Recent reports indicate positive upward movement in the UK rental market, with property in the North West proving particularly lucrative for landlords; a trend which Reeds Rains City Living can confirm as interest in their Manchester buy-to-let properties continues to soar.
One of the largest cities in the UK, Manchester is increasingly becoming the destination of choice for tenants looking to avoid the high premiums that are an unavoidable aspect of renting in the capital, in addition to the attractiveness of a location with excellent transport links, both into and out of the city.
Reeds Rains, residential Branch Manager Greg Davies, comments, “The buy-to-let market in Manchester continues to be a popular choice for investors as good yields are coupled with strong demand from tenants especially within the city centre and Salford Quays”.
The latest information reported in the LSL Property Services Buy-to-Let Index, highlights how London buyers need to supply larger cash deposits than anywhere else in the country. Couple this with a 1.7% increase in North West rents and there is a strong indication that property in cities like Manchester is a much savvier investment for landlords, particularly over the long-term.
The Manchester property market is unique to most major cities, as there has been little-to-no new-build property since the price crash. Rental prices have continued to rise over the past five years at a rate that the properties haven’t, but the market is starting to turn and property prices are rising, making Manchester a great area for investment.
“As more would-be-buyers decide to let rather than buy the rental prices continue to rise therefore demand for suitable buy-to-let properties grows as investors are keen to benefit from these current market conditions” Greg Davies further comments.
The Private Rental Sector in general is painting a positive picture of the UK property market. Indeed, research from Paragon Mortgages’ PRS Trends Q2 Report highlights how the second quarter of 2012 has shown a marked increase in the average size of property portfolios, in addition to an increase in average yields (rising from 6.2% in Q1 to 6.5% in Q2) and a confidence from landlords that tenant demand is continuing to grow.
A city ripe for investment, Manchester is currently undergoing a period of intense regeneration, with plans submitted for a new £100million town hall complex and a £113million regeneration scheme throughout the Greater Manchester area. The new Media City site in Salford Quays is an additional boon to the city, with a £70million complex of designer shops, bars, restaurants and cinemas, in addition to being home to the brand new BBC and ITV studios and the famous Lowry Theatre.
Property specialist Reeds Rains City Living currently has a number of buy-to-let opportunities available in Manchester, in prime locations and generating higher-than-average yields...
48 Princess Street, Manchester M1 6HR - £97,500: A spacious one double bedroom apartment located within this period conversion located in the heart of the city centre on Princess Street. Original features include high ceilings, wooden ceiling beams and feature columns. Situated close to the universities, the village, train stations and China town. No chain. Potential rent £650 pcm, service charge approx £1521 pa - therefore net yield (after service charge deductions) is approx 6.4% (based on an asking price purchase).
Treelands Walk, Salford, M5 3FU - £95,000: Currently tenanted until October 2012 at £600pcm, this is a perfect investment opportunity; a superb two double bedroom, mid-terrace house, overlooking Monmouth Park with car parking spaces to the rear of the property. Approximately half a mile from Exchange Quay Metrolink station provides easy and quick access to Manchester City Centre as well as being within one mile of Salford Quays. Gross yield approx 7.6% (based on an asking price purchase).
For further information on any of the investment opportunities mentioned in this article, or to discuss expanding your property portfolio, please contact the Reeds Rains City Living Manchester team on 0161 236 9088 or by emailing firstname.lastname@example.org.