Manchester is one of the most desirable and livable cities in the UK. With a population of more than 2.8 million, Manchester has recovered rapidly over the past few decades and increasing demand for the city’s housing stock is making average house prices some of the fastest in the UK.
We take a look at some of the top Manchester zip codes with the best places to invest in property where investors can expect the best returns in the near future.
Why invest in Manchester
With some of the highest rental returns and capital appreciation forecasts, Manchester, and with it the Manchester property, has been named the UK’s best investment location Purchase for rent in 2021. From mid-2020 to mid-2021, house prices in Manchester rose 9.29% and the average house cost in the city is now £ 217,142. According to global commercial real estate company JLL, Manchester will see the highest revenue and rental growth of any major city in the UK by 2025, making real estate investments in Manchester extremely beneficial.
Of the Manchester zip codes, M4 is home to a number of very livable neighborhoods popular with young professionals. The Green Quarter is north of Victoria Station and is the location of newly regenerated neighborhoods that are perfect for city life, with lots of shops, cafes, breweries and pubs on the doorstep.
Located near the Northern Quarter, the Ancoats and New Islington area is another of the city’s hippest neighborhoods in the M4 zip code thanks to significant renovation. Known as the Arts and Theater District, it was voted one of Time Out’s top 50 coolest neighborhoods in the world and remains very convenient thanks to Manchester Piccadilly station, just a short tram ride away.
Currently, if you are looking to buy property in Manchester, the average prices in postcode M4 £ 231,209. Rent averages £ 934 per calendar month and the rental yield averages 4.8%.
The M14 zip code is for student areas such as Fallowfield, Moss Side, and Rusholme. Located in the south of the city, Fallowfield is in close proximity to the campuses of the University of Manchester and Manchester Metropolitan University and is only a 30-minute walk from the city center. Rusholme is also close to campus and is one of the most affordable student neighborhoods, making student dormitories a popular investment in this zip code.
The M14 postcode has properties with a current average asking price of £ 194,733, average rents of £ 1,636 per month and a yield of 10.1%: the fifth highest yield in the UK.
Manchester’s M1 postcode has seen price growth of 15% since 2015 and offers plenty of opportunity for investors. In addition to the popular Northern Quarter, home to the vibrant nightlife, restaurants and bars, the Piccadilly neighborhood is becoming one of the most popular neighborhoods in the city thanks to continued renovation and the emergence of luxury and affordable housing projects.
The average property price in postcode M1 is £ 235,361 with average rents of £ 1,096 and yields of 3.9%.
Among the Greater Manchester zip codes, Salford or M50 is the ideal location for those looking to be close to Manchester city center and the Salford Quays waterfront. Salford Quays is home to MediaCityUK and names like ITV and BBC, and over the past five years the number of businesses in the area has grown by 20%.
As a hotbed for young professionals, property prices are rising and there are many ways to capitalize on capital appreciation. The average property prices in the region are currently at £ 202.63, the average rent is £ 881 per calendar month and the yield is around 5.2%.
Manchester offers many options for those in search of it profitable buy-to-rent real estate. With the renovation changing the city, capital gains and high rental returns, there are many top postcodes in Manchester for UK landlords. Find out more about how to invest in Manchester by contacting our team.
frequently asked Questions
Is Manchester Property a Good Investment?
In 2021, Manchester saw annual house price growth of 5.9% year over year, and as redevelopment programs bear fruit and the city’s population continues to grow, that growth is expected to continue.
Why is there a real estate boom in Manchester?
House prices have risen sharply across the UK over the past year and the North West region has seen an increase of more than 15%. With many people now able to work from home due to the pandemic, more and more people are looking for property for sale in Manchester because it is cheaper than the capital, but still a highly attractive and livable city. In 2021 Manchester was one of the UK’s busiest housing markets and thanks to a strong economy, local job market and redevelopment, it continues to be an attractive place to live.