How To Start Investing In Real Estate In Manchester
It has been revealed over the past year that more people are leaving London and heading north to other cities like Manchester and Birmingham, with the key explanation being house prices and general living affordability.
The demand for suitable accommodation inevitably increased with an influx of new residents deciding to live and work in Manchester. At one of Britain’s highest average yields of 5.4 percent, it’s easy to see why investors flocked to Manchester City, and if you thought Brexit would slow things down, you’re wrong. Several news outlets have continued to pin Manchester as one of the few cities that will survive the Brexit storm and emerge stronger than ever, with house prices rising by 21.6 percent compared to London’s predicted slump.
Apart from Brexit there are other factors that have helped to boost the real estate market in Manchester, such as jobs. Manchester, as one of Britain’s biggest tech capitals, sees no signs of slowing down when it comes to job creation.
Is Investing in Manchester a good idea?
Investments in Manchester City do not show any signs of slowing down, and citizens (and investors) should look forward to increased growth from the Northern Powerhouse initiative, which has seen £1,6bn invested in the past 24 months in Manchester to further boost its economy, housing market, and work opportunities.
In addition, the transport network will see improvements with the HS2 line plans. This new high-speed rail network has contributed to economic growth and development in areas like Birmingham, Leeds and Manchester, resulting in the building of large numbers of new offices, apartments, and hotels.
In 2018, 14,480 residential units were under construction in Manchester, which is double the amount compared to 2016 (Deloitte Manchester crane survey 2019) and another 8,517 units are under construction as well. There has also been additional investment in the commercial property market, with 85 percent of the office space under construction being a new build grade-A space to attract new businesses moving to Manchester.
As investments continue to flood into the area, it is only natural that all corners of Manchester’s property market will benefit, including student, commercial and residential properties, increasing resident and landlord housing demand and creating new opportunities for investments, both for first-time and experienced investors.
Mortgage for property purchases
If you need help funding the purchase of your UK home, non-UK nationals can get an investment loan from a UK bank or mortgage broker, or from an foreign bank such as HSBC that will offer services in English. Most mortgage lenders offer different fixed-rate and variable-rate mortgages and will require you to raise a deposit between 5-40% (usually higher for non-residents). This may also be necessary to obtain a home loan against existing assets overseas, however tax consequences may arise. Lender arrangement fees also vary by lender, but a mortgage reservation fee and arrangement or completion fee may apply.
Manchester’s demand for Buy-to-Let properties is high from investors due to the city’s strong rental market, with residents and students searching for high-quality accommodation that fits a variety of needs, ranging from lifestyle to transport.
A recent HSBC report revealed that Manchester has been voted the second best place in the UK for buy-to-let property investment, and with a combination of long-term capital growth and some of the country’s highest rental yields, it’s no wonder so many investors turn their attention to Manchester property investment.
Buy-to-let properties are becoming the investment preferred for many as they try to find an asset where their capital can work hard for them, providing high returns and offering stable investment. In recent years, property prices have continued to rise in many areas of the United Kingdom and the same can be said for rental prices which make a Manchester buy-to-let investment even more attractive.
Should you invest in real estate in Manchester, then?
Manchester property has delivered some of the highest growth rates in the UK (read our Londow real estate market review if you interesting to learn more) and all predictions suggest that the city’s growth curve is just starting. Figures state that until 2025 Manchester city center will remain undersupplied with 750 units per year of residential land. More people are expected to live and work in Manchester in the next 10 years than ever before.
Manchester investment property will continue to be one of the most in-demand assets of the global investor community. Don’t miss your chance to take your place in this thriving real estate market.