At the tail-end of 2018, there was a study undertaken by Shawbrook Bank and they concluded the North West was the best place to invest in property in England. They cited low property prices and a high number of students as key factors that led to attractive rental yields and fewer void periods.
In the summer of 2018, information found in the Hometrack Cities House Price Index suggested Manchester was the top area when it comes to property investment in the United Kingdom. The figures suggested an expected rental yield that was close to 7%, ensuring Manchester compared very well with other areas for buy to let opportunities.
The student population makes Greater Manchester a smart choice for buy to let investment
There has been a lot of development in and around Manchester but the starting point for many investment opportunities comes with a dependable student population. When you have the University of Manchester, Manchester Metropolitan University and the University of Salford, amongst others drawing in students, there will be demand for rental property. Also, Manchester not only has a large student population, but it also has a graduate retention rate that is larger than 50%.
With a high percentage of students staying in and around Manchester after they finish their course, and new students coming in every year, the demand for rental property is apparent in and around Manchester. We’re pleased to say that with Stockport being connected by a dependable rail link to the heart of Manchester (and the bus service is reliable too), and a thriving local entertainment scene and community, this is an area that has a lot to offer and we can help you find your ideal investment opportunity here.
How to start off when entering the buy to let market
Now that you know there is a fantastic location for buy to let investment, here are some key starting points to help you enter the market:
- Ensure you have a sufficient deposit, aim for 20%
- Make sure you have a business plan and you approach this opportunity in a professional manner
- Only buy a property when you have a type of tenant in mind
- Work out if you are going to act as a landlord yourself or whether you will use a letting agent
- Bear in mind that property values alone will be unlikely to provide you with a worthwhile return on your investment
You also need to make sure that you have your finances in place. Mortgage lenders are very strict in the buy to let market and you should be prepared for this being a sterner challenge than obtaining a mortgage as an owner occupier.
However, if you can meet these requirements, you are well on your way to becoming a landlord and you will find that Stockport, Greater Manchester and the North West has a lot to offer.
As Stockport property specialists, we want to ensure you stay in touch with the latest property news. If you are looking for assistance in this area, give Spencer Harvey a call on 0161 480 8888 or send us an email at info@spencerharvey.co.uk. For a free valuation please visit: https://www.spencerharvey.co.uk/valuation-enquiry.html