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Manchester Buy To Let Investment Guide
Manchester Buy To Let Investment Guide
Table of Contents
About Us
Star Sterling is a top-tier real estate and citizenship by investment advisory firm that was established in 2019 and has offices in both the United Kingdom and Pakistan.
We specialise in uncovering wealth-building possibilities in global real estate for investors all across the world. Our mission is to provide our clients with access to high-quality, income-generating properties in some of the world’s most dynamic real estate markets. With years of experience and a commitment to excellence, we have established a reputation as one of the most trusted and reliable advisers in the industry.
At Star Sterling, we believe that investing in property should be accessible to everyone, regardless of their investment experience or portfolio size. Our team of experts is dedicated to helping our clients navigate the complexities of the property investment market and find the right opportunities to meet their individual needs and goals. Whether you are a first-time investor or a seasoned property professional, we have the knowledge, experience, and resources to help you succeed.
Our investment portfolio features a range of properties in some of the most sought-after locations, including the UK, USA, Dubai, Turkey and Europe. Our developers and properties are carefully selected based on rigorous due diligence, ensuring that they meet our high standards for quality, location, and potential for long-term returns. We are committed to providing our clients with the best possible investment opportunities and to delivering consistent and reliable returns over the long term.
Introduction
Manchester continues to attract investors, students, professionals, homeowners, and tenants alike. In 2023, Manchester’s property investment market is thriving, making it an ideal destination for buy-to-let investors. The city’s growing popularity and strong rental demand have positioned it as a lucrative opportunity for those seeking to invest in Buy-to-Let Manchester.
With its diverse range of properties and favourable market conditions, Manchester offers numerous options for buy-to-let investments. The city’s vibrant real estate market presents an array of opportunities, attracting investors who are keen on buying property in Manchester.
Buy-to-let investments in Manchester have gained significant traction in recent years, and this trend is set to continue in 2023. The city’s steady population growth, coupled with a flourishing economy, ensures a consistent demand for rental properties.
Investors exploring the buy-to-let market in Manchester can benefit from the city’s competitive rental yields and potential capital appreciation. With the average house price standing at £234,841 in January 2023, buying property in Manchester presents a promising prospect for long-term returns on investment.
Manchester’s status as a vibrant and dynamic city further bolsters its appeal to both tenants and investors alike. Its rich cultural heritage, renowned sporting venues such as the iconic Old Trafford stadium, and thriving business sectors contribute to the city’s allure as a prime location for buy-to-let opportunities.
Whether you are an experienced investor or new to the buy-to-let market, the Manchester property investment scene provides a fertile ground for growth and profitability. By capitalising on the Manchester property investment, investors can secure a steady income stream and benefit from the city’s upward trajectory in the real estate market.
The Thriving Market of Buy-To-Let Manchester
The remarkable progress witnessed by the Manchester property investment sector in recent years is indisputable. Manchester property investment has become a lucrative opportunity for investors looking to buy property in the city. Despite the adverse effects of lockdown on various sectors across the UK, the buy-to-let Manchester market has continued to flourish, attracting a growing number of residents to the city. The Buy-to-let Manchester market boasts a remarkably robust private rented sector, which significantly contributes to the region’s overall economic value. With the increasing popularity of city-Centre living in recent years, Manchester’s population experienced a 0.73% growth in 2020, reaching a total of 2,750,000 residents (as of July 2021).
It is anticipated that this figure will escalate significantly in the next five years, driven by ongoing development plans, promising career prospects, and forthcoming transport infrastructure projects. Manchester has gained recognition as one of the premier destinations in the country for landlords interested in buy-to-let Manchester properties, thanks to a rental market that has consistently strengthened over the years due to escalating demand. Presently, over 31% of Manchester’s population resides in privately rented properties, and many portfolio landlords enjoy comfortable rental yields of around 8% in prime areas of the city.
The buy-to-let Manchester market offers excellent opportunities for those interested in buying property in Manchester. The city’s thriving property investment sector and strong rental market make it an attractive choice for investors. If you are considering investing in buy-to-let Manchester property, whether for buy-to-let purposes or long-term capital growth, now is a great time to explore the opportunities available in this vibrant city.
Opportunity (Why Invest In Manchester?)
Manchester is a city that has a lot to offer to potential investors. The city has a strong economy that is diverse and growing, with a Gross Value Added (GVA) of £62.8 billion in 2019. This is thanks to its thriving industries, which include healthcare, digital and creative, advanced manufacturing, and financial and professional services. As a result, Manchester has attracted many businesses and investors who have contributed to its economic growth.
Furthermore, Manchester has a rapidly growing population, with an estimated population of over 2.9 million people in the Greater Manchester area. This growth is expected to continue in the coming years, meaning there will be a high demand for new housing, infrastructure, and services. This makes it an attractive destination for Manchester property Investment,
and investors who are looking for opportunities in a growing market of Buy-to-let Manchester. Moreover, the city is known for its cultural scene, which includes a thriving music, arts, and entertainment industry, making it an attractive destination for tourists and locals alike.
Another reason to invest in Buy-to-let Manchester is the city’s well-connected transport system. Manchester is well-connected to other major cities in the UK, with fast and frequent train services to London and other key locations. The city also has an international airport, making it easy to travel to and from other parts of the world. This connectivity has made Manchester a hub for business, with many multinational companies having established their UK base in the city.
Overall, Manchester has a lot to offer to potential investors, with a strong and diverse economy, a growing population, a vibrant culture, and excellent transport links. These factors make it an attractive destination for property investment, business investment, and other types of investment. As the Buy-to-let Manchester sector continues to grow and develop, it is likely to present even more opportunities for those who choose to invest in it.
Fundamentals of UK & Manchester (General & Property History)
Manchester property investment has become increasingly attractive in recent years due to the city’s strong economic and cultural identity. As a result, many investors are considering buy-to-let Manchester properties as a lucrative option. Manchester, located in the north-west of England, has a rich history rooted in its industrial past.
During the Industrial Revolution, Manchester experienced rapid growth, fueled by its strategic location and access to key resources like water and coal. The textile and cotton industries flourished, making Manchester the world’s largest producer of cotton goods by the mid-19th century.
Today, Manchester’s industrial heritage is still visible through its preserved mills, warehouses, and factories. However, the city has undergone significant redevelopment, with a focus on diversifying its economy and fostering sustainability.
Manchester now boasts a thriving healthcare sector, a digital and creative industry, advanced manufacturing, and financial and professional services. Its cultural scene is also vibrant, with a flourishing music, arts, and entertainment industry.
The city’s population has experienced rapid growth, reaching over 2.9 million people in the Greater Manchester area. This expansion can be attributed to various factors, including the city’s economic success, cultural appeal, and excellent transportation links.
Given its rich history, diverse industries, and strong fundamentals, Manchester offers promising opportunities for property investment. Buyers interested in purchasing property in Manchester can explore the thriving buy-to-let market and take advantage of the city’s ongoing growth and development. Whether you’re looking to invest for long-term capital growth or rental income, Manchester’s property market presents an enticing prospect.
Popular Iconic Destinations
- Whitworth Art Gallery
- RHS Garden Bridgewater
- HOME
- Manchester Art Gallery
- The Quays
- Castlefield Viaduct
- Ordsall Hall
- Victoria Baths
- The Gay Village
- John Rylands Library
Economy
Manchester property investment offers excellent opportunities for those looking to buy property in the city. Despite the challenges posed by the COVID-19 pandemic, the Manchester property investment market has shown resilience and is expected to continue growing in the coming years. In fact, Manchester has been recognized as the fastest-growing major city in the UK, with a projected growth rate of 6.8% over the next five years. This makes it the perfect location for buying property in Manchester.
The city’s digital technology sector has played a pivotal role in driving its economic growth. Manchester has become a thriving hub for innovative start-ups and established tech firms, attracting major players like Amazon, Google, and IBM. This robust digital technology sector is poised to further expand in Manchester, benefiting from the city’s renowned university system and reputation for fostering innovation and creativity.
Manchester is also a significant centre for financial and professional services. Major banks such as HSBC, Barclays, and the Co-operative Bank have a presence in the city, alongside numerous other financial services firms. The legal and accounting sectors are also prominent in Manchester, with several large firms operating in the city. As Manchester continues to attract investment and strengthens its global connections, the financial and professional services sector is expected to experience further growth, making it perfect for buying property in Manchester.
With Manchester’s strong economic prospects and diverse industries, buying property in Manchester presents an attractive investment opportunity. The city’s thriving property market, coupled with its growth in key sectors, makes it an ideal choice for investors interested in buy-to-let Manchester properties or long-term property investments. As Manchester continues to experience steady economic growth and holds a positive outlook for the future, Manchester property investment remains a promising venture for many investors.
Facts & Figures
Current population: 586,100
Business:
1) Manchester’s economy is experiencing remarkable growth in the field of Manchester property Investment. It is growing faster than any other UK city outside London. According to data from the Centre for Cities, Manchester’s economy witnessed a staggering growth rate of 3.6% in 2019, surpassing the UK average of 1.7%.
2) Buy to let Manchester properties are attracting attention in the city’s thriving market. Manchester has become a hub for tech startups, and the buy to let Manchester sector is booming with successful companies such as AutoTrader, The Hut Group, and On The Beach all choosing to base their operations in the city.
3) In 2021, Manchester City Council announced ambitious plans to invest a significant sum of £1.5 billion in renewable energy projects over the next five years. This investment will not only contribute to the city’s goal of becoming a zero-carbon city by 2038 but also stimulate job creation and bolster the local Manchester property Investment sector.
Tourism:
1) Manchester’s popularity as a tourism destination is soaring. The city attracts a considerable number of domestic and international tourists, with over 34 million visitors recorded in 2019, including 1.4 million from overseas. Tourists are drawn to the city’s diverse attractions, including museums and galleries like the Museum of Science and Industry, the Manchester Art Gallery, and the National Football Museum. Furthermore, Manchester’s vibrant music scene has produced world-famous bands like Oasis and The Stone Roses.
2) Shopping enthusiasts can indulge themselves in Manchester’s premier shopping destinations, such as the Manchester Arndale, the largest city-centre shopping centre in the UK. The city’s nightlife is equally renowned, with a wide array of bars, clubs, and music venues catering to diverse tastes, providing ample entertainment options for residents and tourists alike.
3) The prospects for Manchester property Investment remain robust, thanks to the city’s thriving economy, flourishing tech industry, and attractions that make it an appealing destination for tourists. Investors seeking buy to let Manchester properties or individuals interested in buying property in Manchester can take advantage of this thriving market and capitalise on the city’s ongoing growth and development.
Transactions:
12.7K property sales in Manchester in the past year
Rents:
Rents increasing – average value up 10.51%
Property Supply & Demand (UK / Manchester wide)
The Manchester property Investment market is witnessing a surge in demand due to various factors. Similar to other regions in the UK, Manchester has experienced a high demand and a limited supply of properties. This situation has resulted in a steady increase in property prices, particularly in sought-after areas like the city centre and its surrounding suburbs.
The COVID-19 pandemic has played a significant role in driving the demand for Manchester property Investment. Many individuals have been seeking to relocate from larger cities such as London to more affordable areas like Manchester. This trend has been further accelerated by the growing prevalence of remote work, which has made it feasible for people to reside farther away from their workplaces.
However, Manchester property Investment has been constrained, particularly in popular areas. Various factors have contributed to this shortage, including a lack of new construction. Developers have encountered challenges such as disruptions in the supply chain, scarcity of labour, and rising costs of materials.
The combination of high demand and limited supply has resulted in the upward trajectory of property in Manchester property Investment. According to Zoopla data, the average house price in Manchester experienced a notable increase of 8.2% in the year leading up to August 2021, surpassing the national average increase of 5.9%. Despite the rising prices, Manchester continues to offer comparatively more affordable options in the property market when compared to many other regions in the UK.
Is It Safe To Invest In UK Property? (Legal system)
Manchester property investment has gained a reputation as a safe and promising option for investors. The city’s strong economy, growing population, and comparatively affordable property prices make it an attractive choice for those considering buy-to-let Manchester properties or long-term property investments. Manchester offers a diverse economy with key industries such as finance, digital technology, and advanced manufacturing, contributing to job creation and population growth.
The Manchester property Investment has shown consistent performance, with property prices steadily increasing in recent years. According to data from Zoopla, the average house price in Manchester rose by 8.2% in the year leading up to August 2021, surpassing the national average increase of 5.9%. However, it is important to acknowledge that like any property market, there are inherent risks associated with investing in Manchester property.
One significant risk is the possibility of a downturn in the property market. Should property prices decline, investors could face the challenge of owning a property that is worth less than its purchase price, potentially leading to difficulties in selling it for a profit. It is also crucial to consider other risks, including changes in government policies, economic downturns, and fluctuations in the local real estate market.
To make informed investment decisions, thorough research is essential. Seeking advice from qualified professionals and carefully assessing your personal financial situation and investment goals is crucial. By doing so, you can better understand the dynamics of the Manchester property investment market and mitigate potential risks, ensuring a more secure investment strategy.
Population (Historic Growth, Forecast)
According to the latest data available at my knowledge cutoff date of September 2021, the population of Manchester, a prime location for property investment, was estimated to be around 586,100. This signifies a significant increase of approximately 8.6% since the last census conducted in 2011 when the population was recorded as 503,000.
The city of Manchester has been witnessing steady population growth in recent years, attributed in part to its robust economy and expanding job market. The city’s appeal has grown among young professionals and students due to its vibrant cultural scene and reputation as a center for innovation and creativity.
Looking ahead, the population of Manchester is expected to continue its upward trajectory in the years to come. The Greater Manchester Combined Authority has forecasted an 8.4% population growth for the city region, encompassing Manchester and its surrounding areas, between 2018 and 2038. This would result in an increase from 2.8 million to 3.0 million people.
The forecast also predicts that the population of Manchester itself will continue to grow, reaching an estimated 612,000 residents by 2038. This growth is anticipated to be driven by a combination of natural increase, with more births than deaths, and net migration, particularly from international sources. As the population of Manchester continues to expand, the demand for buying property in Manchester and investment opportunities in the city are expected to remain strong.
- Local Nationalities Mix
The city of Manchester is culturally diverse. Non-whites comprised 33.3% of the population in 2011.
Manchester is composed of the following racial and ethnic groups:
White (66.7%), Asian (17.1%), Black (8.6%), Mixed Race (4.7%), Arab (1.9%), and Other (1.1%).
- Residents Age Profile
Age Groups Persons
0-17 years 654,085
18-64 years 1,759,240
65+ years 454,427
Regeneration Plan
Throughout the previous years and decades, Manchester’s cityscape has undergone a remarkable transformation, making it an attractive destination for property investment. With a focus on revitalization and regeneration, the city centre has witnessed the demolition of old buildings and the construction of new, modern skyscrapers, creating a vibrant and contemporary living environment.
Manchester has seen numerous construction projects, both individual and part of larger regeneration initiatives aimed at revitalising and transforming the city’s neighbourhoods. Prominent examples include the successful redevelopment of Spinningfields, which stands as a testament to the positive outcomes of these initiatives. Additionally, ongoing projects like NOMA promise further enhancements and contribute to the city’s ever-evolving landscape.
These regeneration initiatives have played a significant role in reshaping Manchester, attracting investors and creating opportunities for buying property in Manchester. The city’s commitment to renewal and progress ensures a promising future for both residents and investors alike. As Manchester continues to evolve, the potential for property investment in the city remains highly appealing.
- Spinningfields
- NOMA
- MediaCityUK
- Ardwick
- St John’s
Largest Employers In The City
- Unilever
- Kelloggs
- Siemens
- Iceland
- Klarna
- Amazon
- Microsoft
- United Utilities
- Booking.com
- Arup
Education
Universities:
Manchester boasts a thriving education sector, making it an appealing destination for property investment, including buy to let Manchester properties. The city is home to renowned universities, such as the University of Manchester and Manchester Metropolitan University, both of which provide excellent educational opportunities for students. The University of Manchester, as a member of the prestigious Russell Group of universities, offers a wide range of academic programs and research opportunities.
Colleges:
There are also many colleges in Manchester, including The Manchester College, which is one of the largest further education colleges in Europe, and provides a range of courses, from vocational qualifications to A-levels.
Schools:
Manchester also boasts a rich selection of schools, encompassing both public and private institutions, catering to students of all ages. The city is home to exceptional primary schools, secondary schools, and sixth-form colleges, many of which enjoy a high reputation for their quality of education.
Moreover, Manchester extends its commitment to education beyond formal institutions. The city offers various resources and opportunities through organisations and community groups, such as the Manchester Adult Education Service and the Manchester International Society, which provide additional educational and training programs to enhance learning experiences.
With a comprehensive education system that caters to learners of all ages and backgrounds, Manchester offers a supportive environment for personal and academic development. This strong educational foundation further enhances the appeal of buying property in Manchester, especially for those interested in the buy to let Manchester market.
Transport Facilities
Manchester is a well-connected city with a range of transport facilities available to its residents and visitors.
Public Transport:
The public transport system in Manchester is operated by Transport for Greater Manchester (TfGM) and includes buses, trams, and trains. The bus network covers the entire city and surrounding areas, with frequent services and a range of ticket options. The Metrolink tram system has six lines that run throughout Greater Manchester, and offers a fast and convenient way to travel. Manchester also has several train stations, including Manchester Piccadilly and Manchester Victoria, which provide links to destinations across the UK.
Cycling:
Manchester is also becoming increasingly cycle-friendly, with dedicated cycle lanes and bike rental schemes available throughout the city. There are also a number of cycle paths and routes that make it easy to cycle around the city and beyond.
Taxis:
Taxis are also widely available in Manchester, with many private hire companies operating in the city. Uber is also available in Manchester.
Airports:
Manchester Airport is the third busiest airport in the UK and offers flights to destinations all over the world. The airport is well connected to the city centre by train, bus, and taxi.
Overall, Manchester has a range of transport facilities that make it easy to get around the city and beyond, whether you’re travelling by public transport, cycling, or using private hire services.
Tourism
Manchester is a vibrant and exciting city with plenty to see and do. Here are some of the top things to do for tourists visiting Manchester:
Visit the National Football Museum: Football (soccer) is a huge part of Manchester’s culture and history, and the National Football Museum is a must-visit for any sports fan.
Take a tour of Old Trafford: Home to Manchester United, Old Trafford is one of the most famous football stadiums in the world. Visitors can take a tour of the stadium and learn about the club’s history.
Visit the Museum of Science and Industry: This fascinating museum explores Manchester’s industrial heritage and features a range of interactive exhibits and displays.
Explore the Northern Quarter: This trendy neighbourhood is home to a variety of independent shops, bars, and restaurants, as well as some impressive street art.
Visit the Manchester Art Gallery: This free gallery is home to a wide range of artworks, including paintings, sculptures, and decorative arts.
Take a walk in Heaton Park: This huge park covers over 600 acres and features a lake, a farm, a golf course, and plenty of walking and cycling trails.
Explore the Manchester Cathedral: This stunning cathedral dates back to the 15th century and is home to some impressive architecture and artwork.
Visit the John Rylands Library: This beautiful library features an impressive collection of rare books and manuscripts, as well as some stunning architecture.
Take a canal boat ride: Manchester’s canals are a great way to explore the city from a different perspective. Visitors can take a guided boat tour or rent their own boat.
Enjoy the nightlife: Manchester has a vibrant nightlife scene, with a wide range of bars, clubs, and music venues to suit all tastes.
Crime
Crime Index: 45.18
Safety Index: 54.82
Manchester, like any other major city, has a certain level of crime, but the crime index can vary depending on the source of the data and the specific areas within the city. According to Numbeo, a crowd-sourced database of user-contributed data, the crime index for Manchester as of February 2023 is 45.18 out of 100, which is considered moderate. The safety index is 54.82 out of 100, indicating that Manchester is generally considered safe, but visitors and residents should still exercise caution and common sense. It is important to note that crime can vary depending on the specific area within the city and the time of day, and it is always advisable to take necessary precautions to ensure personal safety, such as being aware of your surroundings, avoiding secluded areas at night, and not leaving personal belongings unattended. It is also advisable to stay informed about any potential safety concerns or risks, and to follow the advice of local authorities.
Weather
The summers in Manchester are pleasant, the winters are cold and snowy, and the weather is always partly cloudy. The average annual temperature ranges from 16°F to 83°F, rarely falling below 1°F or rising over 91°F.
Facts & Figures (Manchester)
Capital growth in 2022: Property prices in Manchester grew on average by 11.40% over the last 12 months
Average rental yield in Manchester: 7.40%
Transactions: 12.7k property sales in Manchester in the past year
Rents:
Rents increasing – average value up 10.51%
Steps To Buy A Property In The UK?
Here are the important considerations when purchasing property in the United Kingdom as an investor to help you get started.
- Locate a Property
Begin your search by using property search websites, consulting with estate agents, or reaching out to property investment firms. These resources can help you find your ideal property in your desired location.
- Consider Mortgage Options
If you require financial assistance, explore mortgage options. Note that as a foreign buyer, some UK lenders may have restrictions, and you might need to provide a larger down payment. Consulting with a mortgage broker can help you understand your choices.
- Assess the Property Taxes
Familiarise yourself with the UK tax landscape related to real estate investment. Seek guidance from a tax professional to understand the essential taxes and explore strategies to minimise expenses.
- Employ a Lawyer
Engage a solicitor who specialises in property transactions to guide you through the legal aspects of the buying process. A solicitor will assist with due diligence, ensuring there are no legal issues with the property, and facilitate necessary surveys.
- Make a Proposal
Once you have identified a property of interest, make an offer. This offer is contingent upon the execution of a contract, and both parties will only be legally bound upon contract exchange. If the seller accepts your offer, you can proceed further.
- Begin the Conveyance
After the seller accepts your offer, you will enter the conveyancing process. A Memorandum of Sale will be prepared to confirm the terms of the sale. You will also need to provide identification and address verification to comply with Anti-Money Laundering regulations.
- Exchange Agreements
At the point of contract exchange, the property transaction becomes legally binding. Before the exchange, both parties have the option to withdraw. Once contracts are exchanged, the purchase/sale becomes obligatory, and a deposit, typically 10% of the property’s purchase price, is transferred. The completion date and legal documentation will also be finalised, with penalties for cancellations after the contract exchange.
- Finalise the Procedure
Once the remaining funds are verified by the seller, the transaction is finalised. At this stage, you will also need to pay the stamp duty. Your solicitor will handle the transfer of title deeds, transfer deeds, and Land Registry registration, officially making you the property owner.
By following these steps and seeking professional guidance where necessary, you can navigate the process of buying property in Manchester or any other location in the United Kingdom with confidence.
Conclusion
In conclusion, Manchester property investment offers promising opportunities for those interested in the buy to let Manchester market or buying property in Manchester. The city’s strong and growing economy, coupled with its rapidly expanding population, make it an attractive destination for investors.
With ongoing regeneration projects and a thriving cultural scene, Manchester continues to attract residents and businesses alike. Its excellent transport links connect it to other major cities, enhancing its appeal. The high demand for new housing and infrastructure further contributes to the potential for property investment in Manchester.
Before making any investment decision, it is essential to conduct thorough due diligence and research. However, considering the city’s robust economic and demographic foundations, Manchester is likely to provide numerous opportunities for property investors in the years ahead.
Whether you are new to property investment or an experienced professional, Manchester offers a variety of areas and property types to choose from. Additionally, the supportive local government’s commitment to growth and development creates a favourable environment for investors.
By investing in property in Manchester, you can position yourself for long-term financial success and portfolio growth. Take advantage of the city’s potential and explore the opportunities it presents in the dynamic property market.
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