Manchester attracting increased interest from landlords
Manchester is fast becoming one of the most popular areas in the UK for buy-to-let investors, according to recent figures. Online letting agent Upad has announced that there has been a huge increase in the number of landlords listing properties in the northern city, reports OPP Today.
According to Upad, December 2016 and January 2017 saw a 100 per cent rise in the number of landlords with properties to rent in the city. This suggests that more people are investing in properties in Manchester rather than popular areas like London.
The Northern Powerhouse now has an overall rental yield of around 6.2 per cent, according to online mortgage lender LendInvest's latest Buy-to-Let Index. On top of this, the Royal Institute of Chartered Surveyors (RICS) has predicted that rents in Manchester will see a 25 per cent increase throughout the next year.
Despite the increase in rent and the growing popularity in Manchester, housing is still fairly affordable and Upad's figures suggest that landlords are making the most of property prices that are lower than in the south.
James Davis, founder or Upad and portfolio landlord, said: “Manchester’s buoyant rental market is clearly causing investor heads to turn away from the overheated market in London and the south towards a much more appealing prospect in the north. Manchester is time and time again proving to be highly desirable as a location to both live, work and study, which combined with a comparatively affordable housing stock and increasing rents, yields are offering higher returns.
“Also as house prices are increasing at a faster rate in Manchester compared with London’s current cooling market, investors are more likely to benefit from any associated capital gains too.”
Other northern cities are also expected to see an increase in landlord investment over the coming year, with Liverpool and Leeds attracting more interest. With the fast increase in costs in most southern cities, these areas are providing better return on investment for landlords.