Manchester Off Plan Apartments – A Step-by-Step Guide
Understanding Off-Plan Property: What It Means and Why It’s Popular
There are a variety of different ways that investors can choose to make their first foray into property investment; or indeed to expand their existing portfolio into exciting new territory. One such option is working with off-plan property – an increasingly popular choice for those looking to invest in a development. But what it is, how does it work, and just why are so many working with this investment type? Here, we explain everything.
What is Off-Plan Property?
When property is ‘off-plan’, it means that the physical development has not yet been completed. This may mean that either the development is still in the planning stages, or that construction is already underway but not yet finished. The investor buys the property before the building has been completed, usually through the payment of a reservation fee to secure the unit of property of their choice.
Buyers are given an expected completion date for the physical development of the site, but this is not necessarily a legally-binding guarantee of the works being finished. Where in conventional property investment, the investor would be able to visit and tour the property upfront ahead of any money being paid, in the case of off-plan property, they will not yet be able to view the completed building.
This may be somewhat of a risk for the investor, as they may not know at what point they can start earning back an ROI (Return On Investment). As such, usually the mortgage repayments (or, if applicable, one-off cash payment covering the full property value) are made once the property has been completed, with the initial ‘reservation fee’ discounted from the total amount.
Who Buys Off-Plan Properties?
While there is no hard-and-fast rule about who may and may not invest in off-plan property, generally speaking, the type of buyer who chooses to invest in this property type are investors; often seasoned ones. While there is nothing stopping first-time buyers choosing to buy an off-plan home for themselves, this is quite rare unless they’re looking to invest in a new-build property under a shared ownership scheme (which tends to make such homes considerably more affordable and accessible).
Most commonly, off-plan properties are purchased by investors looking to buy-to-let.
Why Investors Choose Off-Plan Property in Manchester
As with regular property investment, off-plan investment Manchester-wise is seeing a vast increase in popularity for several reasons. As a hotspot for property investment of all types, it’s no surprise to those in the know, that Manchester is also attracting a myriad of off-plan property investors who haven’t yet explored property in the area. Manchester’s wealth of regeneration and redevelopment is currently presenting more opportunities for investing off-plan than ever, and when compared to other cities and towns in the UK, it’s clear to see the benefits.
Capital appreciation potential
The nature of off-plan property is that it’s invested in before it’s finished – and this means that it can actually have increased in value by the time it’s built. This presents investors with the unique opportunity of securing an investment without paying full market value price; in essence, gaining on their investment before they’ve even started to pay it back.
The potential for capital appreciation on off-plan property is biggest in areas of rapid regeneration. Indeed Manchester is already predicted to grow rapidly under analyst’s local development forecasts, and prime locations such as around MediaCityUK, Salford Quays and close to the city centre, are all only likely to increase in value in the future.
Below-market-value deals
Manchester also presents the rare opportunity for investors to buy property at prices that are below-market-value. Several new developments across Greater Manchester are being priced lower than their actual market value to encourage investors to purchase before they are completed and then offered out to the general public.
Already well known for its affordable property prices, these deals provide potential for investors who aren’t afraid of investing off-plan and are confident of the returns to be made. Many developments offer just a handful of below-market-value deals for the first few investors, with the price increasing with demand thereafter.
Location advantages and city regeneration
Manchester and the whole county is under great demand for both rental and sale property as its vast regeneration attracts hordes of new people. New and refreshed developments have seen the city become the new destination for lots of professional and educational opportunities, as well as the associated family connections moving with them.
What’s more, the existing infrastructure of Manchester city centre and its impressive public transport links mean that residents may travel easily throughout the area and further afield; meaning developments all over the region can result in decent demand and yield, and not just those in a set ‘city centre’ location. The unique variances in property types and areas are just another attraction for those choosing to make the move.
Competitive rental yields
Rental yields are calculated by working out the purchase price of the property and the rent that will be charged on it. This means that the lower the purchase price and the higher the rental cost, the better the rental income an investor can expect to make.
With Manchester still being considered an affordable place to purchase property (no mean feat with such vast swathes of exciting redevelopment happening!), and demand continuing to increase, the city boasts some of the highest rental yields in the country. Key areas for this include the prime redevelopment hotspots and in particular, flats and apartments that offer the authentic ‘city living’ experience for professionals.
To ensure the most accurate results, it is always recommended to use a digital Rental Yield Calculator. Rental yield can be calculated using either the property’s current value or its purchase costs.
Common Investor Goals with Off-Plan Properties
Of course, all investors have their own goals for their properties and ROI, but most commonly, off-plan properties are bought with the following in mind:
Buy-to-let
The potential discounts, flexible payment plans and access to modern units make off-plan property investments extremely attractive for buy-to-let homes. The modern amenities and designs in new builds can attract higher-quality tenants and potentially reduce initial maintenance costs.
Capital growth through ‘flipping’
‘Flipping’ refers to the quick sale of an investment property once it has been purchased; giving ROI quickly. If a good purchase price can be secured and price increases during the build phase are considered and catered for, the potential for capital appreciation during the construction is high.
Diversification of property portfolios
Off-plan properties offer access to different markets, emerging locations and varying property types, making them the ideal investment for those looking to diversify their existing property portfolio.
Financing Basics: How to Buy Off-Plan in Manchester
As mentioned previously, buying off-plan property varies from that of buying conventional existing buildings.
The Typical Payment Structure for Off-Plan Apartments
Typically, the payment for off-plan property is made up of three parts as follows:
- Reservation fee
- Exchange deposit
- Completion balance
The reservation fee is taken upon agreement of which unit the investor would like. This fee secures the unit for the investor and ensures that no one else is able to purchase it (‘reserving’ it). Alongside the payment of the reservation fee, a contract is signed outlining the agreed total price for the property, the schedule for deposit payment and the stipulation of a timeframe within which contracts must be exchanged. As the property has not yet been completed construction-wise, this timeframe may be a set date or be a set timeframe upon the dispatch of draft contracts and all supporting legal documents.
As the reservation fee holds the property for the investor, it is at this time that they should engage with their solicitor and begin pre-contract legal procedures. This fee is usually non-refundable, although the investor may withdraw from the deal at this point without attracting further cost. As ever, all parties are only legally bound upon the exchange of contracts.
An exchange deposit is paid, and typically amounts to between 10-20% of the total purchase price (minus the reservation fee), although this can vary. If the investor chooses to withdraw once the deposit has been paid, they will lose this amount. For off-plan properties being purchased for buy-to-let purposes, this deposit is likely to need to be around 25%+ (dependent on lender requirements).
The remaining balance of the property is to be paid by the investor once the off-plan property has been completed. This can be paid in two ways:
- A mortgage
- A one-off cash payment
Most commonly, investors work with a mortgage; and in the case of an off-plan property being used for buy-to-let purposes, a specific buy-to-let mortgage. This funding is secured by a bank or specialist lender and allows a set amount to be borrowed dependent on the anticipated rental income. In most cases, lenders require the projected rental income of a property to be between 25-45% higher than the monthly mortgage repayment
If the investor has the total property price balance to hand, they may choose to pay a one-off cash fee and take immediate full ownership of the home.
As with standard property purchases, a completion date will be set. For off-plan properties, this may be up to two years’ after the build has been finished. Once funds have been transferred to the seller’s solicitor, ownership may be transferred, and keys handed over.
This is linked to tracking the performance of your rental unit, which is essential for informed decision-making and optimising profitability. Utilising tools like rental management software or spreadsheets to monitor expenses, rental income, and tenant turnover rates can provide valuable insights into the property’s financial health. Regularly reviewing these metrics allows investors to identify areas for improvement, such as optimising rental rates or addressing recurring maintenance issues, to maximise returns on investment.
Typical Timeline from Reservation to Completion for Off-Plan Property
There is no ‘one-size-fits-all’ approach to any property investment, as projects and developers vary. However, investors can consider the following to be a typical projected timeline:
| Stage | Duration | What Happens |
| Reservation | 1–2 weeks | Pay a reservation fee (typically £1,000–£5,000) to secure the unit |
| Exchange of Contracts | 2–4 weeks post-reservation | Pay the exchange deposit (10–30%) and sign legal documents |
| Construction Period | 12–36 months | No payments due unless under a stage payment plan |
| Completion | On build completion | Final payment is made (via mortgage or cash), keys handed over |
Key Timeline Considerations
Investors should stay mindful of the fact that the purchase of off-plan property does vary somewhat to that of ‘conventional’ investment, and so they must consider:
Mortgage applications should be timed carefully
Lenders typically only issue formal offers 3–6 months before completion. This means that if there are delays in construction, a mortgage offer may expire before it can be utilised.
Developers may delay completion due to supply chain or planning issues.
Always factor this in with buffer time on financial arrangements. Investors in off-plan property should have sufficient cash pipelines available and not be reliant on a set date for ROI.
Investors should stay in touch with developer progress updates
Communication is key. Aligning legal and financing timelines can only be done accordingly if all parties are open and honest with their predictions and expectations.
Key Financial Considerations before you Invest in Off-Plan Property
Being financially secure enough to invest in traditional property investments does not necessarily equate to the ability to invest in off-plan property. As such, investors should consider the following before they decide if and how to buy off-plan:
Currency implications for overseas buyers
If a buyer who is not resident or does not hold finances resident in the UK is looking to invest in off-plan property in the country, they should be aware of the risks of currency fluctuations during the sometimes lengthy completion period. With off-plan property sometimes taking years to finalise compared to conventional property investments, there is the possibility that currency changes could make things considerably more expensive than initially anticipated
Legal and due diligence costs
Again, with the purchase process taking longer than conventional property investments, it is wise for investors to sign a contract with set legal and due diligence costs upon the payment of their reservation fee to avoid hidden costs and surprises later on.
Main Financing Options for Off-Plan Property in Manchester
There are a variety of ways investors can choose to finance their off-plan property, including:
Cash Purchase: Fast and Simple but Capital Intensive
Those who have the financial resources may purchase using cash as a one-off payment – a method that certainly buys up some negotiating power. However, this does tie up capital and can be an opportunity cost.
Buy-to-Let Mortgages on Completion
The remaining balance after the reservation fee and deposit have been made is usually paid using a specific buy-to-let mortgage. These are routinely offered by specialist lenders to property investors but do require a high deposit and rental yields must be factored in.
Developer Payment Plans & Staged Payments
Some developers offer payment plans and staged payments for purchases of their off-plan property, to encourage investment. A sample payment schedule will be supplied and contracts signed. However, those using payment plans should be aware of the risks that if delays happen during the build process, payments may need to be made ahead of any rental income being generated.
Bridging Loans: Speed, Flexibility & Flipping
Bridging loans are a short-term financing option that cover the gap between buying an off-plan property and securing a long-term mortgage. These are ideal for investors who intend to refinance upon completion, but are usually only available to property investors with a well-performing existing portfolio and good credit rating.
Releasing Equity from Existing Property
Investors with equity in existing properties may choose to unlock the value within these and leverage it to finance a new purchase. This allows for equity access without having to sell any current assets, and provides flexible repayment options using the income from other properties to make payments
Forshaw’s Latest Development – VIVERE Residences – Manchester
Estimated Completion Date 2027
Rental Yields: What to Expect from Manchester Off-Plan Apartments
As of early 2025, rental yields in central Manchester range between 5.5% and 7%, depending on location, property type, and tenant demographic. As off-plan properties are new-build developments, they tend to be situated in city centre regeneration locations and student hotspots, which often veer toward the higher end of the rental yield market.
There are several considerations to be made for the rental yields in off-plan property investments, however. These include:
- Securing a unit below at a discount to full market value will boost the yield once the rents align with completed property values
- Tenants are usually willing to pay higher rents for new-build modern amenities
- Properties near regeneration zones or transport links often see both rent and capital value increase over time
Area Development: Yield Example Breakdown
| Property type | Price (off-plan) | Monthly rent (est.) | Gross yield |
| 1-bed in city centre | £230,000 | £1,250 | 6.5% |
| Studio in Salford Quays | £180,000 | £950 | 6.3% |
| 2-bed near universities | £270,000 | £1,450 | 6.4% |
Risks & Mistakes to Avoid When Financing Off-Plan Investments
As with all investments, off-plan property is not without a degree of risk. The following are the most common mistakes made by new investors, so consider these learnings for off-plan property tips!
- Overstretching finances – ignoring hidden or rising costs, not being prepared for changes in lending criteria over time.
- Failing to stress-test interest rate – misunderstanding repayments
- Not preparing for delays in construction – mis-planning and finding impact on mortgage offers and/or bridging loan terms.
- Ignoring developer credibility and project history – not conducting proper due diligence to ensure that the investment is a wise one.
For properties in development or completed please see the latest information on Forshaws website.
Contact Us
Talk to our buy-to-let experts today if you’re ready to find out more about investing in buy-to-let properties in Manchester city centre. You can connect with us by giving us a call on +44 (0)1204 299 229, by sending us an email or by completing the enquiry form on our site.
Contact Form
"*" indicates required fields
