Manchester has eclipsed London as the top destination for buy-to-let investors, according to a recent analysis from The Property Buying Company. A staggering 23% of investors are now focused on acquiring property in Manchester, compared to just 18% targeting the capital, highlighting a significant shift in investor appetite towards regional markets.
The city's stronger gross rental yields, standing at 6.6%, significantly outstrip London's 5.1%. Average rents in Manchester have risen by 3% over the past year to £1,349 per month, slightly below the national average of 3.4%. However, the overall investment proposition remains compelling due to the city's robust rental growth and attractive yields.
Manchester is not alone in attracting investors; Liverpool ranks third with 8% of investor interest, followed by Birmingham at 7%, and Luton and Nottingham each drawing 3% attention. The North West region collectively remains the most popular choice in England and Wales, with 18% of investors indicating it as their preferred location.
This shift in focus is mirrored in the region's property price performance over the last decade. Manchester has recorded a robust 63% increase in house prices, significantly outstripping London's modest 7% rise over the same period. Analysis by Rightmove highlights several suburbs within Greater Manchester as the fastest-growing local areas, reinforcing the region's long-term capital appreciation potential.
Karl McArdle, Co-Founder of The Property Buying Company, attributes Manchester's growing popularity to a combination of factors, including sustained population growth, high rental demand, and ongoing urban regeneration projects. He notes that demand for property in Manchester is nearly three times higher than in Liverpool and over three times higher than in Birmingham.
The findings come as the UK property market continues to rebalance, with estate agents shifting focus towards buyers and development activity thriving in regional cities like Liverpool. This data suggests that northern markets are increasingly competing effectively with London for buy-to-let capital, driven by favourable yield differentials and stronger capital growth prospects.