Rental properties in Manchester


saying that, house price multipliers in northern cities like Manchester are still in a better position than those pretty much anywhere in Ireland.
 
agreed...but almost any developed market looks better value than Ireland.

by the way recent BTL mortgage figures for the UK have shown a renewed surge in BTL borrowing

good luck
 
There was an article on the front page of the FT today talking about the huge rise of buy to let mortgages in the first half of this year. Inside there was another article saying that many investors are piling in to the party just as the music is about to stop. It was similar in tone to much on this site regarding the Irish market, basically saying that rental rates haven't risen with house prices, new landlords assuming 12 months rental income, and ignoring vacant periods and repair expenses, and investors using various tricks to get around bank requirements for deposit, proof of potential rental income etc

They said the yields had become very low, with the exception of central London.
 
My opinion is that it's not the right time to enter the BTL market in the UK.

I recently had a quick look at a 2 bed flat in the Home Counties. £170K purchase price, costs would be approx £2.5K.

The yield? A whopping 4.06% and thats with no voids. With a 1 month a year void it drops to an even lower 3.72%.

Me keeping my deposit exactly where it is.
 
There's nothing attractive about BTL in the UK currently. As in Ireland, there are massive national and local building programmes on top of a market where rented properties (outside of Central London) have long voids between tenants. As an indicator where I live (90 minute drive from Central London) several of the massive newbuild developments are being massively 'pushed' in the local press to FTB's on the basis of "Only £99 pounds to move in".......plus the developers often pay transaction costs and legal fees (and still there's nobody rushing to buy. Judge for yourself!
 
Ron J said:
Can anyone advise on the stength of the buy to let market in Manchester UK. What areas of the city are best ?
Click to expand...

Manchester like most of the UK cities are becoking overrun with apartments. It shows no signs of slowing down in terms of construction. An area which I may look at is Portsmouth. I havtn invested in the UK now for 2 years but Gosport Millenium Bridge there are apartments looking out to water for 129,950 GBP deposit and stamp paid carpets etc. I may head there to take a look and gauge the rental market. Crest are building thede apartments.
 

The Portsmouth deal you quoted sounds relatively good, however, Portsmouth is at the moment a very unattractive location and with the exception of the English Partnerships lead developments there is a pretty dim view of the city. There is net emigration of the youngest and brightest to contend with also. Its not seen as a cultural centre and many are afraid to go out in the city centre for fear of getting done in by the sailors.

With regards your comments on Manchester, I find them relatively uninformed and sweepingly generalised. There is possibly an oversupply of apartments in Manchester City Centre - definitely not a massive oversupply imo. Plus that is just the city centre - there are 10 million people within an hours drive of Manchester - thats a big market and to say that a market is saturated because of one small section of the market is folly. Manchester has recently got the green light for an extension to the tram/luas system, the M60 orbital motorway is now fully complete, the BBC is moving a large proportion of it operations to Manchester and so is the Bank of New York.

Savvy investors are looking to the southern suburbs that will benefit most from these changes and those who are a little less risk averse are looking to the eastern suburbs of Stalybrigde, Ashton etc.
 


If you want to invest in massive "new town" type projects such as that then you are going to find it difficult to have a usp when it comes to renting or selling
 
for my money i would want a UK property to produce a gross yield of at least 8%/9% before committing any cash.

by the way, i have heard that yields on homes of multiple occupancy are better (HMOs in the industry) than flats in the UK at present. I have a freind looking at 4/5 bedroom houses in Hull with gross yields in excess of 7.5%. The rub is that you need to source the property yourself and then get a good builder to increase the number of bedrooms without stuffing your potential renters into box rooms.
 


Portsmouth was something i saw an ad in a paper for, i havent researchhed it. Seemed cheap which was my initial thought. I persoanlly dont look to the UK at all for investment anyway for the last 3 years i have built a portfolio overseas, it gives more scope. My comments on Manchester are not uninformed nor generalised. It doesnt take a rocket scientist to see what is happening to city centres, city centres being the areas i am talking about not suburbs. Any how the yields from back in the day in the UK are gone. Just my opinion.
 
Long term there will be value in northern UK cities however at the moment anyone buying say 3/4 properties is getting a further 10% - 15% plus off single purchaser price so thats going to be a struggle.

Down south the city has boomed leading to good London market - this has bailed out Brown who would otherwise have to increase taxes.

It is unwise to judge risk / return based on residental yields in Ireland - virtually every other asset class globally offers better.
 

i wouldnt disagree with that
 
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