London is losing its title as the home of overseas investment. Another city is supplanting its value on the UK property market that’s driven by growth, business initiatives and easy access to other metropolitan areas. This is Manchester – increasingly known as the country’s second capital.
If you are looking to purchase UK property you have much to gain by taking it out now before interest rates rise. Manchester city’s rental yields keep on climbing so there couldn’t be a better time to invest. Below, we explain how Manchester is performing so well, and the reasons behind its renaissance…
A glance at the numbers
2017 was a landmark year for the region. According to Property Reporter, Manchester delivered the biggest rental returns in the UK (5.55%). It was also designated the top spot for rental growth (5.76%) and had a “reasonable amount” of capital gains (pegged at 8.36%).
Overall it beat London, Leicester, Cardiff, Newcastle, Birmingham and Luton – all of which were contenders for the prime position. This news is in line with past trends; several years of sustained growth have been recorded, mainly around the city centre, Altrincham, Didsbury and Chorlton. Average residential values have now reached £150,000, providing an average rental yield of £1,044 for landlords.
Having witnessed £1.4bn residential property investment over 2017, Manchester is inarguably on the rise for overseas investors. But why? What is happening to spur such monumental change?
The perfect storm of incentives
There isn’t a single factor for Manchester’s newfound rental status; it is pieced together from developments in business, transport, education and urban culture. Some of them include:
- New accommodation, which is being built in proximity to tram stations, train links and bus terminals. The MEN states that this will likely appeal to families and older renters, in addition to the typical young professional crowd.
- Ongoing schemes within the Northern Powerhouse. Manchester has benefitted from a 8% hike in productivity since the plan was introduced. As more elements of the Powerhouse are realised, that number will increase – creating jobs for more professionals.
- Startup businesses, freelancers and flexible workers have a lot to love about the city’s networking environment. These organisations are largely in the UK’s service economy which, since it avoids export costs, is somewhat Brexit-proof.
- The £55.7bn HS2 rail project – aiming to halve commuting time between Manchester and London – will be completed by 2033.
- Regional culture has always been strong. Yet a new, stunning arts venue (The Factory) is due to open in 2020. Designed by some of the best architects in the world, The Factory is a flagship statement for Manchester’s relevance on the arts scene, which will draw more creatives to central residential locations.
The advantage of securing properties now, whilst there’s so much potential being explored in this community, cannot be denied. British expats and overseas investors will still need help, however, as they apply for mortgages for small or large-scale residential portfolios.
Liquid Expat Mortgages are perfectly placed to help you get a foothold on Manchester’s property market, giving expats and foreign nationals access to competitive mortgage deals as well as exclusive developments. Contact your specialist broker partners today to get started.