The Buy To Let property market has seen a vast number of changes over the last decade alongside changes in government, increasing property prices and a tumultuous market hit by a pandemic. Yet the UK remains a prosperous nation for those looking to invest in Buy To Let property; and the key to such prosperity is all in the location.

Rental demand is continuing to increase nationwide and is expected to remain strong for the foreseeable future. With house prices continuing to soar higher than many salaries, those able to purchase property are dwindling and the demographics of those aged 15-29 (the most likely to rent) is expected to increase by some 6% in the next decade.

The most common types of tenants in the UK now are couples and single occupants, in white collar, clerical or professional work. As of March 2024, the Index of Private Housing Rental Prices rose by its highest increase ever; some 9.2%. Combined, these attractive tenants and financial prospects make for a winning formula for those looking for a Buy To Let property investment.

But where best to purchase a property? Indeed, location can determine profitability, with some areas of the country faring better than others in terms of growth.

Manchester: A Buy To Let Hotspot

Topping many a property hot list, Manchester remains a stable option for Buy To Let investment. The analysts Savills predict property prices to increase up to 29.4% in the next five years, and given the city’s recent transformation, it’ll surprise no one to see Manchester leading the way. In the last 20 years, homes in Manchester have seen the biggest average price rise according to the Land Registry: from £59,348 to £235,437 – a 298% increase!

With the regeneration of the city centre and Salford area continuing to attract professional talent globally, the city has already seen business and employment growth of 84% across a 13-year period; and this is only set to grow further. Manchester remains a thriving locale for property, and is a safe bet for solid ROI and competitive rental yields

The experts in developing buy-to-let properties in Manchester and Salford.

Forshaw Land & Property Group have been developing properties for over 16 years across the UK. Our current pipeline is the development of flagship schemes in Manchester and Salford Quays. These developments set the standard for residential experience and offer a wide range of exclusive amenities for occupiers, including; roof terraces, fully equipped gymnasiums, residents lounges, concierge services and private dining rooms.

For properties in development or completed please see the latest information on Forshaws website.

Birmingham: A City of Opportunity

In the heart of the midlands sits the UK’s second city, Birmingham. Major regeneration projects underway in the city are boosting the area’s appeal to new residents, and with businesses stabilising post-pandemic and the local academic institutions continuing to grade well, tenant demand is growing rapidly.

London: Balancing High Costs with High Demand 

The capital has long presented a large rental market, but the cost of purchasing property in the most expensive city in the country needs to be balanced with the potential returns. Through 2024 yields have remained competitive, with E6 (East Ham) warranting an average of 6%, SE28 (Thamesmead) 5.9%, and SE2 (Abbey Wood) 5.8%. London is truly a prime destination for Buy To Let property investment, and attracts a high number of international buyers. 

Liverpool: A Rising Star for Investors

Liverpool remains a city with affordable housing abound; a stark contrast to more southern destinations. The key rental demand drivers are students and young professionals, with many of the latter choosing to base themselves in Liverpool and commute elsewhere. The city enjoys an average rental yield of 6% – and as the fastest growing city population in the country, indications look positive that this will stay high for a long while to come.

Leeds: A Stronghold of Rental Yields

Buy To Let property investment has long been a fruitful business in Leeds, where average rental yields come out at 6.7%, with districts such as LS6 reaching 7.0% and LS1 6.9%. Indeed Leeds is one of the country’s most robust markets for Buy To Let property investment and its continued reasonable property pricing keeps this the case.

Frequently Asked Questions

What is the average rental yield for buy-to-let properties in the UK?
The average rental yield for Buy To Let properties in the UK is 5.6%. The north of England and Scotland present the best yield opportunities, and London the lowest.

How do I calculate the profitability of a buy-to-let property?
Rental yield can be calculated using either a property’s current value or purchase costs. It’s always recommended to use a digital Rental Yield Calculator for the most accurate results.

Is buy-to-let still a good investment in 2025?
Britain’s rental market remains buoyant, with high rental demand as a result of continually rising house prices and economic difficulties. Lenders are keen to support Buy To Let investors as a result of their potential returns, with a myriad of competitive mortgage options on offer, including low-deposit mortgages and fixed-rate deals. Buy To Let property continues to be a good investment – and with demand and yields both set to increase, can only keep getting better!

Which city offers the highest rental yield in the UK?
Manchester can be considered the best city for rental yields in the UK, with postcode areas such as M14 reaching up to 12%*. A combination of a young population, strong regional economy and hefty predicted growth work together to boost the city’s rental potential.

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 below:

Sources

* Track Capital