5 Reasons to Invest in Manchester

Continuous Regeneration 

Manchester is one of the fastest-growing cities in the UK. Regeneration has been a huge part of Manchester’s recent success. A prime example of this is the MediaCityUK. Since it was completed, it has provided over 10,000 jobs and has increased the number of digital and creative businesses by 70%, boosting the economy.

Billions of pounds have been put into new infrastructure, commercial, leisure and residential projects. The projects have transformed Manchester’s skyline and revitalised towns, creating a new and improved urban living environment and making the city an attractive destination for property investors. Thanks to regeneration, many up-and-coming areas in Manchester are set to experience rapid growth in the coming years.

Future regeneration plans are in place to improve the city further, including a new St Johns neighbourhood, the development of Ancoats Green, Manchester’s Central Retail Park, and Old Trafford stadium. Now is the perfect time to invest in Manchester to gain capital appreciation once the projects are complete.

Booming Business

Due to great connections to the rest of the UK, Manchester is a popular location for people wanting to explore new opportunities within business. An impressive 41,222 new companies were registered in Greater Manchester last year, resulting in an increase of 6.4% compared to 2022. The influx of firms moving here creates an attractive location for young professionals hoping to make their mark on the city and sectors such as digital, finance, healthcare and manufacturing are worth over £4 billion annually. The high level of business in the city creates a high level of rental demand. 

Manchester also houses Trafford Park, the first purpose-built industrial park in the world with over 9 million square metres of business space. Holding over 1,000 businesses and around 35,000 jobs, in Europe, it remains one of the largest and most successful business parks. Furthermore, employment rates in Manchester rose from 66.9% to 73.6% in the year to September 2023. 

Manchester is predicted to see an economic annual average growth of 2.5% between 2024 and 2026. This is more than the national growth rate of 2.1%. Therefore, according to EY’s Economic Forecast, Manchester is set to see the third-fastest economic growth of all UK towns and cities between 2024 and 2026. 

Thriving Rental Market

The rental market across Manchester remains strong as the demand for housing consistently outweighs the supply. A recent report from Urban Bubble indicates that only 427 apartments were available for rent in Manchester. This is the lowest number on record yet. Rental demand will continue growing because of many factors, including the impact of new transport links and regeneration projects. In future, this could positively influence property values and levels of rental demand. In 2022, Manchester was the UK’s best-performing city for rental growth. The city centre recorded a 22% increase in rented properties in December 2022.

Manchester is seeing larger yields of up to 9.4% as rental prices overtake house prices, which is way above the average of 4.66% in the North West of the UK. The average monthly rent for a one-bedroom flat in Manchester’s city centre was £1,172 in December 2022. This has now likely increased in line with the city’s growth record. Increasing rents means the monthly income for investors increases. 

Demand from students is a large part of the overall demand rate. Manchester is the home to five of the UK’s leading universities enrolling around 120,000 students annually. Therefore, investors who purchase a property in Manchester can expect high demand from students and young professionals.