Salford has been recognised as the UK’s most profitable buy-to-let city for landlords, according to research carried out by CIA landlord. The study focused its analysis on average property prices, rental yields and stamp duty savings (stamp duty calculator)(STLD), with the two neighbouring cities of Salford and Manchester coming up top.
The study found that property in Salford carries an average asking price of £173,311 and an average rent of £1,051 per month. This creates an average rental yield of 7.27% in the area, profitable investment for those looking to make the most out of their capital.
Manchester follows closely behind Salford with property prices averaging £193,681 and rental income at £1,141 per month, creating an average rental yield of just over 7%.
Whilst London has previously held the title as the UK’s buy-to-let investment haven, high property prices coupled with low rental yields have diminished the cities previous attractiveness to investors. The average property price in London currently sits at £653,965, 116% higher than prices in Salford and a respective 106% higher than Manchester property prices. Rental yields are also much lower in London, averaging at 4%, so it is of no surprise that investors are looking north for better returns.
Due to vast investment over the years in both Salford and Manchester, mass migration of big businesses, a prosperous job market and a huge student population, rental demand is higher than ever in both cities, making them a top choice for investors. When combined, both cities are home to a student population of 100,000 and a graduate retention rate of 51.5%. In addition to this, Manchester city council predict that the population is set to grow by 5,000 people per year by 2025. With an influx of new residents to the area and a growing number of people remaining after graduation, the supply of high-quality property in and around the area will continue to outweigh the supply.
According to the Greater Manchester Spatial Framework, Manchester requires an additional 11,254 homes per year by 2035 to accommodate for its growing population. Whilst there are over 7,000 homes under construction and due for completion by Q4 2020 in Manchester, this isn’t enough and doesn’t supply the demand required for even one year. Greater Manchester needs to accelerate this level of development to meet the housing needs of its ever-increasing population.
Luckily for the future and current residents of Salford and Manchester, we have a number of residential developments under construction and nearing completion. Combining high-quality contemporary finishes and cutting-edge low-carbon technologies, Beech Holdings’ developments are in huge demand from both tenants and investors.
With high rental demand and a stamp duty holiday in place until March 2021, now would be the perfect time for buy to let investors to get the most for their money when investing in the UK.
If you would like further information on any of our investment opportunities, please don’t hesitate to get in touch with our team today.