Editor's note: This brief was summarised by The Property AI Newsroom from a report by PropertyWire. Read the original article for full details.
Manchester Overtakes London as Top Buy-to-Let Location
Manchester has surpassed London as the most sought-after location for buy-to-let investors, according to new data from The Property Buying Company. Analysis of 295 investors’ preferences shows that 23% are targeting property in Manchester, compared to 18% focusing on the capital.
The findings indicate a shift in investor sentiment towards regional markets, with higher yields cited as a key factor. For letting agents and inventory clerks, this trend highlights growing demand for rental properties in Manchester and other northern cities.
Regional Investment Patterns
The data reveals that Liverpool ranks third for investor interest at 8%, followed by Birmingham at 7%. Luton and Nottingham each attract 3% of investor attention. The North West remains the most popular region in England and Wales, with 18% of investors stating it as their preferred location.
Manchester’s appeal appears to be driven by rental yields. The city’s average rents increased by 3% over the past year to £1,349 per month, slightly below the national average increase of 3.4%. However, gross rental yields in Manchester stand at 6.6%, compared to London’s 5.1%.
Long-Term Price Performance
Recent data also shows Manchester topped house price growth over the past decade with a 63% increase, while London recorded 7% growth in the same period. Rightmove analysis identified the four fastest-growing local areas as suburbs within Greater Manchester.
The findings come as estate agents shift focus to buyers amid a rebalancing UK property market. Development activity continues in regional cities such as Liverpool, reflecting broader investor confidence in northern markets. The data suggests regional cities are increasingly competing with London for buy-to-let capital, driven by yield differentials and stronger capital growth prospects in areas with lower entry prices.
Source: PropertyWire