Widely regarded as Britain’s second city and possibly one of the most exciting, cultural and forward-thinking cities, Manchester’s rental appeal is reaching fever pitch for numerous reasons.
From the BBC’s £180 million move north back in 2011 to a Council investment of £3 billion into Manchester’s transport network, the city is rapidly transforming its physical appearance and rejuvenating its economy.
As the third most populous metropolitan area of the UK and growing, Manchester’s future looks bright.
Who lives there?
Manchester has a population nearing 515,0001 and a relatively youthful population at that, with 33% of the city’s population being between 25 and 44, and just 9.5% are above 652. This trend is one that is expected to continue with businesses and people alike heading north from London, attracted by cheaper rents and a lower cost of living in comparison as Consumer Prices in Manchester are 14.67% lower than in London3.
Manchester sits in the nation’s second most populous urban area; Greater Manchester, which is home to 2.55 million resident’s4. 24.5% of these residents are now aged 20-295, compared with 13.5% across the UK as a whole. With a vibrant, metropolitan culture and the largest single-site university in the UK, therefore the city with the biggest student community that currently sits at 70,875 registered students6, demand for rental accommodation is strong.
Increasing demand, rising rents
26.85% of households are rented and this number has risen over 10 percentage points between 2001 and 20117, with The City Centre showing the highest percentage of Private Rented homes, impressively totalling over 60%. According to analysis undertaken by The Telegraph, based on statistics from HSBC, landlords in Manchester are making the biggest rental yields. Here average house prices have increased by 4% from £104,244 in 2014 to £108,870 now, while average annual rents have kept pace, up from £8,316 to £8,628. The average rental yield here is 7.98%.8
People Aged 25 – 44: 169,757
Current Student Population: 70,875
% Housing Stock Let: 26.85%
Average Annual Rent: £8,628
Average House Price: £108,870
Average Rental Yield: 7.98%
Source: The Telegraph, 28 May 2015, Buy to let hotspots for 2015 revealed.
The bottom line
A growing alternative to London for young professionals seeking affordable rentals and investors looking for healthy rental yields, Manchester’s appeal shows no sign of slowing down.
1 ONS, 2014
2 Manchester City Council factsheet, 2015
4 ONS, 2013-4.
6 Manchester City Council factsheet, 2015
7 Manchester City Council census summary