Head of Content
Mortgage Advisor & Director
Manchester is one of the most popular places in the UK to live, study and work, which makes it a prime buy-to-let hotspot. Here, you'll learn all you need to know about getting a buy-to-let mortgage there, including rental yields and more.
Is Manchester a good place to get a buy-to-let mortgage?
Yes. The main reason this is true is because rental yields are healthy in Manchester at the time of writing (December 2024). The average rental gross rental yield in the city is 6.53%, which is above the national average and more favourable than London. This is according to the most recent data from Zoopla.
According to the the Office for National Statistics, the average price of a property in Manchester is £251,000, which means you would need a deposit of around £50,200 to get approved for a buy-to-let mortgage there, although this will obviously vary based on purchase price.
Attractive rental yields and property prices are not the only reason to take out a buy-to-let mortgage in Manchester. Here are some of the other advantages for landlords:
- Property values on the rise: HM Land Registry data suggests average property prices in Manchester have risen by 40% since 2015, with further growth forecast.
- Regeneration and investment: The north west city continues to benefit from regeneration projects and substantial investment, particularly in the city centre around Piccadilly Gardens, Victoria Station, NOMA and the Northern Quarter.
- A thriving student population: Data from investment agency MIDAS indicates that there are over 100,000 students attending Manchester’s five universities, many of whom will need rental accommodation. Furthermore, these universities produce 36,000 graduates each year, another key demographic with housing needs.
- Rental growth: The average rental payments in Manchester are rising at a higher pace than the national average of 14%. A report from JLL suugests they are expected to reach 21.6% by 2027.
Where are the best areas to invest in?
The latest research from PropertyData suggests that the M14 postcode - which includes the student housing hotspot of Fallowfield and the famous Curry Mile - is currently leading the way on rental yields at 12.4%. The average house price there is £240,521.
Other popular areas with strong rental yields include Openshaw in the M11 district, the M6 area and Debdale in M40, all of which have rental yields of 7% or more.
The table below highlights some of the best areas for a buy-to-let mortgage in Manchester:
|
Postcode |
Average Rental Yield |
Average Property Price |
|
M14 |
12.4% |
£240,521 |
|
M13 |
6.3% |
£282,133 |
|
M6 |
7.4% |
£234,146 |
|
M9 |
6.9% |
£192,165 |
|
M5 |
6.1% |
£212,499 |
|
M3 |
6.1% |
£252,968 |
|
M11 |
7.1% |
£210,923 |
|
M40 |
7.0% |
£224,254 |
|
M50 |
6.5% |
£231,331 |
|
M1 |
5.4% |
£281,515 |
Source: PropertyData
How to get a buy-to-let mortgage in Manchester
Now that you have done some research into potential locations for your investment property, you can compare buy-to-let mortgage rates and deals for free on Teito.
You can source a mortgage in real time, and as part of the service, you will be offered a no-obligation chat with a broker who specialises in the Manchester buy-to-let market.
We have brokers on our team who offer face-to-face consultations in this part of the country, for borrowers with this preference, and they often have access to exclusive deals. Choose one of the options below to get started:
Find a better buy-to-let mortgage on Teito
Popular property types
Student houses and houses of multiple occupation (HMOs) are popular in areas including Fallowfield, Hulme, Rusholme, Withington and the city centre. In fact, figures recently released by Simply Business suggest that Manchester is the fourth most popular city in the UK to get a HMO mortgage in, behind only London, Birmingham and Bristol.
Purpose-built student accommodation (PBSA) is also popular and new developments are expected to spring up in the near future, particularly in the city centre.
City centre apartments, in general, are another property type in demand and the rental yields on offer for them can vary depending on how many bedrooms the property has.
Is Manchester a good city for portfolio landlords?
Manchester is one of the most popular locations in the UK for portfolio landlords, which is unsurprising given that they usually focus on big cities. Recent figures from Simply Business suggest that only London is outpacing the city in terms of the number of portfolio landlords investing there, with Birmingham, Nottingham and Liverpool also in the top five.
Read our guide to mortgages for portfolio landlords for more information.
Why choose Teito for your buy-to-let mortgage needs?
Through Teito you can compare the latest buy-to-let mortgage rates and deals for free, and connect with a broker who specialises in the Manchester buy-to-let market.
Here are just some of the reasons Manchester landlords choose our service:
- You can access buy-to-let mortgage rates in seconds
- Our brokers have experience in the Manchester market
- We are 5-star rated on leading review websites
- You can secure your agreement in principle in minutes
Ready to compare rates and take advantage of a free, no-obligation chat with a broker who specialises in Manchester buy-to-let mortgages? Get started here.
FAQs
Yes. As part of our service, your broker can refer you to a solicitor we recommend, someone with experience with Manchester buy-to-let mortgages if that is your preference.
Choosing an Adviser
Selecting a qualified and experienced mortgage adviser is of great importance. To choose a suitable adviser, evaluate their qualifications, experience, and reputation, and ensure they are regulated by the Financial Conduct Authority (FCA).
Read reviews from previous clients and make sure they provide a clear explanation of the products and services they offer, as well as the fees and charges associated with them.