Which one should you pick for your next investment? Here, Mark Burns, Director of Pure Investor, specialists in property investment in Manchester and beyond, shares his expertise on these trending locations.
When it comes to investing in property, it is well known that you need to head to the North if you want to get more bang for your buck.
The Northern Powerhouse has proved to be a massive draw for businesses, students and young professionals, which means that whilst house prices have remained low, rental yields and demand is healthy, and this has proved to be very attractive to investors who before now have rarely looked beyond London.
The two most popular cities in this part of the country have been Manchester and Liverpool, so which one should you pick for your next investment? Here, Mark Burns, Director of Pure Investor, specialists in property investment in Manchester and beyond, shares his expertise on these trending locations.
Property prices
The property market has been through a few changes in recent years, but average prices have continued to be affordable in both Manchester and Liverpool, although Liverpool does tend to be fractionally cheaper at around £180,700, less than half the price of the average house in the south of England, whilst Manchester prices sit at a still very reasonable average of £298,281.
This means that investing in property in both areas can be achievable and it often opens up a much wider range of possibilities in terms of the types of property that are available.
As an investor you are likely to want to see the price of your asset rise over the next few years, and this certainly seems as though it will be the case. In Manchester, it is predicted that property prices will increase by 19.35 between 2023 and 2027 whilst Liverpool also seems set to enjoy some significant growth.
Rental yields
Rental property is in extremely high demand in both cities due to the vast numbers of people that are now being attracted to the area. In Manchester, most areas offer a gross yield of 4-5% with some areas peaking at 9%, whilst in Liverpool can boast a 6% average rental yield which creeps up to 7.8% in the Anfield area.
Due to the high demand, most landlords are not struggling to find tenants to fill their properties and so rental yields remain consistent.
Student life
Both Manchester and Liverpool have proved to be extremely popular with students, and Manchester has one of the largest student populations in the whole of Europe.
Manchester is home to The University of Manchester, The University of Salford, The University of Bolton, the Royal Northern College of Music and the Manchester Metropolitan University, whilst Liverpool has The University of Liverpool, Liverpool John Moores University and the Liverpool Hope University.
This means that there are often more students than there are beds in each, and so the student rental market is very active. There are opportunities to rent out traditional housing to a number of different students, or to invest in purpose built and fully managed student accommodation.
Culture
Manchester and Liverpool are both well regarded for their cultural and sporting heritage, and this has become a huge attraction where both are concerned. In 2008, Liverpool was named the European Capital of Culture as its roots have grown from being the home of The Beatles to being a centre for many of the arts.
In Manchester, the music and nightlife is also seen as iconic, and there are two Premier League football clubs that can boast recent Champions League glory.
Regeneration
For a long time, the cities in the North were forgotten industrial centres which began to decline when the manufacturing industry came to an end.
However, the last few decades have seen huge amounts of investment being made into the North, and both cities have experienced huge levels of regeneration. For both, old mills are being converted into luxury apartments and huge international businesses are setting up home here to access the many young professionals in the area and the more affordable rates.
In Manchester, the development of Media City in Salford has proved to be very appealing. This is now home to both the BBC and ITV and has become an important centre for many different forms of the arts.
Tourist centres
Liverpool and Manchester are not just places that people want to live or invest in, but somewhere that sees thousands of tourists visit from all over the UK and the world. Liverpool not only has the Royal Albert Dock and the famous Three Graces by the Pier Head but also incredible arts and culture attractions such as the Tate Liverpool, Liverpool Philharmonic Hall and the Museum of Liverpool.
In turn, Manchester is the location of the Imperial War Museum North, the John Rylands Library and the Museum of Science and Industry, whilst many other tourists will want to pay a visit to Manchester Cathedral or the Old Trafford football ground.
Transport links
Manchester has proved to be popular as the M60 and M62 motorways help to link it to much of the rest of the North of England whilst Manchester Piccadilly station has connections to London, the North and Wales. Despite some changes in plans, the proposed HS2 line will also reach Manchester at some point in the future, although it may take longer than originally planned.
Liverpool is also set to benefit from the HS2 connections and is also in touch with the rest of the north of England through the M62 motorway.
These healthy transport links have proved to be very important in bringing new businesses to the area, and encouraging people to settle in the area knowing that they are still in easy reach of many other important towns and cities both for work and for family connections.
As an investor, it is not only important to find a location that offers a great deal now, but one that will pay dividends in the future as well, and both Liverpool and Manchester can offer this.
They have seen tremendous growth over the last few years and are still enjoying a revival in both their economies and their lifestyles that shows no signs of slowing down for some time to come, making them both a very attractive investment prospect.
