Is UK Property Still a Good Investment?

At Henley Capital , we recommend buy-to-let property in key Property Hot Spots where features that include:

• high-levels of economic growth
• strong presence of blue chip companies
• high levels of employment in professional industries including finance, tech, media, etc.
• large students numbers in Higher Educational Institutions
• strong levels of post graduate retention to add to the talent pool for blue chip companies and fuel population growth
• large scale regeneration schemes are underway and in the pipeline
• good average income to property price ratios providing room for property price growth
• supply and demand imbalance for good quality private rental accommodation

Where Should I Invest in UK Buy-to-Let Property?

Manchester remains the #1 choice in the UK for property investors due to its continued high rental and capital growth in recent years, far outperforming the national average.

Manchester experienced 9.3% annual price growth from May 2022 to May 2023, showing its resilience. Furthermore, industry experts forecast a further 19.3% price growth over the next 5-years which looks set to be exceeded!

Why is the Manchester Property Market so Strong?

• 82 of the FTSE 100 companies having a base in Manchester
• Billions of pounds being invested into a range of regeneration zones
• Home of the UK media industry
• Largest student population in Europe outside of London
• Highest post graduate retention rate adding to its talent pool attracting large businesses
• High levels of population growth

Manchester Rental Market

Manchester's rental market is extremely buoyant, with the leading lettings agent in Manchester reporting over 18,000 requests for viewings in under 30-days!

Rental values in the city increase by 4% in 3-months with industry experts expecting a 21.6% increase in rental values over the next 5-years providing investors with a high-yielding investment.

During the pandemic, there was a trend of renters demanding larger properties as they were working from home, moving further out of city centres for properties with gardens and green space. The current trend is a reversal of this space as renters re-assess their priorities, demanding homes closer to city centres creating an Urban Revival.

One of our most popular developments in Manchester completed in the first week of July 2023 and is now 90% tenanted in less than a month! This is indicative of the huge level of rental demand in the city.

Manchester Economy

Large companies have opened up offices, or, relocated to Manchester from the south to reduce costs and access Manchester's talent pool, including BBC, Amazon, Freshfields, Microsoft, AstraZeneca, Siemens, Ericsson, Google, Kellogg's, Barclays, Royal Bank of Scotland. 82 of the FTSE 100 companies having a base in Manchester.

This has opened up huge employment opportunities for Manchester's population, which has seen the fastest growth rates of jobs in the UK at 84% growth (1998-2015),followed by Leeds, Birmingham and Liverpool (Centre for Cities).

Manchester is now home to MediaCityUK, the largest purpose-built media location in Europe, home to major broadcasters including the BBC and ITV. Manchester's new central business district, Spinningfields, is known as the Canary Wharf of the North with big name tenants from the financial community, including PWC, Deloitte, HSBC and Barclays.

Greater Manchester is the third largest regional economy in the UK, comprising of key employers with annual Gross Value Added (GVA) of £66.4 billion. Manchester is one of the main players in the government's Northern Powerhouse initiative, with regeneration, improved infrastructure and connectivity with London, providing a major boost to its economy.

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