Buy-To-Let Manchester: The 10 Best Areas & More

Contents

• Why Buy To Let?
• Why Manchester?
• The Best Buy-To-Let Areas In Manchester
• Should You Invest In Manchester Or Liverpool?
• Manchester Student Market
• Types Of Buy-to-Let In Manchester
• How Much Do You Need?
• Summary

Why Buy-To-Let?

A buy-to-let is any property purchased to let it out. This can be through a short-term model (e.g. Airbnb) or as part of a long-term, traditional tenancy agreement.

There are, of course, other property investment strategies, but we’re huge advocates of buy-to-let. Here’s why:

• Monthly rental income should more than cover all costs, providing passive income for the landlord
• Long-term, properties tend to increase in value (even accounting for temporary dips, like a global recession or a pandemic)
• Properties can usually be bought with a mortgage, requiring a much lower initial investment
• Modern buy-to-let projects often have property management companies in place, allowing for a hands-off investment
• There’s a wide resale market as a proven, high-performing rental property will always attract interest from other investors

Why Manchester?

You could purchase a buy-to-let anywhere, so what makes Manchester a good choice?

In our opinion, there are four clear reasons:

• Rental prices are growing
• High average rental yields
• Property values are growing
• It’s a desirable place to live, work and visit

Rental Price Growth

Boosted by higher demand than ever, the average rental price in Manchester has increased faster than the national average – about 12% year-on-year as of August 2024.

High Rental Yields

Rental yields are a strong indication of the profitability of an investment. They are calculated by dividing the annual rental income by the property’s value, resulting in a percentage. The higher the yield, the more profitable the investment.

In our research, Manchester has an average rental yield of 6.7% – the sixth-best in the UK. This easily outperforms buy-to-lets in London, which average 4.4%.

Strong Capital Appreciation

Property values all across Greater Manchester have shown excellent growth in recent years. Data from the HM Land Registry shows the average sales price has increased by 37%  – from £175,688 in September 2019 to £240,741 in July 2024.

This is another string in Manchester’s bow. Capital appreciation can net buyers huge returns on their investments.

A Leading, Modern City

Simply put, Manchester is a city that people want to live in. TimeOut even named one of the best cities in the world.

The UK’s second city is an equal match for London, with a booming job market, top transport links, world-class bars and restaurants, high-quality property, vast regeneration schemes, and a famed history in music, sport and culture. Yet, the cost of living is up to 30% lower, with property proving to be far more affordable.

The city attracts tourists, too. The visitor economy is worth over £7.5bn annually, with Manchester the third-most visited city in the UK after London and Edinburgh.

All of this should be welcome news to a buy-to-let investor. Desirability boosts rental demand and increases property values.

The 10 Best Buy-To-Let Areas In Manchester

It’s clear Manchester is an excellent choice of location, but where are the best places in the city for investors to consider and research?

To answer that question, we’ve turned to market data to find the postcodes with the highest average rental yield.

The results are in the table below.

Postcode	Area	Avg Property Price	5 Yr Price Change	Avg Monthly Rent	Avg Rental Yield
M14	Fallowfield & Rusholme	£230,285	41%	£2,427	12.00%
M13	Ardwick, Longsight & Oxford Road	£276,719	45%	£1,894	8.20%
M11	Openshaw & Etihad Stadium	£187,240	17%	£1,242	8.00%
M18	Gorton	£185,024	24%	£1,204	7.80%
M19	Levenshulme & Burnage	£275,442	38%	£1,718	7.50%
M40	Miles Platting & Moston	£202,403	35%	£1,164	6.90%
M15	Castlefield & Hulme	£242,512	20%	£1,400	6.90%
M5	Ordsall & Salford	£216,893	4%	£1,217	6.70%
M50	MediaCity	£231,699	21%	£1,262	6.50%
M4	Ancoats & New Islington	£248,657	28%	£1,263	6.10%

1. M14 – Fallowfield & Rusholme

While many would have expected the city centre to dominate, that’s not the case. Instead, it is M14 that offers the best rental yields in the city.

M14 is home to most of Manchester’s students, containing the student-dominated Fallowfield and extending towards the city centre via Rusholme’s famous Curry Mile. Student accommodation is known for consistently generating exceptional yields.

2. M13 – Ardwick, Longsight & Oxford Road

Neighbouring postcode, M13, also performs well for similar reasons.

Starting in Longsight, the postcode stretches all the way up to the very edge of the city centre, covering Ardwick, Manchester Royal Infirmary, the University of Manchester campus, and much of the popular Oxford Road.

Once again, this is a student-heavy area, so it’s no surprise to find stronger-than-average yields.

3. M11 – Openshaw & Etihad Stadium

Following Sheikh Mansour’s purchase of Manchester City Football Club in 2008, millions of pounds has poured into the areas surrounding the club’s Etihad Stadium.

A new tram station, a training complex, grounds for female and academy teams, and much more.

The new Co-op Live, an entertainment arena, opened in 2024.

This has helped revive an area with high levels of deprivation previously. As Manchester’s city centre continues to expand outwards, and development of the inner-city regions continues, you can expect M11, which extends out to Openshaw, to benefit.

4. M18 – Gorton

M18, covering much of Gorton in East Manchester, is one of the most cost-effective areas of the city for a buy-to-let.

With average property prices of just £185,240, but strong yields of 7.8%, M18 has the potential to deliver exceptional returns for landlords.

5. M19 – Levenshume & Burnage

Manchester has many areas that are widely considered “up-and-coming”. One area that has worn that tag for a long-time is Levenshulme, mainly covered by M19.

But why?

It’s fairly close to the centre, has excellent transport links (with a metrolink line mooted), and a lively high street filled with independent stores, cafes, and bars.

Plus, it’s close to West Didsbury, where the average house price us £382,437, and Stockport’s highly sought-after “Four Heatons”. As a result, many who can’t quite afford those areas move to the more affordable Levenshulme as an alternative.

Finally, a few years ago Levenshulme was named one of the best places to live by The Sunday Times, no doubt contributing to further demand for the area.

Buy-to-let investors may wish to pay attention to this trend. If these areas are attracting buyers, the likelihood is they’ll attract renters too – especially with ongoing regeneration schemes and the fact they’re within easy reach of the city centre.

6. M40 – Miles Platting & Moston

M40 extends from the edge of Ancoats in the centre of Manchester to Moston, on the way out towards Oldham.

It’s a historically poorer area, although the influx of investment in the city is spilling over into parts of Miles Platting.

Plus, with good transport connections into the city, average house prices are rising quickly (35% in the last 5 years).

Coupled with a solid average yield of 6.9%, there are plenty of opportunities here for investors.

7. M15 – Castlefield & Hulme

The northern boundary of M15 sits on the cusp of the city centre, and is home to an assortment of modern high-rise apartment blocks.

Considered to be part of the stylish Castlefield, scores of young professionals rent with friends and colleagues along Pomona Wharf, St George’s Island, or, for somewhere more affordable, in Hulme.

It’s an easy walk into Manchester from here, especially for those living near the canal.

M15 also stretches eastwards, towards Oxford Road. This area will be a big draw for students looking for housing nearer to the University campuses.

8. M5 – Ordsall & Salford

In recent years, following a slew of regeneration projects, parts of Salford have become high-demand rental hotspots.

Ordsall, in particular, is one of those spots.

Here, modern apartment blocks aimed at young professionals sit just shy of Manchester city centre – separated only by the bends of the River Irwell.

9. M50 – Salford Quays & MediaCity

Just over a decade ago, Salford Quays, where MediaCity is located, was a post-industrial area with little attraction beyond the waterfront.

Then, the BBC and ITV relocated many of their operations to MediaCity, creating a vibrant, purpose-built community for the UK’s media, digital, and tech industries.

Today, it’s home to national broadcasters, creative startups, and a range of independent bars, cafes, and restaurants.

For investors, the area has become a magnet due to the increasing demand for high-quality rental properties, particularly from young professionals working in the area.

This demand, combined with ongoing development and a modern lifestyle appeal, has resulted in strong rental yields (6.5%) and solid capital growth (+21% in the last 5 years).

10. M4 – Ancoats & New Islington

Ancoats is a case study in regeneration.

As few as 10-15 years ago, going to Ancoats would be unheard of. There were some apartment blocks, but most locals would spend their time on the other side of Great Ancoats Street, in the bars and cafes of Manchester’s Northern Quarter.

Now, it couldn’t be more different.

You could spend an entire weekend in Ancoats and not have to move. And many people do.

Victorian warehouses have been converted into stylish apartments, an entire marina has opened up, and the area is home to a host of wine bars, breweries, cafes, bakeries, and restaurants (Manchester’s sole Michelin-starred restaurant, Mana, is on nearby Blossom Street).

Rental demand has shot up, leading to strong yields and sustained price growth.

Should You Invest In Manchester Or Liverpool?

Separated by a mere 34 miles, Liverpool and Manchester have long been fierce rivals.

One gave the world Oasis, The Smiths and The Stone Roses, the other gave us arguably the most famous and successful band ever, The Beatles.

While in sport, illustrious football clubs from both cities have battled away for decades.

But what about property? Which is the better choice for a buy-to-let investor?

In a recent post, we compared whether it was better to invest in Manchester or Liverpool.

Historically, they’ve both suffered from economic deprivation, but the outlook could not be any more different today. Huge investment has stimulated a rapid improvement in their fortunes since the 1990s.

As such, it’s hard to split the two.

Manchester is predicted to offer better growth in rental values and property prices over the next few years, but Liverpool is slightly more affordable.

In our opinion, you can’t go too far wrong with either. Manchester and Liverpool represent the two best cities in the UK for property investment.

For more on Liverpool, read our guide: Where Are The Best Buy-To-Let Areas In Liverpool?

Manchester’s Student Market

Greater Manchester has two major universities: The University of Manchester and Manchester Metropolitan University. There are also several other educational institutions, such as the highly-regarded Royal Northern College of Music and The University of Salford.

Overall, there are approximately 100,000 students in the city at any one time. And there’s an impressive graduate retention rate of 51% (the second-highest in the country after London).

Plus, international students form approximately 20% of the University population.

And where students go, business follows. Manchester’s conveyor belt of top talent has influenced companies such as Amazon, Google, Microsoft, Booking.com, and others, to set up offices in the region.

The point for investors is this: thousands of students and young professionals are choosing to live, study and work in Manchester every year. This will help sustain and grow the rental market, making it a worthy choice for a buy-to-let.

For more about Manchester’s student market, read our guide: The Best Areas For Student Property Investment In Manchester

Types Of Buy-to-Let Properties In Manchester

HMOs

A house in multiple occupation (HMO) is a property where several tenants (usually at least 3) co-reside and have separate tenancy agreements with the landlord.

This type of property naturally includes student housing. As such, you’ll find plenty of HMOs in Manchester’s student-heavy areas, like Fallowfield, Hulme, Rusholme, Withington and along Oxford Road. There are non-student HMOs available all across the region, too.

Whilst a student HMO tends to generate a good yield, it will usually require a hands-on landlord to maintain and manage the property. Tenant turnover is higher, too.

Plus, it’s worth keeping in mind that many students are now opting for purpose-built student accommodation (PBSA) over the traditional house share. PBSA is generally much higher quality and offers on-site amenities, like gyms, private parking, and communal rooms. They’re a student version of the all-in-one, city-centre residential blocks that have become incredibly popular for young professionals.

PBSA

PBSA, or ‘purpose-built student accommodation’, are apartment blocks built to provide higher-quality student flats for either individual students or groups.

Manchester City Council has recognised an undersupply of PBSA in the city and wants to increase the number of PBSA units available over the coming years. These will likely come along Oxford Road and into the city centre.

As with any student housing, PBSA is generally cheaper than a typical residential property, yet offers consistently high yields. The downside is that property values tend to not grow as quickly.

City-Centre Apartments

In the past 10 years, Manchester’s skyline has changed dramatically. The Beetham Tower in Castlefield once stood alone as the tallest building in the city. It now has two residential blocks at Deansgate Square for company, with the South Tower taking the mantle as the tallest (and in fact, the tallest building in the UK outside London).

New blocks have been erected at a frightening pace. Nearly 50% of the buildings over 50m in Manchester have been built since 2010. Many have been in the city centre to house young professionals.

The performance of these blocks is fantastic. Young professionals are willing to pay good prices for high-quality apartment blocks in central locations, so yields are strong. Meanwhile, the value of such properties grows quickly.

We tend to recommend this type of property most often to our clients. There are two options: properties that are already complete, or properties in construction (which we refer to as “off-plan”).

We think there’s a tremendous amount of value to be had in off-plan property, especially for buy-to-let in Manchester where there are a number of impressive projects in the pipeline. You can learn more about off-plan property here.

How Much Will I Need?

The budget required to purchase a buy-to-let in Manchester will depend on the property you’re after.

Our suggestion is to set aside a minimum of £50,000. This is a reasonable starting sum that most first-time investors have available. With £50,000, cities like Manchester are excellent choices as property values are still low enough that your budget can cover a mortgage deposit on a city-centre apartment.

We’ve discussed how to invest £50k in property previously. You can invest in property without vast amounts of capital, especially if you target off-plan properties.

However, £50,000 may not be enough if you’re looking to invest in one of Manchester’s PBSA schemes. Although values are lower, PBSA cannot be bought with a mortgage and must be paid in full by cash.

Summary

By this point, the reasons to invest in a buy-to-let in Manchester, and the long-term benefits of doing so, should be clear.

We consider it to be the best city in the UK (along with Liverpool) for buy-to-let investment, and there is value to be found all over Greater Manchester.

Aside from the popular, well-known areas across the centre, our research into the best areas has sprung several surprises that highlight the value of looking around.

And that’s why we review all of the latest projects within the city to find suitable investment opportunities for our clients.

If you’re interested in learning more or finding a property, please get in touch and one of our team would be more than happy to run through your options.

We’ll support you through every stage of your investment journey, from finding a property to providing after-sales construction updates. We don’t charge any fees for our service and we’re part of the Property Ombudsman, an organisation designed to protect investors.

About Our Data

The data in this article is an accurate representation of the Manchester property market as of October 2024. We’ll update this report next year, in 2025, with fresh data.