A league table by Aldermore Bank has ranked Manchester one of the best cities for buy-to-let property investment, ahead of London, with a trickle-down effect bringing attention on surrounding boroughs like Stockport.
Aldermore Bank analysed 25 UK cities to find the best places to invest. The study looked at factors including average rents, house price growth, percentage of renters in each city, and occupancy rates.
While Oxford topped the league table, Manchester’s buy-to-let market ranked in second, ahead of Edinburgh and London in third and fourth respectively.
The strong local economy in Greater Manchester has helped attract renters, typically younger residents, to the city-region, increasing returns on buy-to-let investments. It is speculated that the move of the BBC to Salford Quays has helped to attract more investment from outside the region, including overseas.
Richard Ignatowicz, director of Wilmslow-based e-mortgage consultants Mortgage Savers, said:
Having recognised the excellent returns, investors are now seeing other parts of Manchester experiencing a ripple effect, within easy commuting distance to the city centre. HMO [houses of multiple occupation] conversions are especially popular and currently providing double digit returns.”
Damian Thompson, director of mortgages at Aldermore Bank, said:
Aldermore’s Buy to Let City Tracker shows there are still great short and long-term investment opportunities for landlords. The number of people renting in the UK has been rapidly growing, up 1.7 million in 10 years.”
A LendInvest report last year saw ranked Stockport higher than Manchester for the first time in its index of buy-to-let hotspots, however Stockport was not considered in the Aldermore survey.