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So, why should you invest in Salford property?
Known as a channel for academic and business talent, Salford lies in the heart of Greater Manchester. Salford is the beneficiary of one of the UK’s most significant urban regeneration projects. The area captures enticing scenery, splendid entertainment, and well-known quality employers, such as ITV and BBC.
With a tremendous amount of development already undertaken in Salford, the city is more liveable than ever. This aids in attracting people to live, work, and invest in Salford. Salford’s MediaCityUK successfully received £1bn in 2016. Furthermore, Salford is predicted to double in size, over the decade, thanks to the success of the project.
According to Rightmove, properties in Salford had an average price of £218,736 in 2022, with popular demand for flats. Sold prices were up 4% on the previous year, and 17% up on the 2019 peak. Therefore, the substantial growth over the last 2 years presents high hopes for investors, whilst the growth continues to prosper.
A previous high-profile project had been set, which included a £400m investment into MediaCityUK. The investment was a part of the BBC’s plan to save money by relocating some staff from London to Salford. This alone presented opportunities for investors, as more people were coming to Greater Manchester for work. Therefore, increasing rental demand and boosting rental yields.
1. Future Visions: Salford Quays 2030
By 2020, Salford Quays had become one of Europe’s most successful waterside regeneration projects. Conversely, by 2030, Salford Quays is set to be transformed through working with local communities and stakeholders. The aim is to make a space suitable for everyone. Through the latest regeneration project, Salford Quays will be considered a peaceful place to live, whilst providing everything you need within walking distance. The aim is to create an affordable place for all and deliver further opportunities for jobs in technology, media and more. In return, this will generate further interest in relocating to Salford and ultimately, increase rental and housing demand.
The 5 principles set out to support the Salford Quays 2030 vision are:
Firstly, Salford Quays is one of the world’s busiest docks and is set to be one of the most successful regeneration projects. Additionally, urban regeneration is important for economic growth. Regeneration increases employment and attracts residents and investors, whilst improving the quality of life for people who live close by.
2. 20% Population Growth & High Tenant Demand
If you need another reason as to why you should invest in Salford property, look no further. The Northwest is currently one of the best performing rental markets in the UK. As rental demand continues rising, it is now the greatest time to invest. According to Zoopla, rental increases have hit a 13-year high, most likely due to the imbalance of supply and demand.
According to Salford Gov 2022, there has been a signification growth in Salford’s population over the last 10 years. This is forecast to continue, with an expected 20% growth by 2035. A place that is rife with culture and vibrancy, Salford offers an attractive mix of city buzz and calmness surrounding the green spaces and suburban serenity. The covid-19 pandemic saw residents re-evaluating their habitual spaces, and within the last 2 years, Salford saw a population rise of 6%. Additionally, the cost of living continues to rise in London, with extortionate house prices, and therefore it is no surprise that people are moving north. The increasing population is one reason that Manchester is set to become the next London.
As Salford is a stone’s throw away from Manchester City Centre, the pair are set to thrive in population over the coming years. Let’s not forget the student population, too. The University of Salford had over 25,000 students and 2,300 staff in 2020, furthermore, according to the university application domain, UCAS, there has been a 7% increase in students from 2020. The ever-increasing student population means rental yields are only going to rise. As the population grows, and urbanisation continues, rental demand will continue to boom over the coming years, making this a great time for property investment.
3. Rising Property Prices in Salford City
Did you know that house prices in Manchester have soared by 330% in the last 20 years? This is the highest percentage than anywhere else in the UK, proving that this fast-developing city is extremely popular. Over the next 3 years, the city’s population is set to grow by 125,000, which is deemed a desirable number to those who are looking to invest in property around the Manchester and Salford area. A growing population is a great indication that demand for accommodation in the area will only increase.
It was revealed that Salford, in Greater Manchester is one of the UK’s most desirable hotspots. According to Rightmove, the average property price in Salford is £218,736, which was up an astounding amount by 11.3% in 12 months. MediaCityUK was branded as the ‘first purpose-built business hub for the creative and digital industries.’ This makes the location desirable to those working in specific industries and profitable to investors.
Properties that sit comfortably within the M50 postcode are worth approximately £20,000 more than they were two years ago. This was a much larger increase in other competing cities such as Leeds, Sheffield, and Liverpool.
Despite the latest figure, many people are choosing to rent rather than purchase properties. Furthermore, the latest buy-to-let index emphasised the Northwest as the region offering the highest rental yields of 7.2%. An overall English average was 5%. Developers are wasting no time on the catapulted interest in Salford. More than 150 new homes in Salford are underway, thanks to Salix Homes and partner developer Step Places. The eco-friendly development is on track for completion in summer 2023.
4. Connectivity and Transport Links
If you choose to invest in Salford, know that the excellent transport links and access to Manchester centre prove beneficial to tenants that wish to live on the outskirts as opposed to the city centre.
Earlier this year, Salford welcomed a £3.1m investment which involved essential work in creating smoother and more reliable journeys for passengers in the Northwest. Salford is accessible through Metrolink tram services, buses, rail, coach and more. In an ‘ambitious’ plan, a new Metrolink line may be created in Salford as a focal point for growth. The new Metrolink connection will run between Media City, Salford Crescent, and Manchester city centre. The update will be developed as part of the city centre transport strategy for 2040.
Additionally, the Salford Crescent station is set to be transformed with enhanced pedestrian and cycle infrastructure, bus, and rail connectivity. Salford continues to improve its connectivity year on year, all whilst considering the environmental impact. In late 2021, the ‘Bee Network Cycle Hire Scheme’ ran full speed ahead, providing e-bikes and bikes to the public. The purpose of the scheme was to provide a revitalised public transport system and become carbon neutral by 2038.
Mike Brown, Director of Strategic Partnerships at the University of Salford, said: “The University is working with partners across Greater Manchester on the Green Recovery and tackling climate change, the decarbonisation of mobility will help GM achieve its net-zero target.”
Whether you prefer suburban or modern city living, Manchester and Salford provide an extensive range of accommodation options such as apartments, housing, and more. If you choose to invest in Salford, know that it will be worth your while. Salford and Manchester offer a generous rate of capital growth and remarkable rental yields. Therefore, we believe that this is the perfect time for investment in the Northwest.
Our key points don’t stop there, read our previous article on 5 Reasons to Invest in Manchester.
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