The buy-to-let market remains stable in Manchester despite concerns surrounding coronavirus. Whilst other investment sectors have suffered during these uncertain economic times, property has naturally persevered as one of the only core dependable investment opportunities around and Manchester’s position as one of the UK’s top buy-to-let property investment hotspots is set to continue.
The UK property investment market is one of the oldest and safest asset classes in the world. Research recently conducted by Property Hub revealed that 98% of investors still considered property to be a great long-term investment. Highlighting that interest within the market certainly hasn’t dampened due to the pandemic.
According to Zoopla, house prices have grown by 27% since 2015, with growth set to increase a further 4.1% this year. Due to these increases, more people than ever before are choosing to live in rental accommodation, and for longer. Combine that with the hypothesis that the UK’s population will reach 70 million in the next decade, demand for rental accommodation is very likely to increase.
In addition to a growing rental market, Manchester has experienced vast commercial investment. Huge corporations such as the BBC, and more recently Amazon, have chosen Manchester over London for their new northern headquarters, creating thousands of jobs in the area. As well as the big corporations, an additional 250 media and digital businesses have chosen Manchester as their base in recent years, positively impacting the city’s reputation as the place for companies to settle in the north of England.
The rise in office and business uptake in Manchester could be because it’s 40% cheaper to run a business in Manchester than it is in London, making Manchester an attractive option for business, investment and leisure.
Due to the vast commercial investment, Manchester City Council predicts population growth of 5,000 people per year by 2025, with demand for housing far outweighing supply. Luckily for the future tenants of Manchester, Beech Holdings have a number of new developments under construction in the city centre.
The first of these investment opportunities is 115 Princess Street. Located in the heart of Manchester city centre, 115 Princess Street is a buy-to-let investment opportunity with a guaranteed 7% net yield. Beech Holdings have a very limited number of apartments remaining for investment.
These apartments are pre-let, fully managed and located in an area with high rental demand, giving you a guaranteed rental yield of 7% net for the first 2 years. Beech Holdings’ apartments are located in prime areas with high tenant demand, our 97% occupancy rate in 2019 is testament to this.
The second investment opportunity from Beech Holdings is Ancoats Gardens. Situated in the increasingly popular Ancoats neighbourhood, Ancoats Gardens will be Beech Holdings’ most luxurious residential development to date. With roof gardens, a private gym, coffee roastery and shared social space, Ancoats Gardens will be one of the most in-demand residences in Manchester city centre.
In March, The Bank of England cut interest rates to the lowest level in history, reducing the base rate to 0.1% as coronavirus causes a plunge in stock markets across the world.
In addition to interest rates hitting an all-time low in the UK, the pound also dropped against other major currencies, making property investment an attractive option for overseas investors looking for a good deal in the UK buy to let market.
This currency window of opportunity won’t last forever, once Britain is no longer under lockdown the British Pound will regain its losses.
If you’re interested in investing in the buy-to-let market but don’t know where to start, get in touch and our team will guide you through the process.