain the necessary licenses before pursuing this type of investment.
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Top Picks for Future Manchester Property Investment Hotspots
Eccles. Situated just a short distance from Manchester city center, Eccles is an area on the rise, thanks to its affordability, green spaces and transport links. With its convenient Metrolink service to Manchester, Salford Quays, and MediaCityUK, Eccles offers easy access to major employment areas, making it an attractive location for both professionals and families. The town is also home to the famous Eccles cake, symbolizing its rich cultural heritage. Property prices in Eccles are currently more affordable compared to the city center, presenting an excellent opportunity for investors looking to capitalize on the area’s growing demand.
Dukinfield. This suburb, nestled between Manchester and the foothills of the Pennines, offers a blend of urban convenience and natural beauty. Dukinfield is experiencing a growth in popularity among young families and professionals seeking a quieter lifestyle without sacrificing access to Manchester’s urban core. The area boasts a variety of housing options, from traditional terraced houses to modern apartments, making it a versatile choice for property investors. With several local amenities, including parks, schools, and shopping centers, Dukinfield promises a balanced lifestyle and represents a smart, long-term investment as the demand for suburban homes continues to rise.
Oldham. Oldham is undergoing a transformation, evolving into a vibrant suburb with a diverse demographic. Its affordability, compared to Manchester city center, makes it an ideal spot for first-time homebuyers and investors alike. Oldham’s rich cultural scene, highlighted by the annual Oldham Carnival and investments in arts and entertainment, adds to its allure. The area’s comprehensive transport links, including future plans to enhance connectivity with Manchester, further boost its investment potential. For those looking to invest in a location with a strong sense of community, regeneration prospects, and a growing demand for housing, Oldham presents an appealing option.
Rochdale. Rochdale is garnering attention as an up-and-coming suburb with significant investment opportunities. The town combines historical charm with modern development, showcasing a mix of beautiful Victorian architecture and contemporary housing projects. Rochdale benefits from excellent transport links, including a Metrolink tram service that ensures swift access to Manchester city center. Local amenities such as schools, healthcare facilities, and shopping centers are well-developed, catering to the needs of a diverse population. Additionally, ongoing regeneration projects aimed at enhancing the town’s infrastructure and public spaces make Rochdale a promising location for property investors looking to tap into a market with both immediate and long-term growth potential.
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Future Predictions for Manchester Property Investments
Manchester’s property market shows no signs of slowing down. With ongoing investments in infrastructure, continuous population growth, and a strong and diversified economy, property values and rental demand are expected to keep rising. The city’s commitment to development projects, such as the Northern Gateway and the expansion of the Science and Industry Park, promise to unlock even more investment opportunities.
With the city firmly asserting itself as a leading destination for investors seeking growth, stability, and diversity in their portfolios. Whether you’re a seasoned landlord or looking to make your first investment, Manchester offers a compelling proposition that’s hard to overlook.
At Forth Action Invest, we pride ourselves on being the leading experts in residential investments throughout the burgeoning markets of the North West. We offer our investors unparalleled access and vital insights into the most lucrative investment locations within the region. For those seeking to explore our current investment opportunities, we invite you to visit our website and sign up for an exclusive membership.