Property is consistently hitting the top of many investors’ to-do lists – and for a good reason too.
Reliable in a crisis, property has always remained resilient in times of turmoil.
And, if you’ve been paying attention to the headlines lately, this is something which is particularly useful for UK investors.
With the equally inconsistent value of the pound and the threat of skyrocketing interest rates, many UK buyers might be a bit unsure of putting their money into the property market.
Unlike other sectors of the UK economy at the moment, the housing market is a remarkably stable one. This is because housing is a physical asset, making it likely to see growth in value over time.
Take a look at the property market’s condition throughout the pandemic. In 2021, right in the midst of Covid-19, reports found that UK property prices were increasing at the fastest rate since 2004, with Rightmove finding that buyer demand was twice as high as pre-pandemic levels as a result of pent-up demand caused by three UK national lockdowns.
So, you know that you should invest in property, but where?
Finding the right location to invest is probably one of the most important things to consider – and could mean the difference between a successful investment and a failing one.
Property investment in Manchester, for example, is known to generate strong rental yields, so long as you’re targeting the right spots.
Why is Manchester property investment potentially so lucrative?
Well, here’s a list of the top 3 reasons to invest!
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According to the House Price Index, in the year up to July 2022, house prices in Manchester grew by a substantial 11.6%.
A contributing factor to this growth has undoubtedly been the population growth in the city in the past few years and the consequential higher demand for housing.
The population of Manchester has increased by approximately 60,000 (from 2,710,00 to 2,770,000) between 2018 and 2022.
This is fantastic news for those looking to invest in buy-to-let properties in the area, as there is likely to be a steady stream of tenants for the foreseeable future.
One of the biggest reasons Manchester has seen a massive influx in its population numbers over the past two decades is its commitment to regeneration.
The introduction of these efforts has led to a whole host of investors flocking to the town to take advantage of its unique and affordable investment opportunities.
Even if you can somehow ignore the huge £1.5bil Spinningfields regeneration project –the city has plenty more developments planned in the pipeline that are sure to catch your eye.
One of the most notable is the estimated £800m NOMA project in the North of the city and a scheme to redevelop the Northern Gateway, which is expected to be worth almost £1bn.
Rising Student and Young Professional Demographic
Home to some of the best universities in the country and considered an international centre of industry, Manchester is a popular choice for many buy-to-let investors thanks to the many jobs available in the city and skyrocketing property values.
With over 100,000 students in Greater Manchester – and a large chunk based in the city of Manchester – the region is a fantastic option for both residential and student property.
Student accommodation is a compelling option for property investors looking at Manchester City Centre – with higher rental yields and lower average house prices than residential property.
What happens, though, when these students graduate?
Well, London – once considered the place to be for young professionals – is now bottom of many people’s lists, with the high cost of living in the capital leading many to look elsewhere.
The good news is that those that study in Manchester are often likely to stay – with around 51% of graduates choosing to stay in the city to develop their careers.
Many significant businesses and start-ups reside in Manchester, offering young professionals lots of opportunities to succeed in the city.
This has, of course, led to a notable sector of young professionals working in the city – creating a necessary space in the housing market for investors to capitalise on.
According to Numbeo, Manchester consumer prices, including rent, were 32.31% lower than London last year, with 13% of inhabitants leaving the capital to move up North.
With respectably high rental yields and solid growth, it could be said that Manchester has almost everything a property investor should look for in 2022!