Since the BBC decided to relocate to Salford, Manchester, placing MediaCityUK on the map, there has been steadily growing demand for property in the area. This together with literally hundreds of millions of pounds of redevelopment funding has changed the region, just outside Manchester city centre, to one which is unrecognisable from 20 years ago. It is difficult to know where to start with Salford and which attractions/prospects to focus on!
Buoyant property market
Manchester city centre had a population of just over 6000 people in 2002 and this is expected increased tenfold to 60,000 by 2027. The area has become the economic hub of the North West, a leading financial market and offers a retail experience few other cities can match. It is fair to say that Manchester has been regenerated beyond recognition over the last 40 years with a very strong employment market. However, there is a very interesting mix of potential tenants.
Student accommodation
Manchester boasts four extremely successful universities in the shape of:
• Manchester University
• University of Manchester Institute of Science and Technology
• Manchester Metropolitan University
• Salford University
All told these universities attract over 85,000 students to the area and aside from an extremely active and vibrant social scene this has created untold demand for student rental accommodation.
Salford – Manchester
While Manchester city centre tends to grab the headlines, many people are totally unaware of how close to the city centre Salford actually is. It is the home of Manchester United’s Old Trafford football ground and has attracted hundreds of millions of pounds of regeneration investment over the years, creating a booming employment market. As a consequence, we have seen an array of new housing developments catering for a wide range of tenants.
Some property investors have been focusing on student HMOs but there is growing demand from young professionals seeking high spec one and two-bedroom apartments just outside of Manchester city centre. Prices in some of the new developments start at £162,000 and offer gross rental yields up to 6.19%.
Local infrastructure
As we touched on above, Manchester city centre is literally five minutes from Salford with an array of public transport at your doorstep. The Manchester tram system is an integral part of the city and its suburbs, Manchester hosts the largest UK airport outside of London and the eventual building of the HS2 and HS3 rail networks will greatly benefit the region. Then we have the traditional rail network which incorporates Manchester Victoria and Manchester Piccadilly stations. As and when HS2 and HS3 are completed this will cut the journey time to London down to just one hour.
Nightlife
Even before the recent regeneration of Manchester city centre and its surrounding suburbs, the area had a reputation for a very active social scene. We have the Manchester Opera House, O2 Arena, Manchester United football ground not to mention local rivals Manchester City. There are numerous bars and restaurants in the city centre, catering to all tastes and budgets, and you will never be short of options for a night out in the area.
The future
Salford is literally on the edge of Manchester city centre and offers a very interesting opportunity for property investors looking for rental accommodation. Gross rental yields in excess of 6% are available on some of the new developments in the Salford region which is extremely attractive in the current economic climate. A very strong local employment market and a well-developed education sector have created demand for rental property amongst both young professionals and students. As a consequence, there are many new property developments offering significant choice to long-term property investors.