Manchester, the second largest economic area in the United Kingdom, has always been a little bit of a powerhouse in terms of property investment in comparison to the rest of the north of England. In fact, up until recently it held second place in HSBC’s buy-to-let hotspots. Manchester has now taken the top position.
Over the past year, property prices in Manchester have not climbed that drastically. The average property price in 2014 was £104,244 and now it is £108,870. What has changed, however, is rental demand. Rental demand in this fantastic city is stronger than ever. Over the past year, rental income, on average, has climbed by 4%. The average annual rent in Manchester is now at £8,628. There is no sign that this will decrease any time soon either.
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More and more companies are opting to move away from London in order to base themselves in Manchester. As a result, it is likely that more and more people will begin to move into this already packed city. They are going to need somewhere to live. This is going to drive rental prices up even further. In addition to this, Manchester has an incredibly high student population rate. Most of them stick around shortly after graduating too. Again, these people are going to need somewhere to live.
In addition to this, Manchester recently received devolved powers from the British government. The intention of these powers is to help boost the economy in the north of England, something which has always been a bit sub-par in comparison to the southern cities. Roughly £7 billion worth of investment is going to be put into this area of Britain over the next few years. Again, this is going to lead to an increase in house prices and rent.
Now, for those who are looking to buy a property with the intention of selling it rather quickly, Manchester is not the place to look. In fact, very few places in the United Kingdom will give you that much of a profit doing this nowadays, even if you purchase something cheap with the intention of renovating it. Property investment in Manchester is for those who are in it for the long term. A good rental property purchased now, and the vast majority of the city is a good place to buy, will reap dividends for many, many years to come.
Of course, the far lower prices in Manchester in comparison to the southern areas of the United Kingdom make this a brilliant place to invest for newcomers to the market. The risk is fairly minimal, and with the rejuvenation of the north of England coming up over the next few years, property prices are sure to climb even further. Those that get in on the market now are going to be in an absolutely fantastic position and can look forward to a rather hefty amount of profit.