Rental properties in Manchester

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Ron J

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Can anyone advise on the stength of the buy to let market in Manchester UK. What areas of the city are best ?
 
bearishbull said:
According to land registry figures prices of apartments are falling in manchester ,i also hear rental yields arent great and if you borrow in sterling rates are much higher than here,proceed with caution.
http://news.bbc.co.uk/1/shared/spl/hi/in_depth/uk_house_prices/regions/html/region2.stm?f
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Average rate per square foot have actually gone up, its the size of the apartments that have come down in Manchester and therefore lowering the end valued to ensure affordability.

Many investor are understandably jittery about the City Centre market due to fears over possible oversupply.

There is still great yields to be hard in the university areas such as Fallowfield, Rusholme and Withingon and in professional areas such as Chorlton and Didsbury
 
Make sure you know your letting agent. it is difficult to get a good one in manchester that will actually look after it. also do alot of research into management/letting fees. esspecially tenant finders fees which now in manchester seem to run at 1 months rent and 2months in some cases. if there is a call out / problem make sure there is someone you can send out of your letting agent who wont rob you and the old 20% rule you need to be careful of... (few quid to letting agent from trades)
I am shocked how many people buy property without adequately researching it. sit down and find out the proper market rent (easy to do ..rightmove etc) then work out all costs ( ring letting agents) factor in vacant period, some repairs, and management fees ..typically 700-800 pounds, bank account charges, money transfers , at least an annual trip, etc. i would be very surprised if your yield was over 3%
 
there has been a recent spate of negative inflation data in the UK and some house price surveys are showing an acceleration in price inflation in the past few months so I would factor in another 0.25% rate increase at least.
 
money man said:
Make sure you know your letting agent. it is difficult to get a good one in manchester that will actually look after it. also do alot of research into management/letting fees. esspecially tenant finders fees which now in manchester seem to run at 1 months rent and 2months in some cases. if there is a call out / problem make sure there is someone you can send out of your letting agent who wont rob you and the old 20% rule you need to be careful of... (few quid to letting agent from trades)
I am shocked how many people buy property without adequately researching it. sit down and find out the proper market rent (easy to do ..rightmove etc) then work out all costs ( ring letting agents) factor in vacant period, some repairs, and management fees ..typically 700-800 pounds, bank account charges, money transfers , at least an annual trip, etc. i would be very surprised if your yield was over 3%
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I agree, a lot of people think that you wont have letting voids or that repairs wont cost that much etc and dont factor that in when considering a purchase.

Actually imo now is a great time to buying in suburban Manchester. The metrolink (manchesters Luas) has just been given the green light for an extension last week and values havent cottoned on to it yet.

Anything to the south of the city centre within the M60 motorway is good for capital growth and relatively easy to let and if you can get somewhere near a new metro stop even better.

http://www.manchestereveningnews.co.uk/news/s/217/21
 
the latest figures havent come out for manchester for 2nd quarter, the land registry data indicates apartments/flats rose 1.6% in the normally most busy part of year. i wouldnt be suprised if theres close to an excess in city centre apartments,the gross rental yields in like of hacienda building are only around 5% with interest rates at 4.5% and councill tax etc eating into your yield. Manchester market as a whole including all property types fell 1.6% in first quarter and nationwide building society recently said in june house prices fell in uk as a whole by 1.2%. Bank of England may raise rates soon and this could further affect market.
 
bearishbull said:
the latest figures havent come out for manchester for 2nd quarter, the land registry data indicates apartments/flats rose 1.6% in the normally most busy part of year. i wouldnt be suprised if theres close to an excess in city centre apartments,the gross rental yields in like of hacienda building are only around 5% with interest rates at 4.5% and councill tax etc eating into your yield. Manchester market as a whole including all property types fell 1.6% in first quarter and nationwide building society recently said in june house prices fell in uk as a whole by 1.2%. Bank of England may raise rates soon and this could further affect market.
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Anyone who bought in the Hacienda scheme is a mug, probably the most over valued scheme in Mancester.

Like I say southern suburbs inside the M60 are the safest bet. Such as Rusholme, Firswood, Old Trafford, Withington, Whalley Range, Chorlton, West Didsbury, Didsbury and ever Burnage

http://www.southmanchesterreporter.co.uk/news/s/215/
 
Rental: You can expect net rental yields of 4% in core city centre apartment market (net net, after lettings & management fees, service charges and ground rent).

Buying: You could pay up to £400 per sq ft in new city centre schemes. But there are deals to be had, such as fire sales of apartment units in developments, which are sold quickly at the end of the cycle when the developer wants to move onto another development; have recently seen units sold at prices at £240 per sq ft for large units in core.
 
Hi propman, could you tell me how much one of these apartments would be in the city centre (preferably the one you used to work out the 4% yield) and also how much the rent would be.( realistic)
 
average rate per sq ft in the city centre is crica £300. Where is £400? Beetham? Lumiere?

You can obtain bargains in the Gay Village, Castlefield and Great Ancoats Street.

But as I say south central suburbs are showing the great return on income and opportunity for capital growth
 
money man said:
Hi propman, could you tell me how much one of these apartments would be in the city centre (preferably the one you used to work out the 4% yield) and also how much the rent would be.( realistic)
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if you are looking for comps go to rightmove.co.uk and search for M1, M2 and M3
 
Moneyman

Will have to dig out details at home for you but from memory:

Purchase Price: £198,400 (including car park)

Rent: £850 per month = £10,200 per annum
Minus: Ground rent £200 per annum, service charge £1,250, management @ 8%* + 17.5% VAT = £958 per annum.

Net rent of £7,792/purchase price £198,400 = 3.92% net yield.

* I appreciate most agents charge 10% but there are agents who will do it for less.
 
Moneyman

Great Northern Quarter is £400 for small one bed, coming down to apporx £360 for two bed.

Propman
 
Propman said:
Moneyman

Great Northern Quarter is £400 for small one bed, coming down to apporx £360 for two bed.

Propman
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do you mean Great Northern Tower? Northern Quarter in in the opposite end of Manchester City
 
Propman said:
Moneyman

Will have to dig out details at home for you but from memory:

Purchase Price: £198,400 (including car park)

Rent: £850 per month = £10,200 per annum
Minus: Ground rent £200 per annum, service charge £1,250, management @ 8%* + 17.5% VAT = £958 per annum.

Net rent of £7,792/purchase price £198,400 = 3.92% net yield.

* I appreciate most agents charge 10% but there are agents who will do it for less.
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No voids?
 
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