The Best Manchester Property Investment Opportunities

Greater Manchester has become a cornerstone of UK property market growth, offering unparalleled opportunities for seasoned and first-time investors. The region's economic vitality, extensive regeneration projects, and booming rental sector have solidified its reputation as a hub for property investment. 

Whether targeting high-demand areas in the city centre or exploring the appeal of commuter towns, there are many reasons to invest in Manchester.

This blog will guide you through the best areas to invest in Manchester, the economic growth and impact, and the advantages and disadvantages of becoming an investor in Manchester. 

What We'll Cover

• Overview of Manchester's Property Market
• Manchester Investment Opportunities: Key Areas
• Economic Growth and Impact
• Rental Market Demand
• Advantages and Challenges of Investing in Manchester
• Insights About Investing in Manchester 

Overview of Manchester's Property Market for Investors 

Manchester’s property market is growing. Over the past year, the housing market has increased by 2%, higher than any other region in the country. 

Likewise, the average house price in Manchester has skyrocketed in the last decade, rising by 250% since 2002, and currently standing at £276,594. According to the JLL Residential Forecast, Manchester’s housing market will continue to grow, experiencing a 25.8% growth in house prices over the next five years.

Buy-to-let landlords will also be glad to know that the average rental income in Manchester is £1,266, competitive with other cities in the UK. 

Here is an overview of various property prices in Manchester:

• A one-bedroom flat costs around £145,705 
• A two-bedroom house cost approximately £190,866
• A suburban family home with four bedrooms is sold for an average of £441,464 

There are many reasons why the Manchester property market is booming and offers a promising future for investors:

• Culture: The city's appeal lies in its vibrant cultural scene. Manchester boasts diverse environments, from breathtaking countryside to bustling nightlife. This makes d robust Amenities: Manchester has many world-class universities, excellent eateries, and cultural hotspots. Residents here can find everything they need. 
• Transport: The city’s transport connections via Manchester Airport and rail links make it easy for residents to get where they need to be. 
• House Shortage: While there is a high demand for properties in Manchester, the supply is minimal, making this an appealing investment place. 
• Rental Opportunity: The shortage of houses has highlighted an opportunity for rental properties in Manchester City Centre. Investors can expect high rental demand and have peace of mind knowing that the property they purchase will generate returns.

Manchester Investment Opportunities: Key Areas

Manchester offers a range of neighbourhoods and commuter towns that cater to different investment strategies. 

Here are the areas worth exploring in greater detail:

Altrincham: Combining Tradition with Modern Appeal

Altrincham is one of Manchester's best places to live, making it a top choice for property investment. Known for its excellent schools, vibrant town centre, and award-winning market, it appeals to families and professionals alike.

The average home in Altrincham is sold for £531,000, a 5.6% increase over the last 12 months. In the previous 12 months, the average property price in Altrincham increased by £23,565, representing a 5.28% rise.

These figures suggest that Altrincham's average house price growth over the past year is between 5.28% and 5.6%. 

The average rent for properties in Altrincham is also increasing. The average rent for houses and flats in Altrincham is £1,261 per month, marking a 15% increase compared to the previous year. Regarding rental yields, regional insights indicate that the North West of England, which includes Altrincham, has an average rental yield of approximately 4.83%

Key Features of Altrincham for Property Investment:

• Proximity to Transport Links and Amenities: Ensures strong rental demand and attracts many tenants.
• Steady House Price Growth: Offers excellent potential for long-term capital appreciation.
• Diverse Property Options: Includes period homes and modern developments, appealing to varied investor preferences.
• Broad Tenant Audience: Caters to professionals, families, and commuters, enhancing rental opportunities.
• Desirable Location: Altrincham is consistently ranked as a top living place, increasing its investment appeal.

Stockport: A Regeneration Hotspot

Stockport, a vibrant town in Greater Manchester, offers a mix of historic charm and modern convenience, making it an attractive location for homeowners and investors alike. Known for its excellent transport links and thriving community, Stockport is a sought-after area in the UK housing market.

As of September 2024, the average house price in Stockport is £298,000, reflecting a 2.4% increase from the previous year. However, Rightmove reports an overall average house price of £300,335 over the last year, marking a 4% increase compared with the year earlier. In other words, investors in Stockport can expect a house price growth forecast of between 2.4 and 4%.

Stockport's average monthly private rent is £1,015, marking a 14.5% increase from £886 in October 2023. Rental yields in Stockport have also shown positive trends. Recent analyses indicate that Stockport has experienced a yield increase of approximately 0.34% since the start of the year, reflecting a growing return on investment for landlords. 

Key Features of Stockport for Property Investment:

• Strong Rental Demand: The significant rise in average rents indicates a robust demand for rental properties.
• Increasing Rental Yields: The upward trend in rental yields suggests improving returns for property investors.
• Strategic Location: Proximity to Manchester city centre enhances its appeal to commuters and businesses.
• Ongoing Regeneration Projects: Infrastructure and amenities investment boost property values and attractiveness.
• Diverse Property Market: A range of property types caters to various investment strategies and tenant demographics.

Bury: Affordable and Accessible

Bury, a historic market town in Greater Manchester, is renowned for its rich industrial heritage and vibrant cultural scene. With excellent transport links to Manchester city centre and various local amenities, Bury has become an appealing location for homeowners and investors.

As of September 2024, the average house price in Bury was £249,000, marking a 4.3% increase from September 2023. This growth rate is slightly below the North West region's average increase of 4.8% during the same period.

In terms of property types, detached houses in Bury had an average price of £407,000, semi-detached properties averaged £272,000, terraced houses were at £197,000, and flats or maisonettes averaged £136,000 as of September 2024.

The average monthly private rent in Bury is £892, reflecting a 12.6% increase from £792 in October 2023. Property prices and rental rates influence rental yields in Bury. With an average house price of £249,000 in September 2024 and an average annual rent of approximately £10,704 (£892 x 12), the gross rental yield is around 4.3%.

Key Features of Bury for Property Investment:

• Affordable Property Prices: With an average house price of £249,000, Bury offers comparatively affordable investment opportunities within Greater Manchester.
• Proximity to Manchester: Excellent transport links make Bury convenient for commuters working in the Manchester city centre.
• Thriving Local Economy: Bury benefits from a growing local economy with a mix of retail, cultural, and industrial sectors driving employment and investment.
• Ongoing Regeneration Projects: Developments in infrastructure and amenities, such as the refurbishment of Bury Market and the town centre, are increasing the area’s appeal to residents and investors alike.
• Attractive Rental Yields: With a gross yield of approximately 4.3%, Bury offers steady returns in line with regional averages.

Bolton: Gateway to Growth

Bolton is renowned for its rich industrial heritage and vibrant cultural scene. With excellent transport links to Manchester city centre and the surrounding regions, it has become an attractive location for investment.

As of September 2024, the average house price in Bolton was £200,000, marking a 5.0% increase from September 2023. This growth slightly outpaced the North West region's average increase of 4.8% during the same period. These figures highlight Bolton's steady growth in the housing market, making it a noteworthy consideration for potential buyers and investors looking for opportunities in the Greater Manchester area.

As of October 2024, Bolton's average monthly private rent is £777, reflecting a 10.0% increase from £706 in October 2023. With an average house price of £200,000 in September 2024 and an annual rental income of approximately £9,324 (£777 x 12), the gross rental yield in Bolton is around 4.7%.

Key Investment Attractions in Bolton:

• Strategic Location: Proximity to Manchester and excellent transport links make Bolton an attractive option for commuters and businesses.
• Economic Growth: Bolton's diverse economy, encompassing sectors like manufacturing, retail, and education, contributes to a stable employment landscape.
• Educational Institutions: Home to the University of Bolton, the town attracts a steady influx of students, creating opportunities for student accommodation investments.
• Cultural and Recreational Appeal: Bolton offers attractions like the Bolton Museum and Octagon Theatre, as well as beautiful countryside like Rivington Pike. 
• Growing Population: Bolton’s steadily increasing population drives demand for housing, making it a sustainable choice for long-term property investments.

Economic Growth and Impact on Manchester for Investors 

Manchester's economic success is a key driver of its thriving property market. The city has become a hub for innovation, attracting businesses and talent from across the globe.

Booming Business and Industry

Manchester’s thriving industries, including technology, finance, and creative media, have fueled job growth and boosted demand for housing. As businesses continue establishing their presence in the city, the growing workforce creates an increased need for high-quality housing, making Manchester a prime destination for property investment. This economic expansion drives rental yields and enhances long-term capital growth, solidifying its reputation as a top UK property hotspot.

Infrastructure and Connectivity

Investments in infrastructure, such as improvements at Manchester Airport and improved customer travel information on the Bee Network, have made Manchester more accessible than ever. This increased connectivity benefits professionals working in the city centre and boosts property values in well-connected areas.

Population Growth

The city's growing population—particularly among young professionals—has further fueled demand for rental and investment properties. With people drawn to the opportunities in Manchester, the property market benefits from a consistent influx of new residents.

Rental Market Demand in Manchester for Buy-to-Let Landlords

The rental market in Manchester has been a significant driver of its property investment appeal. The city offers a strong and diverse tenant base, from students to professionals.

Young Professionals and Renters

Manchester's vibrant economy attracts many young professionals who prefer conveniently renting near the city centre. This has led to strong rental demand, especially for modern apartments near transport links, offices, and entertainment hubs. For investors, this means consistent rental income and low vacancy rates.

Student Demand from Universities

Manchester is home to world-class educational institutions like the University of Manchester and Manchester Metropolitan University, which draw thousands of students—including international students—annually. This ensures a steady stream of renters, particularly in areas close to university campuses or with good public transport connections. For investors, student housing offers a reliable and lucrative opportunity.

Advantages and Challenges of Investing in Manchester

These are the benefits and challenges investors should consider when investing in Manchester. 

Advantages

• High Demand for Rentals: The combination of students, young professionals, and families ensures a steady pool of tenants, making Manchester one of the most reliable markets for rental income.
• Capital Growth Potential: Continuous regeneration and infrastructure development in the local economy contribute to rising property values and offer substantial returns on investment.
• Variety of Properties: Investors can choose from modern city apartments to spacious suburban homes catering to various tenants and budgets.

Challenges

• Rising Prices: As the market grows, securing properties in desirable areas can become increasingly competitive.
• Regulatory Compliance: Investors must stay updated on property regulations to avoid potential pitfalls.
• Tenant Expectations: With a growing demand for high-quality housing, investors must ensure properties meet modern standards to remain competitive.

Insights About Investing in Manchester

Property experts remain optimistic about the future of Manchester's property market, highlighting its resilience and growth compared to other major cities. Manchester's strong economic fundamentals and regeneration projects are setting it apart from major cities across the UK. 

Here are the key expert insights and predictions for property investment in Manchester:

• Sustained House Price Growth: Greater Manchester's property prices have surged by 18.38% in 2023 alone, driven by high demand and limited supply.
• Consistent Rental Demand: The rental market in Manchester remains robust. This growth is particularly pronounced in flats and maisonettes, averaging £1,006 per month, and detached properties at £1,671 per month.
• Attractive Buy-to-Let Opportunities: Manchester offers lucrative opportunities for buy-to-let investors, with average rental yields ranging between 5% and 7%, particularly in the city centre. The city's diverse investment opportunities and high demand for rental properties contribute to these attractive yields.
• Comparative Advantage: Manchester's affordability and growth potential make it a standout option compared to other major cities. The city's vibrant living environment and long-term financial rewards continue to attract investors seeking substantial returns.

As Manchester's property market continues to grow, it solidifies its reputation as one of the UK's top destinations for property investment. The time to act is now for those looking to capitalize on these trends.

Sell Your Manchester Property with UPSTIX

With its thriving economy, growing rental market, and ongoing regeneration projects, Manchester stands out as a prime location for property investment. Whether targeting high yields from investment properties or looking for long-term growth in suburban areas, the city offers options to suit every strategy.

With UPSTIX, we can help you sell your investment property in Manchester. UPSTIX simplifies every stage of the house-selling process, making it effortless and quick. 

Contact us today to take the first step toward your next excellent investment!