Student landlords in Manchester enjoy highest yields in UK

Manchester’s housing market is a true property success story in both the North West and wider UK in general.

Manchester’s housing market is a true property success story in both the North West and wider UK in general.

Spurred on by phenomenal population growth as a result of an increasing student population, student retention rate in the city and a growing desire to live in central urban hubs over the last decade, Manchester’s booming population is expected to rise to 60,000 within the next eight years. That’s a tenfold increase on the 6,100 who called the city centre home at the turn of the millennium

And Manchester’s thriving higher education scene has influenced more than just property demand.

The reputation of Manchester as a place to live as well as work has completely changed. The city is home to culture, a genuine city to visit for international tourists and a hotbed of tech start-ups and business innovation.

More skilled students mean more available talent who are staying in the city to snap-up well-paid jobs. These students then move onto the residential rental market, which is also outpacing expectations.

It’s a winning formula.

Student landlords in Manchester

So whilst it’s been reported that many Londoners are abandoning the capital to start new lives in what’s comparatively a bargain of a city to live and play in, it’s those passing through the hallways of Manchester University, the University of Manchester Institute of Science and Technology, Manchester Metropolitan University and Salford University which are really driving sustained city-wide growth – both in population and property asking prices.

Read more: Manchester ranked as the best city to be a landlord in the UK

According to data compiled by TotallyMoney, the highest yielding postcode in Manchester at a staggering 10.1% is M14 – a block of residential neighbourhoods straddled by Moss Side, Fallowfield, Rusholme and most importantly – just south of the University of Manchester.

The second highest yield postcode is just west of there at M19 (8.6%) followed by M20, further south covering plots between Cheadle and Withington at 7.1%.

Another crucial factor with both M14 and M19 is the average asking price of property, £195,000 and £186,000 respectively, markedly cheaper than central Manchester. Average prices in the M1 postcode area are just shy of £340,000.

Read more: Manchester central residential sales jump over 50% in H1 2018

The city’s skyline is dominated by cranes and skyscrapers in various stages of development to cope with increasing demand, whilst student landlords flock to Fallowfield, Withington and other traditional student hubs to adapt properties and turn a profitably annual yield.

All in all, it’s a great time to invest and be a landlord in Manchester, especially in the student market.

Read more market news and updates on our Manchester property news blog.