Is Manchester a landlord’s paradise? The pros and cons of owning a rental property in the city

Often dubbed the ‘Northern powerhouse’ and home to over 550,000 residents and an array of businesses, getting a property in Manchester could be a smart move for buy-to-let investors. 

Here, we have assessed whether Manchester is a landlord’s paradise and the pros and cons of owning a rental property in the city. 

What are the benefits of owning a buy-to-let in Manchester?

Manchester is a thriving city with amazing shopping centres, restaurants and bars, parks, multiple prestigious universities and two world class football teams. 

Ultimately, being a landlord won’t make sense if it causes you to lose hoards of money on maintenance, repairs, and overheads. Research the local market to invest in an area that will provide a strong yield.

The monthly rent will provide you with a healthy income 

You should only invest in a buy-to-let if it will provide you with a steady income. This means the location should be a desirable place to live and attract tenants who are able to pay higher rent. 

Our research into Manchester rental prices showed that you can get a healthy income from having a buy-to-let in the city.

Rent prices in Manchester are higher than the England average

We gathered data from the ONS Private rental market summary statistics in England for April 2022-March 2023 on the average monthly rent for different types of rental properties in Manchester and England. We then compared average monthly rent in Manchester vs England and did this for one bedroom, two bedroom, three bedroom, and four+ bedroom properties.

For each of these four sizes of property, the average rent in Manchester was higher than the England average across the board, without fail. This proves that landlords can stand to make a handsome income from owning a rental property in Manchester.

Importantly, the higher rent you collect from tenants in Manchester could enable you to make larger rental yields. However, this will hinge on your outgoings like maintenance, repairs and letting agent fees.

Source Office of National Statistics https://www.ons.gov.uk/peoplepopulationandcommunity/housing/datasets/privaterentalmarketsummarystatisticsinengland 

Rent prices in Manchester are higher than in other parts of the North West

North West England is home to several highly populated towns and cities, including Liverpool, Preston, Blackpool and Lancaster. But how do rent prices in the metropolitan borough of Manchester compare to these other places in the North West? 

As you can see from the data below, landlords can expect to collect higher rents in Manchester in comparison to other significant towns and cities in the region. For example, you will see that the average monthly rent price for four+ bedroom properties in Manchester is more than double that of the same properties in Blackpool. 

Source – Office of National Statistics https://www.ons.gov.uk/peoplepopulationandcommunity/housing/datasets/privaterentalmarketsummarystatisticsinengland 

Your buy-to-let in Manchester will always be in high demand 

Manchester, the third most populated city in the UK, is a magnet for attracting renters and newcomers. 

Home to various restaurants, bars, and electric concert venues including the Albert Hall and the Stoller Hall, Manchester is popular amongst professionals who seek entertainment after hours. With two top universities, Manchester also has a substantial student population. 

Neighbourhoods of Manchester which are increasingly popular with renters include

• Fallowfield (a good option for student landlords) 
• Trafford
• Didsbury
• West Dewsbury

In addition, the trendy Salford Quays is just down the road from central Manchester, and the area is popular with renters, particularly young professional tenants.

Your property will attract established professionals

Chasing unpaid rent can be an endless headache for landlords. So, try and get tenants with a stable income that will reliably pay their rent on time every month.

Fortunately, the Greater Manchester area is a true employment hub, with plenty of opportunities and thriving sectors. As a result, your buy-to-let in Manchester will be highly attractive to established professionals. 

Manchester benefits from excellent commuter links 

Thanks to the Metrolink Tramway system which consists of 57 miles of track with 93 stops throughout Greater Manchester, the city has excellent commuter links. The leafy suburb of Didsbury is an easy commute to the city centre, with Didsbury Village-St Peter’s Square in the city centre a 24 minute tram ride away.

If you’re looking for a commuter belt town outside the city, Middleton is popular for buy-to-lets. A bus and a Metrolink tram get you into Manchester city centre in around 45 minutes. 

Salford Quays is also home to business offices and even a BBC broadcast centre! It is served by a reliable Metrolink Station that is well connected to the rest of Manchester.

There are plenty of affluent areas of Manchester to invest in

Manchester is home to plenty of well paying job opportunities and dedicated professionals. Hale and Hale Barns in Trafford are widely considered to be the most affluent areas of Manchester, and houses can sometimes sell there for millions of pounds. Therefore, it also follows that landlords with buy-to-lets in these areas can make a handsome income from monthly rent. The average salary in the local authority of Trafford in Manchester is £39.2K, but this will be much higher in certain streets of Hale and Hale Barns. 

What are the cons of owning a buy-to-let in Manchester?

Overall, the data we have found shows that Manchester could be a landlord’s paradise. However, like anywhere, there are some cons of owning a rental property in Manchester. 

Property maintenance, repairs and upgrades can eat into your profits

If you use a letting agent, they will send out contractors to carry out property maintenance and repairs. This upkeep can eat into your profits if there are ongoing issues. Therefore, it is important to get an in-depth building survey done before you commit to buying a buy-to-let in Manchester.

If you are a private landlord managing things yourself, you may hire trusted tradespeople to carry out work at your Manchester buy-to-let.  

According to Hamuch, an electrician installing a plug socket on average costs £130, but in Manchester, this will set you back £170. This shows that property repairs are a bit more expensive in Manchester.

Source – https://www.hamuch.com/rates/electrician/manchester 

Higher crime rates 

As is the case with a lot of major cities, the crime rate in Manchester is higher compared to other places. For instance, in 2021-2022, the crime rate in Greater Manchester was 126.7 crimes per 1,000 of the population, compared to an average of 89.3 crimes per 1,000 in England and Wales. 

Unfortunately, some tenants may not like the prospect of living in a big city where the crime rate is a little higher than average, and this is something you will have to bear in mind as a landlord. 

Letting agents are not cheap these days

Some things have gone up in price in recent times, and the rental sector has not been immune to this. Letting agents can sometimes charge landlords up to 15% of monthly rent, which will take a chunk of your rental yields.

Competition can drive down rental prices in student areas

If you decide to be a student landlord in Manchester, you will want your investment to be profitable and worthwhile financially. Manchester is home to around 90,000 students who are taken in by lower rental prices. One disadvantage of being a landlord in a popular student area is that the competition can lower your rental fees.

Whether you choose to rent your property to students or professionals, it is important to protect yourself with landlord insurance. This will cover you in the event of damage, theft, loss of rent and more.

CIA offer specialist policies for different tenant and property types including HMO insurance, landlord insurance for professional tenants and student tenants. 

Get a quote in a few minutes today for reliable insurance you can trust.

Methodology 

Our research focussed on using data to express whether Manchester is indeed a landlord’s paradise. We used local and national data on rental properties from the Office of National Statistics to get figures on average rental prices for different size properties in Manchester and the North West region as well as the England average. 

We also used hamuch.com to give us a specific example of how much on average it costs to get an electrician to change a plug socket in Manchester. The aim here was to give a snapshot of maintenance costs for landlords in Manchester.

Sources 

https://www.hamuch.com/rates/electrician/manchester 

https://lginform.local.gov.uk/dataAndReports/ 

https://www.ons.gov.uk/peoplepopulationandcommunity/housing/datasets/privaterentalmarketsummarystatisticsinengland 

https://www.plumplot.co.uk/Manchester-salary-and-unemployment.html 

https://www.statista.com/statistics/1289595/crime-rate-in-manchester/