Table of Contents
Property Listing
- Manchester
Deposit
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Yield
Property Price
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- Manchester
Deposit
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Yield
Property Price
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- Manchester
Deposit
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Yield
Property Price
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Why Manchester is a Hotspot for Student Property Investment
When thinking about student properties, Manchester tends to pop up straight away—and honestly, it’s no surprise. This lively city in the north has really nailed the balance between high rental yields and a steady demand for student accommodation.
It’s a bit of a no-brainer for investors, who are drawn to the long-term potential for generating passive income and seeing property values rise over time.
Manchester attracts students every year thanks to the city’s thriving universities and growing employment sector. In addition, there is a certain momentum in the real estate market that attracts investors looking for student housing.
A Growing Student Population & Housing Demand
When it comes to student accommodation, Manchester is in a class of its own. Leading universities like Manchester Metropolitan, the University of Manchester and the Royal Northern College of Music here, enrol over 80,000 students each year.
Likewise, Manchester draws foreign students from more than 60 different nations, each of whom has various housing preferences. It’s not just local students who come to Manchester.
So there’s always a demand for a variety of options, whether it’s classic shared housing (which in Manchester often requires an HMO licence) or more modern purpose-built student accommodation (PBSA).
Also, there will be an increase in students in the near future. Manchester will welcome over 100,000 students in the upcoming years, therefore there will undoubtedly be a huge demand for student housing there.
When you combine it with the reasonably priced property market, it becomes evident why investors believe there is long-term potential in this area.
Key Benefits of Investing in Student Properties in Manchester
Before investing in any student property in Manchester, it is important to know why this is a profitable opportunity for you. The city has a large number of students living in it, so it provides a strong base for rental yields.
With that in mind, let’s move on and look at why buying student property is such a good investment, especially in a city like Manchester.
Strong Rental Yields and Year-Round Demand
The range of housing options in Manchester is one the biggest factors that increases the allure of investing in student housing. By investing here, you can meet the different demands of students by offering both purpose-built student accommodation (PBSA) and exclusive HMOs (Houses in Multiple Occupation).
This flexibility guarantees that you have a broad market to target, whether it is domestic or foreign student accommodation, and it also helps maintain low vacancy rates.
From traditional HMOs (House in Multiple Occupations) to purpose-built student accommodation (PBSA), you can serve student needs and budgets. Not just that but, you won’t have to worry about your property being vacant in the summer too.
Numerous universities in Manchester offer housing contracts to Manchester University that extend for the whole academic year, guaranteeing a consistent flow of rental income with few periods of vacancy.
Passive Income Through Managed Properties
The fact that there is no upfront investment makes buy-to-let student properties so alluring. Property management services are a popular choice among landlords, especially for those who are new to the industry or don’t reside in Manchester.
You must look up these services if you are new to the field of real estate investing and are clueless about it. They take care of every facet of property investment management. They will handle all the details, including locating the right renters, collecting rent, and even taking care of property maintenance.
If you wish to keep things simple, investing in purpose-built student accommodation (PBSA) might be the way to go. Many PBSA properties come fully managed, so you don’t need to lift a finger when it comes to tenant management or maintenance.
Investing in managed student housing is a reliable option for those looking to diversify their investments or just lower the risk element. Any investor looking for a stable and profitable investment should pay close attention to student properties in Manchester, regardless of whether they are eyeing a shared house in Rusholme, a studio apartment in the city centre, or something close to Salford Quays.
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Tax Advantages and Financial Benefits of Student Property Investments
Aside from that just steady demand and strong rental yields, there are some other factors you should consider when investing in student housing in Manchester. This venture is even more appealing because of its amazing tax perks.
There are multiple methods that the government can assist investors in increasing their profitability, ranging from mortgage interest deductions to wear and tear allowances.
Let’s look in the detail here:
Mortgage Interest Tax Relief
The opportunity to claim mortgage interest tax reduction is one of the main advantages for landlords in the buy-to-let student property market. This implies that if you purchased your student residence with a mortgage, you may deduct a portion of the interest from your taxes.
That’s a big win when you’re looking at the long-term profitability of your investment. Even though the rules around mortgage interest tax relief have tightened in recent years, it’s still worth exploring how this can reduce your tax burden, especially with buy-to-let mortgages specifically tailored for student accommodation.
Wear and Tear Allowance
If your student property is fully furnished (and let’s be honest, most students expect it to be), then you’ll want to take advantage of the wear and tear allowance. This allows you to deduct the costs of maintaining furniture and fittings from your taxable income.
With the constant turnover of students each year, things like sofas, beds, and kitchen appliances naturally take a bit of a beating, so it’s great to know you can claim some of these expenses back. Whether it’s shared accommodation in Rusholme or a studio apartment in the city centre, maintaining quality furnishings is key to keeping your property in high demand.
Capital Gains Tax Allowance
If you decide to sell your investment property in Manchester down the line, you could be looking at a nice profit thanks to capital appreciation. And when it comes to selling, there’s some good news on the tax front. Capital gains tax (CGT) is payable on the profit made from selling a property, but there’s an allowance that could work in your favour.
As of the 2023/2024 tax year, the first £12,300 of your gains is exempt from tax. This can make a real difference when it comes to your final returns, especially if you’ve held onto the property long enough to benefit from Manchester’s ongoing property market growth.
Inheritance Tax Benefits
Now, this might seem like planning way down the line, but it’s worth thinking about how student property investments can factor into your long-term financial planning, particularly regarding inheritance tax.
In case you decide to hold your properties within a limited company structure, you might be allowed for Business Property Relief, which can minimise the inheritance tax liability. This can make student properties a solid part of any financial planning strategy, particularly for those looking to pass on their portfolio to the next generation.
Local Government Incentives
Manchester’s local government offers a variety of incentives to investors who want to invest money in developing parts of the city. If these programs provide grants or tax breaks to help improve the property, the total value of your investment will increase.
Areas like Ancoats and Salford Quays have seen huge transformations recently, and there’s no sign of it slowing down. Investing in student housing in Manchester might be even more financially sensible if you take advantage of these programs.
Best Student Property Areas in Manchester
Didsbury
If you’re considering student accommodation in Manchester, Didsbury is the spot where trendy living meets solid investment. Known for its charming blend of bars, independent shops, and fantastic eateries, Didsbury draws not only students but young professionals too. This part of town isn’t your standard budget option—it’s more upscale, so expect higher property prices.
But the flip side is that you’re also looking at higher rental yields. And with its ever-present demand from both students and professionals, you’ve got steady rental income pretty much guaranteed. It’s a place where properties don’t stay vacant for long.
Plus, the popular Sunday Makers Market keeps the area buzzing, making it even more attractive for those looking for a vibrant lifestyle. Definitely a strong contender if you’re aiming for passive income properties or portfolio diversification in real estate.
Fallowfield
Fallowfield is like the heartbeat of Manchester’s student housing scene. This area’s reputation precedes it—it’s lively, full of energy, and close to both the University of Manchester and Manchester Metropolitan University. If you’re into buy-to-let student properties, this area is an investor’s dream.
The demand here never seems to falter; undergrads love it for the buzzing social life and affordable living. We’re talking about shared accommodation, HMOs, and all sorts of student-friendly digs. Property investment in Manchester doesn’t get much more reliable than Fallowfield.
Low upfront costs, consistent rental demand, and a solid flow of tenants year-round make it perfect for those seeking high rental yields. And with the area being close to other hotspots like Withington and Didsbury, it’s a winner for long-term investment.
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Hulme
Hulme is an underappreciated neighbourhood that deserves more recognition. It’s competitively priced and growing quickly when compared to other parts of Manchester. This location, which is ideal for students as it is just south of the City Centre, is easily accessible by bus or rail to all of the major university campuses.
What makes Hulme stand out is its affordability combined with its potential for capital appreciation. Manchester’s regeneration projects are pushing southwards, which means Hulme could see some significant growth in property values over time.
The area has a cool arts scene and plenty of green spaces, making it a nice place for students looking for a bit of tranquillity alongside the usual student life. From an investment perspective, it’s a great chance to get in on the ground floor while still enjoying strong rental demand.
Manchester City Centre
If you’ve got a bit more to invest, Manchester City Centre is where premium student properties shine. International students and postgraduates who are prepared to spend a little bit more for city living and all its benefits tend to congregate here.
City Centre properties are widely sought after because of the convenience of being close to universities and all the stores, restaurants, and cafés right on their doorstep. Expect year-round rental demand here—this isn’t a place where you’ll have many gaps between tenants.
The potential for long-term capital appreciation is another key benefit. For those thinking of building a property portfolio, this is where you’ll find higher rental yields in student apartments or shared accommodations.
Rusholme
Rusholme is a fantastic choice if you’re looking to start small. Known for its affordability, this area offers a low-cost entry into the student rental market. It’s popular for budget-conscious students, yet it’s close enough to the action, thanks to the main bus route that runs straight into the city centre.
Plus, the famous Curry Mile is right in the heart of Rusholme, giving it a vibrant student atmosphere year-round. If you’re after steady rental income without breaking the bank on property prices, Rusholme could be just the ticket.
It’s a prime spot for buy-to-let investors looking for affordable student housing in Manchester with reliable returns. You might not see the high rental yields of more expensive areas, but the constant demand makes it a safe bet for any investment portfolio.
Withington
Withington offers the perfect balance of affordability and proximity to the key universities. It’s ideal for students who want to be close to the lively Fallowfield scene but without the higher rents.
From an investor’s perspective, Withington offers steady rental demand, particularly with its easy access to public transport. It’s a short hop into the city centre or the main university campuses. Properties here tend to have moderate rental yields, but the high occupancy rates more than makeup for it.
This area is a safe choice if you’re looking for long-term investment in student housing, with plenty of options ranging from shared accommodations to purpose-built student flats. For anyone looking to expand their property portfolio with a manageable, lower-risk investment, Withington is definitely worth considering.
Benefits of Using Property Management Companies for Hands-Off Investing
Working with a property management company will greatly enhance your experience if you find the thought of overseeing renters or repairing a broken boiler in the middle of the night disturbing (because, honestly, who enjoys that?).
From finding renters and collecting rent to handling maintenance concerns and reducing your involvement, these companies handle every part of managing your investment property.
With student housing in a city like Manchester always in high demand, having an experienced management company on your side may help ensure that your property stays in outstanding form and that your renters are content.
This is especially apparent if you’re investing in purpose-built student accommodation (PBSA), where you can just sit back and watch the money flowing in because these services are often covered.
Of course, property management doesn’t come for free—fees usually range from 10% to 15% of your rental income. However, the ease it brings, particularly when overseeing several buy-to-let student homes or trying to build a portfolio, is often well worth the investment. As you concentrate on increasing your investment, let the professionals handle the headaches.
Angel Gardens
Angel Gardens is located in an up-and-coming district of Liverpool. It is in close proximity to two major regeneration projects: the £150 million Project Jennifer and the £5.1 billion Liverpool Waters scheme.
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Student City Guide: Why Manchester is Perfect for Property Investors
Let’s talk about why Manchester is the perfect place for property investment, especially if you’re looking for student accommodation. This northern powerhouse has secured its place as one of the UK’s most vibrant student hubs, with over 100,000 students calling it home each year.
Due to the high demand for student housing owing to the huge student population, investors can expect stable rental income growth and a constant flow of new tenants.
But why is Manchester such a popular destination for student real estate investors? Let’s examine the universities and the culture that are causing this need in more detail to understand it better.
University Overview: Fuel for High Rental Demand
One thing about Manchester’s universities – they’re not just well-known across the UK; they attract students from every corner of the globe. Around 36,000 graduates walk out of Manchester’s universities each year, leaving behind a fresh wave of students in need of housing.
If you’re after strong and steady rental demand, properties in areas like Fallowfield and Rusholme are always buzzing with student life. You’ll never struggle to find tenants in these parts, making it a prime spot for long-term investment in student housing.
With HMOs (Houses of Multiple Occupations) and buy-to-let student properties in constant demand, these areas are ripe for generating passive income.
The University of Manchester: A Beacon for Investors
The University of Manchester is a true titan in terms of student attraction. As a member of the esteemed Russell Group, it is the biggest single-campus university in the United Kingdom with a rich and illustrious past that dates back to 1824.
This uni’s global reputation draws tens of thousands of students every year – both from home and abroad. For property investors, this means a stable rental market, particularly for those looking at premium student accommodation close to campus.
It’s all about location here, with student properties near the university fetching solid rental yields year after year. Whether you’re looking to invest in purpose-built student accommodation (PBSA) or more traditional flats, the demand is unwavering.
Manchester Metropolitan University: A Growing Investment Opportunity
Now, let’s not forget about Manchester Metropolitan University (MMU), which plays a massive role in the city’s student rental market. With the second-largest business school in the UK, MMU draws in a massive number of undergraduates and postgraduates alike.
If you’re thinking about student property investment, city-centre location is ideal for those looking to cash in on affordable student housing or PBSA. These students are after modern, sustainable living spaces, and with demand sky-high, it’s a fantastic opportunity for those keen on managed student accommodation.
The best bit? You can expect excellent rental returns without needing to worry too much about vacancies.
University of Salford: A Hidden Gem for Savvy Investors
The University of Salford is a wonderful option if you’d like to venture a little bit far from the bustle of central Manchester. The property costs here are slightly less than those in the city core, making it a more affordable upfront investment even though it’s only 2.4 km from the centre of Manchester.
Salford is becoming a bit of a hotspot, thanks to ongoing regeneration projects, and its Peel Park campus gives students a quieter, more budget-friendly alternative while still keeping them close to the action. For investors, this means properties with solid potential for capital appreciation as the area continues to grow.
University of Bolton: An Underdog Worth Considering
The University of Bolton has been steadily gaining popularity despite being smaller than the Manchester giants, especially because of its great teaching reputation and vocational degree programs. Additionally, a sizable portion of the student body is foreign, which is always advantageous if you want to diversify your real estate holdings.
Properties around Bolton are more affordable than those in Manchester proper, making it a great option for investors looking to dip their toes into the student accommodation market without needing a massive upfront investment. The consistent demand here makes for a tidy little earner.
University Academy 92 (UA92): The New Kid on the Block
A newer addition to the Manchester educational scene is University Academy 92 (UA92), founded with a focus on employability and life skills. The students here are looking for more than just a degree – they’re thinking about careers and life beyond graduation, which means they’re often after longer-term accommodation.
Close to Old Trafford, which is a great location if you are looking for rental homes that are in high dem and. Given the growing popularity of UA92, this would be an ideal time to make a housing investment for students who may decide to stay here after graduation.
Royal Northern College of Music: A Niche Opportunity
The Royal Northern College of Music (RNCM) provides a special chance to serve students in the performing arts for those looking to target a more specialised market.
These students are usually looking for residences near the university and the cultural centres of the city, thus the location is ideal for shared or studio apartments that strike a compromise between solitude and creativity.
By giving you access to a somewhat distinct but no less prospective pool of student tenants, investing close to RNCM could help diversify your portfolio.
Area Guide
Tom Collins
I’m your go-to broker, on a mission to make things simple and smooth when making your investment with me! My journey at Flambard Williams has been shaped by working in various financial fields and working closely with clients and their goals.
