Investors flocking to Burnham’s kingdom as city overcomes London
Manchester is now the country’s most in-demand city for buy-to-let property investors, outpacing London, according to data from The Property Buying Company.
It found that the city boasts buy-to-let investment demand nearly three times higher than in Liverpool and more than three times higher than in Birmingham, despite the latter two offering more enticing rental yields of 7.7% and 6.4%.
Looking at data from The Property Buying Company’s app by 295 investors, just under a quarter (23%) were searching for property in Manchester, compared to 18% looking for properties in London.
Higher gross rental yields than London
While average rents in Manchester have risen by 3% over the past year to £1,349 per month, slightly below the UK average increase of 3.4%, the city offers higher gross rental yields of 6.6%, compared to 5.1% in London.
Following Manchester and London, Liverpool (8%) and Birmingham (7%) were the next most sought-after locations for investment.
According to additional data from The Property Buying Company, the North West remains the most sought-after region in England and Wales, with 18% stating it as their preferred region for investment.
Ticking the boxes of investor needs
Karl McArdle, co-founder of The Property Buying Company, said: “Despite not promising the highest rental yield, Manchester has established itself as one of the UK’s most attractive investment opportunities. Our data shows that demand for property in Manchester is nearly three times higher than in Liverpool and more than three times higher than in Birmingham.
“The city ticks a lot of boxes for investors, with a growing population, high rental demand, ongoing regeneration projects, several universities and major employers all helping to attract students and young professionals.
“Manchester has evolved from being an alternative to London into a destination investors actively prioritise. The gap we’re seeing in demand suggests many investors now view the city as one of the safest and most attractive places in the UK to put their money, thanks to its long-term growth prospects, continued economic investment and stable rental demand.”