Buy to Let investments are proving most successful in Manchester
Location should always be a key consideration when buying a property that you intend to let out. Therefore, it may be important to know that Manchester has just been voted the city with the most successful buy to let properties.
Manchester came out on top of the Buy to Let City Tracker, made by Aldermore Bank. Manchester topped 49 other countries to be voted the best. Although Manchester has faced harsh lockdown measures the local property market has proven resilient.
Aldermore worked out the top 50 cities for buy to let investments based on 5 key factors. The factors were average total rent, lowest number of vacancies as a proportion of housing stock, short term returns through rental yield, long term returns through property price growth and what proportion of people are involved in the rental market.
Manchester’s main selling points are strong rental returns and long-term price growth. These factors ensured Manchester performed highly in 4/5 categories. The City has one of the largest rental markets in the UK with renters making up 31% of the entire population.
Property prices in Manchester have increased by a huge average of 4.1% annually over the past 10 years. Manchester has led property price growth over the lockdown period. Manchester has also greatly benefitted from the stamp duty holiday which has ensured the property market has stayed buoyant over these troubling times.
Demand is high
The past 5 years have seen a huge wealth of investments being focused on Manchester, these are in both the commercial and residential sector. As a result of this Manchester is in high demand from people and businesses. This is making buy to let investments even more necessary as more people will need places to live.
Renting in the UK is up. Compared to 2019 there is 20% more demand for rental properties. This increase in demand and be attributed to individuals changing preferences. Many people are now seeking out homes with more space due to lockdown and home offices are highly sought-after due to the increase of people working from home.