Historically, London has been the hive of buy-to-let investment hype in the UK and has seemingly been investors’ first choice, with previously more than three times the number of buy-to-let mortgages recorded in London than in Manchester. However, recent changes to Stamp Duty in April 2016 have seen this gap close by more than a half as investors look to increasing rental yields in Manchester offering a seemingly attractive return.
This is backed up by the statistics. In the first three months of 2017, there were 1,126 recorded buy-to-let mortgaged purchases in London compared with 840 in Manchester. Commentators note that this trend is likely to continue and some note that Manchester may surpass year-on-year figures of London.
This has been combined with an increase in the number of properties available: a 2017 Deloitte survey noted that there are currently 6,963 residential units under construction in Central Manchester and Salford; which is more than double the 2,994 constructed in 2007. Given the increase in demand, and paired with Mayor Andy Burnham’s introduction of a regional framework to increase the number of residential properties available in the Greater Manchester region, this surge in construction is likely to continue.
The BBC’s MediaCityUK development in Salford and an increasing student population have been cited as the key factors driving the property market in the region.
Should you require assistance with your purchase of a buy-to-let property or any property-related matter, please contact our Property department on 0161 832 3304.