5 Reasons To Invest in Student Property in Manchester in 2023/24

As a property investment location, Manchester is in a league of its own.

Offering some of the most affordable property prices and highest return potential out of every major UK city, student property investment in Manchester offers a compelling solution for investors.

According to the latest Land Registry data, the average Manchester property, as of March 2023, is valued at just £231,656.

This is just over £50k below the UK average, and is more affordable than the likes of Leeds, London, Edinburgh, and Brighton.

Crucially for investors, these low property prices lead well to huge return potential.

Using the latest Zoopla rental data, the average gross rental yield in Manchester (without factoring in expenses) is a huge 8.49%.

For comparison, the UK average is 5.11%.

On top of these rental returns, Manchester sits alone for capital growth.

In the last 12 months, Manchester property has increased in value by a solid 5.72%.

Looking back further still, Manchester prices have increased by over 331.94% over the last two decades, according to official Land Registry data – the largest capital growth out of every major UK city.

These returns are incredibly exciting for investors, especially when you factor in future growth.

According to the latest Savills house price predictions, the North West region of England is set to see property prices rise by 20.2% by 2028 – one of the highest growth rates in the UK.

Factoring this growth with the potential to find student investment property in Manchester for below the £100k mark, while also enjoying NET rental yields commonly found upwards of 7%, the city is undoubtedly a smart choice for investors.

If you’re wondering why student property investment in Manchester is popular, these sky-high returns are why.

The central reason behind Manchester’s huge international and domestic reputation as a world-class student city is thanks to its three top-quality universities.

With The University of Manchester, Manchester Metropolitan University, and The University of Salford to choose from, along with 20 universities within one hours drive, Manchester students are spoiled for choice.

Perhaps the most noteworthy is the University of Manchester, which is likely the biggest pull for students.

Here, the University of Manchester was voted in the top 30 universities in the world in 2023 – its highest-ever position!

The quality of Manchester universities is exceptional, with studies finding that 94% of graduates from the University of Manchester and Manchester Metropolitan University go into employment or further education within just six months.

However, while the University of Manchester gets the headlines, Manchester’s other universities are quickly becoming some of the most popular in the UK.

Manchester Metropolitan is hugely popular for vocational courses like business and art and hosts the highest number of undergraduate applications in the UK.

Likewise, The University of Salford is becoming a fantastic option for investors, with strong links to the nearby £1bn MediaCityUK to give students world-class employment opportunities.

Overall, student property investment in Manchester is heavily boosted by Manchester’s undeniably exceptional education sector.

The final major factor behind the huge success potential of student property in Manchester is the appeal of Manchester as a place to live.

When it comes to lifestyle, students are looking for exciting nightlife, things to see and do, and all most importantly at an affordable level.

Excitingly, Manchester supplies all these factors and more.

With a thriving musical scene that produced the likes of Oasis, The Stone Roses, and The Smiths, there are tonnes of fantastic musical venues dotted across the city.

For the more cultural and art-loving students, Manchester also boasts several excellent museums and galleries including the National Football Museum and The Whitworth Art Gallery – with the majority of venues offering free entry.

On the topic of affordability, Manchester is one of the most cost-friendly places for students.

The annual Manchester Student Night Out delivers unique student deals at over 100 shops, with the city famed for its shopping scene with the likes of the famed Trafford Centre.

This affordability is even better for international students, who can shop at many locations tax-free!

Access to all these great places, including the immensely popular student hotspot The Northern Quarter, has never been easier thanks to excellent transport links.

Whether students are travelling to university, a shop, or to a part-time job, Manchester ensures transport links are widely available with frequent buses and an excellent city-wide tram system.

It’s no surprise that Manchester was voted the best UK city to live in according to the Global Liveability Survey.

Currently, there are two popular ways to invest in student property.

1. You can invest in a house of multiple occupation. Or…
2. You can buy purpose-built student accommodation

While we won’t go into massive detail here – you can learn more about how to invest in student property in our guide – the bottom line is that PBSA is likely the best option you can make right now.

A culture change amongst students has meant that more students are looking for premium, high-quality living spaces – something that HMOs, which are typically older properties, cannot provide.

In the last year alone, a report from Savills found that over £7.8bn was spent on PBSA – up by 89% on 2021.

With all current market data pointing to PBSA being the preferred choice for student property investment in Manchester, it’s likely your best bet for netting the highest profits.

If you’re serious about investing in student accommodation in Manchester or Liverpool, RWinvest is the perfect company for you.