Manchester is becoming a buy to let investment hotspot according to the boss of a leading property management firm.
David Alexander of Apropos by DJ Alexander has analysed the latest average house prices and found that prices in Manchester rose by 44.7 per cent over the last five years compared to a UK average of 23.7 per cent - while England as a whole rose an average of 25.3 per cent, and a rise of 22.4 per cent for North West England as a whole.
Manchester has seen average property prices rise by 5.2 per cent over the last year against a one-year rise of 1.2 per cent in the UK, 0.9 per cent in England, and 3.4 per cent in the North West.
On top of that, the city of Manchester has had the greatest population growth outside London and the Greater Manchester area is predicted to increase by 2031 to 2.95m from 2.68m.
David Alexander says: “Manchester has long been a fashionable and attractive city attracting many thousands of people drawn to its night life, job prospects, and lifestyle. However, the city has had a growing gap between mortgage affordability and earnings with those on median incomes experiencing a ratio of earnings to median house prices of 5.74 in 2018 which is the highest ever figure, with the second highest figure in 2017 and the previous peaks occurring in 2006.
“This means that there are a growing number of well-paid individuals who want to live in the city but cannot immediately access a mortgage and are therefore keen to live in the private rented sector.”
He adds: “For individuals and investors, Manchester, offers a potentially great return on their home or their investment. It is clear that social housing will not fill the property gap which is occurring in Manchester so it will be the private rental sector which fulfils renters needs for many years to come.”