As the football teams in the city have shown, international investment can have a major impact on what happens in everyday life. City and United have always been major names in the game and of course, the input of Alex Ferguson was more important than anything the Glazers have done but both the red and blue quarters of Manchester can point to major international investment and say that’s part of the reason we are where we are today. United fans will say that City fans should say this louder and longer but let’s not get bogged down in the details.
There are many observers who’ll tell you that looking at the nature and style of the local football team(s) will provide plenty of insight into a city or town itself and when it comes to international investment in Manchester, this may well be the case. Manchester is developing a reputation for being the biggest investment city in the country and international investors are looking for information and opportunities in the city. Foreign investors are no longer focused or fixated on London and the Northern Powerhouse is definitely one of the main reasons why this is the case.
Some important stats that should be considered include:
- Only 63% of people in the United Kingdom currently own their home, and this is the lowest the figure has been at for the past 30 years
- The private rented sector (PRS) now accounts for 28% of Manchester homes, compared to 25% in London
- In the last 10 years, the growth of Manchester PRS households has been 85%
- Recent figures suggest that 230,000 people rent their Mancunian home
When it comes to investing, people are looking for a return on their investment and in the rental market, the key factor is rental yields. The average rental yield in Manchester is 7.98%, a figure which is 1.5 times larger than Newham, a London borough. That is relevant because Newham is the London borough that performs best when it comes to rental yield.
Manchester fares well compared to London
Compared to areas like Kensington and Chelsea, which are high class areas, Manchester offers a rental yield that is 5 times greater. When you factor in the cost of buying property in these areas, and overlooking the fact that you’re as likely to meet reality TV stars as footballers or proper celebrities, investors have to see that the Manchester property market is the market that is most attractive to them.
There is an issue though with the fact that Manchester currently has one of the lowest levels of housing supply in the UK, which means that many investors are moving out of the city and into the Greater Manchester area. With Manchester Airport located to the south of the city, this is an area that is becoming familiar to foreign investors, and this means there is a growing level of focus on property investment opportunities in this area.
For all your property needs, please contact Spencer Harvey Estate and Letting Agents on:
0161 480 8888
https://www.spencerharvey.co.uk