Over the past decade, Manchester has established itself as one of the UK’s most important property investment regions. Average property values have risen to about £250,000, according to the Office for National Statistics. That’s an impressive figure considering the majority of properties are apartments and terraced houses.
There were about 60,000 of each type in the city in the 2021 census, and the number of apartments has risen significantly since then.
Rent prices in Manchester and Salford have recently settled after seeing a huge 55% rise over the past five years. Similarly, the price of newly built flats grew by 26% over the past half-decade, although the growth has slowed in recent months.
The strong and steady growth has not happened by accident, of course. Manchester continues to be an attractive place for people to live, students to study, businesses to set up, and visitors to shop, dine, and enjoy entertainment.
While it’s fair to say that that has been true for the past thirty years, there’s a new climate of optimism and a host of major developments that are bringing people – and money – to the capital of the North.
While Manchester as a whole has its own identity and economic importance, like any city, it is divided into a number of unique areas that have their own characteristics and attract their own blends of residents and businesses. Below, we’ll highlight the ones that have seen the most investment activity over the past decade or so.
Ancoats
Location-wise, Ancoats always had a lot going for it. Just across the road from the trendy Northern Quarter, and the original home to Sankeys Soap nightclub, all it lacked was investment.
That eventually came in the shape of a £1.5 billion transformation, with the Victorian mills now converted into homes, offices, bars, restaurants and retail spaces.
It’s a haven for young professionals, and the relative scarcity of property has ensured healthy growth in the value of investments there. Better still, there’s more to come, with extra green spaces and pedestrianised routes adding to its appeal.
Salford Quays & MediaCityUK
If Ancoats repurposed disused buildings, Salford Quays developed the old abandoned docklands from nothing into a place of creativity, global media, hospitality, and living, with a hint of glamour.
MediaCityUK is home to several key branches of the BBC and ITV, as well as a Salford University campus and a cluster of tech firms and incubators. Waterfront apartments with canal or dock views are particularly fast-letting and tend to hold their value well, making this a solid choice for investors.
Northern Quarter
Probably Manchester’s coolest area since at least the 1980s, the Northern Quarter manages to constantly reinvent itself. Its move into residential apartments is a relatively recent addition, however, probably because the bars and clubs aren’t everyone’s cup of tea.
But for those who love being at the heart of things, NQ is a minute from Piccadilly and a short walk to Deansgate. Property prices are surprisingly reasonable considering its central location and local kudos, and growth in the residential sector across the city spells decent returns and rental income for investors whether you choose central locations or properties slightly further afield.
Oxford Road Corridor (Circle Square)
Oxford Road Corridor is one of the UK’s most important knowledge and innovation clusters. Here you’ll find the University of Manchester, Manchester Metropolitan University, the Graphene Institute, Manchester Science Park and a concentration of tech firms.
Vita Living Circle Square has cemented its status as a flagship investment location, delivering strong rental yields and low void periods, all thanks to its high demand. More than 60,000 students and staff study or work along the corridor, and many of them decide to stay. That creates a permanent pipeline of professional tenants.
Cheetham Hill
Although it might not appear on many lists of hot development opportunities, Cheetham Hill has been a solid performer for property investors for decades. It’s a large district mainly comprising traditional terraced residential streets, but it remains desirable thanks to its generational family links, great transport routes and proximity to the city centre.
There’s an abundance of opportunities for property renovation for sale or rental, but also plenty of properties that are ready for tenants to move in, bringing in good returns.
Fallowfield
Hundreds of thousands of students have called Fallowfield their home over the decades, and they’re not restricted to the official university halls of residence.
Because it’s an epicentre of student living, with bars, supermarkets, cafes and easy access to Oxford Road Corridor, many also choose to live there and rent privately. It’s an area where properties can be snapped up for excellent prices, with practically guaranteed tenancies between summers.
A property here is definitely worth considering as a long-term investment, with 51% of students opting to remain in Manchester once they’ve graduated.
Victoria North
With its £4 billion investment plans, Victoria North has to be Manchester’s most ambitious regeneration project ever. It covers vast swathes of north Manchester and will bring 15,000 new homes across seven distinct neighbourhoods, alongside the new City River Park.
The first homes are already completed, with gradual growth coming over the next decade. It’s another long-term possibility for investors, as those who get in early could see great returns if the project is as successful as hoped.
Didsbury and Chorlton
To the south, outside the city centre but within the M60, Didsbury and Chorlton have long been stable and attractive places for young professionals to live.
The character of the respective properties is quite different. The suburban towns have traditionally comprised semi-detached and detached houses, many of which have been converted into flats over the past thirty years. That said, there have been dozens of apartment blocks built in both areas recently. In the city centre, properties are almost exclusively apartments.
Typically, a flat in Didsbury or Chorlton is larger than one in the city, and will cost more per square metre too (£5,765/m² in Didsbury vs. £2,707/m² in the city centre in this example). These are properties aimed at two very different lifestyles, of course, and might broadly reflect how much time people spend staying in or going out.
When it comes to rental, the picture is flipped on its head, with city centre rentals generally being higher per apartment. That could make for an easier decision if investing for rental income, but of course, it all comes down to individual properties, and what is included in them. There are less desirable areas of even the leafier suburbs, so it can never be a straightforward choice between two districts.
New development or time-served favourite?
If you’re not familiar with the most promising areas of a city that’s on the up and up, we hope this quick guide will give you some starting points towards choosing a successful portfolio.
With properties in a diverse range of settings to choose from, do your research, and a sound investment strategy could be right inside the M60.
For more information on investment opportunities specific to Manchester, or if you’re simply wondering about how the UK market is evolving and when the right time is to start your property investment journey, reach out to our team, who will be happy to answer any questions you may have.
FAQ’s about Manchester Property Investment Areas
Prior to investing in a Manchester property, it’s normal to have questions to ensure that you’re making the right choice.
The questions below are those we’re often asked relating to Manchester property investing specifically.
Is there a difference in investment opportunities for regenerated versus established areas?
Yes, and it’s ultimately down to timing and studying burgeoning areas, alongside an appetite for risk in regards to the area that isn’t as established as its counterparts.
Naturally, you can expect returns to be higher in areas with investment opportunities where average property prices are less than established ones at the time, so it’s ultimately a case of the level of risk you’re comfortable with as an investor (and how you utilise current market data to make informed investing decisions).
What’s the best way to research the types of tenants I’m likely to have based on the location I’m buying property in?
Conduct research to understand what the core focal points of the area are, and work with that data to complete a picture of the tenant profile for that specific segment of the location you’re investing in.
For example, properties close to universities are likely to have a strong student and newly graduated population, versus areas such as Didsbury and Chorlton with an older demographic who are likely more established and renting properties at a higher monthly cost.
Is the price of rent settling in Manchester (based on recent data) something for investors to worry about?
It’s important to consider how sustainable yearly growth is for any UK city and, in this context, Manchester experiencing a 55% rent price rise over the last 5 years is an incredible statistic for any investor.
That’s also not to say that rents won’t continue to rise, nor does it suggest that dips are inevitable due to a slow period or a lack of interest in Manchester as a city to live in.
It’s also important to consider the continued regeneration of Manchester as a whole, both across established areas and those coming onto the radar of investors and those moving outside of the city centre alike.