Carly Phillips, Aldermore Relationship Manager for the North-West:
Our new Buy to Let City Tracker1 looks at 25 cities across the UK to understand the best places for landlords to invest in.
With Manchester being the biggest city in my area, I expected it to come high on the list, so I was pleased to see it come in as the second best place for landlords in the UK.
Development across both the residential and commercial sector has brought a real buzz back to the city which has attracted landlords and tenants alike. While the rental yields are strong this looks like it is set to continue to be a buoyant area of the UK. Additionally, property prices continue to rise year-on-year making it an attractive long-term investment too.
Richard Ignatowicz, the Director of one of our big brokers in the North West, Mortgage Savers, agrees that Manchester is currently regarded as one of the top buy to let hotspots in the UK. It was primarily put on the investment radar due to the BBC moving to Media City in Salford Quays. This attracted a flood of southern and international investors and resulted in Article 4 being imposed in November 20182.
Richard also commented that, “Having recognised the excellent returns, investors are now seeing other parts of Manchester experiencing a ripple effect, such as Ashton and Oldham, which are served by the Metro and within easy commuting distance to the City centre. HMO conversions are especially popular and currently providing double digit returns.”
1 Aldermore’s Buy-to-Let City Tracker was designed by Opinium and comprises of five core indicators: average rent per room per month, short-term yield for a new buy-to-let purchase, average property price rise over the last 10 years, proportion of vacant properties in the city and size of the private rental market. The index uses a series of secondary data sources including the ONS, Census and other official housing statistics. To read more visit https://www.aldermore.co.uk/about-us/newsroom/2019/12/oxford-tops-the-list-for-buy-to-let-investment-as-hidden-gems-revealed-across-the-uk/
2 A new rule introduced in November 2018 requiring small family dwellings that were to be turned into HMOs for students or professional to rent together, would require the council’s planning permission. This affects the central Salford boroughs of Broughton, Claremont, Irwell Riverside, Kersal, Ordsall, Langworthy, Weaste and Seedley and the wards of Barton and Eccles.
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