London and the UK’s “second city” of Manchester are both incredibly attractive locations for investment, tourism and culture, both share a great social scene and are home to world-class universities and fantastic job opportunities. We often get asked by investors why they should choose Manchester over London for property investment, keep reading to find out.
Manchester city centre has undergone a vast transformation in recent years and low residential stock levels coupled with high rental demand has made Manchester an incredibly desirable place for property investment. House prices in Manchester have weathered well during Brexit and have continued to rise despite uncertainty and rental yields are strong due to high tenant demand.
One key element that Manchester has over London is that when London is compared to Manchester, it’s really being compared to the huge potential of the Northern Powerhouse and the exponential growth in this region.
Manchester vs London; what’s the price difference?
We don’t need to tell you that house prices in London are through the roof. Whilst London’s house prices have dropped 0.5% in the last year, they’re still 117% higher than the national average of £220,000. On the other hand, Manchester’s housing market enjoyed stable growth at 4.5% in 2019, according to the latest UK Cities House Price Index from Hometrack. The average cost of a house or apartment in Manchester is £173,400, 176% lower than the average house price of £479,000 in London.
Property prices in Manchester have continued to rise and this is down to vast growth in commercial and residential investments. We recently wrote about how Amazon picked Manchester over London for its new northern headquarters, following in the footsteps of the BBC, which in the last ten years has created or relocated thousands of jobs into Salford, Manchester.
London’s property growth has become somewhat stagnant over the last couple of years. Flat owners achieve an average rental yield of 3.6% for a population just short of 9 million people. In Manchester, the yearly rental yield is high at 7.89%, and with an ever-increasing population, Manchester stands for a very lucrative opportunity for property investors.
Home to Europe’s largest student population
Another major advantage of choosing Manchester over London for property investment is Manchester’s student population. Manchester is home to 5 universities and 100,000 students; it was recently voted number one for graduate employment by The Times and Sunday Times Good University Guide.
In addition to this, Manchester has the second-highest graduate retention rate in the UK, after London. According to research from the Manchester Brain Drain, 51% of students from Manchester’s universities remain in the city after graduation. In addition to this, 57% of students from Manchester who left the city for their studies, returned to Manchester after graduation. These statistics showcase how healthy Manchester’s rental market is, again making it an easy choice for investors.
Beech Holdings offer a fully managed investment opportunity, from development through to lettings and property management. Our sister company, Manchester Apartments let out the apartments developed by Beech Holdings and 97% of our apartments were let in 2019.
Available investment opportunities in Manchester City Centre
Beech Holdings have a number of buy to let investments available in Manchester city centre. One of these investment opportunities is located in the much sought-after Ancoats area. Ancoats Gardens is a luxury residential development with two roof gardens, 155 high-spec apartments, an exclusive on-site gym, coffee roastery and shared social space for tenants.
Ancoats was recently regarded by The Times as one of the top 20 coolest places to live in the UK, increasing rental demand in the area, making it a lucrative choice for potential investors.
If you’re interested in investing in our Ancoats Gardens development or want to find out about any of our other developments, get in touch today.