Best buy-to-let areas in Manchester in 2016
Manchester tops the list of buy-to-let locations with the best rental yield, but if youíre thinking of buying property in the city, which postcodes are the most promising?
Manchester is the jewel in the crown of the much-touted Ďnorthern powerhouseí, so itís receiving plenty of infrastructure investment and a lot of attention. If, like the majority of buy-to-let landlords, rental yield is your focus when youíre considering where to invest, itís worth giving the city some serious thought.
These are some of Manchesterís buy-to-let hotspots.
Best areas for buy-to-let in Manchester
South of the city centre, the M14 postcode includes places like Fallowfield, Rusholme and Moss Side. The main University of Manchester campus is close by, so this is the most popular part of the city for student rental.
Moss Side was once notorious for riots and gang violence, but itís received lots of investment thatís helped to turn it around. Buses into the city centre take only ten minutes, and thereís a good cycle network too.
This postcode is a top pick amongst buy-to-let investors, who have enjoyed rental yields of well over 8 per cent in the last couple of years.
North west of the city centre, the M38 postcode includes Little Hulton, where property prices are very reasonable: a terraced house will set you back about £70,000.
Itís far from the smartest part of town and its reputation isnít the best, but it qualifies as a Manchester buy-to-let hotspot as landlords have reaped rental yields of over 7.6 per cent.
Thereís a villagey vibe to the M25 area, which is north of the city centre and includes the town of Prestwich. Residents can get into the centre of Manchester in 15 minutes by tram, while the nearby M60 makes the rest of the country easily accessible too.
Yet again, affordable housing in this area means that you can expect healthy rental yields: on average, one bedroom properties bring in 7.7 per cent.
The M9 area, where youíll find Moston and Blackley, is north east of the heart of Manchester. It suffers from a somewhat rough reputation, but it is renowned for excellent transport links, with the motorway five minutes away and great bus connections into the city centre.
Convenience paired with low property prices make it another Manchester buy-to-let hotspot, with rental yields of over 7.5 per cent for one bed properties, and 7.25 per cent for two beds.
What should you look for in a Manchester buy-to-let investment?
Good transport connections are key, both for attracting tenants and for when you come to resell the property. Data from Nationwide in 2015 showed that buyers in Manchester were prepared to pay 4.6 per cent more on average for a home within 500 meters of a tram stop.
Also keep in mind university locations and popular student areas, as student rental can bring particularly good rental yields.
Finally, look out for areas that are up-and-coming and where thereís investment, but be a bit wary of areas if thereís lots of new housing going up. This could lead to oversupply, which may cause rental returns to plummet.