One of the largest cities in the UK, Manchester is increasingly becoming the destination of choice for tenants looking to avoid the high premiums that are an unavoidable aspect of renting in the capital, in addition to the attractiveness of a location with excellent transport links, both into and out of the city.
Knight Knox International’s Sales Director Martin Copland echoes this sentiment, commenting, “The buy-to-let market in Manchester has become increasingly popular over the last 12-months, with landlords looking for rental stock in prime locations like the city centre and Salford Quays”.
The latest information reported in the LSL Property Services Buy-to-Let Index, highlights how London buyers need to supply larger cash deposits than anywhere else in the country. Couple this with a 1.7% increase in North West rents and there is a strong indication that property in cities like Manchester is a much savvier investment for landlords, particularly over the long-term.
The Manchester property market is unique to most major cities, as there has been little-to-no new-build property since the price crash. Rental prices have continued to rise over the past five years at a rate that the properties haven’t, but the market is starting to turn and property prices are rising, making Manchester a great area for investment.
“With distressed property becoming increasingly hard to come by, we are finding that the prices on buy-to-let properties are rising because of the strength of the rental yield, allowing for a more lucrative investment for our buyers,” Copeland further comments.
The Private Rental Sector in general is painting a positive picture of the UK property market. Indeed, research from Paragon Mortgages’ PRS Trends Q2 Report highlights how the second quarter of 2012 has shown a marked increase in the average size of property portfolios, in addition to an increase in average yields (rising from 6.2% in Q1 to 6.5% in Q2) and a confidence from landlords that tenant demand is continuing to grow.
A city ripe for investment, Manchester is currently undergoing a period of intense regeneration, with plans submitted for a new £100million town hall complex and a £113million regeneration scheme throughout the Greater Manchester area. The new Media City site in Salford Quays is an additional boon to the city, with a £70million complex of designer shops, bars, restaurants and cinemas, in addition to being home to the brand new BBC and ITV studios and the famous Lowry Theatre.
International property specialist Knight Knox International currently has two buy-to-let opportunities available in Manchester, both in prime locations and generating higher-than-average yields.
XQ7, Salford Quays – from £115,000: These stylish 2-bed apartments on the banks of Salford Quays offer 8% gross yields, private parking, 24hr concierge service and private access to the Exchange Quay Metrolink station. Within walking distance of The Lowry theatre and the exciting new Media City development, these plush apartments bring city centre living to the suburbs.
Delta Point, Manchester City Centre – from £110,000: Perfectly located a mere 10-minute walk from the main shopping area of Market Street, these 2-bedroom apartments are ideal for both residents and commuters, with direct access to all major driving routes and close to bus, rail and metro stations in the city.
For further information on any of the investment opportunities mentioned in this article, or to discuss expanding your property portfolio, please contact the Knight Knox International team on +44 (0)161 772 1370.