Manchester is the UK’s New Buy to Let Hotspot
Manchester has risen through the ranks to become the UK’s most appealing and profitable prospect for Buy to Let investments. That’s according to the latest figures from Aldermore’s Buy to Let City Tracker, which positions the city of Manchester above all other UK regions as the country’s new hotspot.
The second best location for Buy to Let investments was Cambridge, followed by London in third place.
Aldermore’s tracker takes a number of factors into consideration, ranking towns and cities by way of short-term rent yields, average monthly rent prices, long-term returns through increasing house prices, the strength of the rental market in the region and total housing stock available.
Major residential and commercial development projects across Manchester since 2015 also contributed to its newfound status as top Buy to Let location, according to Aldermore.
Key Points of Appeal
Manchester has one of the lowest overall vacancy rates and available property inventories of any comparable city, resulting in average annual house price growth of 4.1%.
In addition, private landlords operating in Manchester benefit from consistently solid rental returns, fuelled by a city with one of the largest private rental markets in the UK – 31% of those living in Manchester currently rent privately.
Speaking on behalf of Aldermore, head of mortgage distribution Jon Cooper highlighted Manchester’s growing potential as a safe haven for Buy to Let investments.
“There has been a high level of uncertainty for landlords since the COVID-19 outbreak and they have had to continuously adapt to a raft of challenges but, with so many working from home right now, it reinforces the importance of a robust and diverse private rented sector,” he said.
“The changing needs of renters, whether to move to a new location or a different type of property to fit flexible working demands, has created investment opportunities for landlords,”
“The private rented sector is vital to the economy right now and its recovery from the pandemic so landlords should seek portfolio advice from their lenders to see how they can look at new ways to support the sector.”