Regional city buy-to-lets are back, as rental growth hits 13-year high
- Rental growth outside of London at highest level since 2008 (Zoopla)
- Fabrik Invest flags up potential of Manchester and other top city locations
- Combination of rising rents and price growth potential delivering a double win for investors
Property investors are enjoying the ideal combination of rapidly rising rents and continuing capital growth. Property investment firm Fabrik Invest reports that city buy-to-lets are back, with demand strong in Manchester, Preston and other UK urban areas, as renters return to city centres once more.
The firm’s findings are backed up by the latest Zoopla Rental Market Report. The Q2 2021 figures show that, excluding London, UK rental growth has hit a 13-year high, with a sharp rise in demand, particularly in city centres.
“With cities opening up once more and life returning to something close to normal, renters are once more embracing the convenience of the urban lifestyle. The exodus to the country that we saw when the pandemic began is now contrasted by a surge in demand from renters for city centre homes.”
Steve Jacob, CEO, Fabrik Invest
This is excellent news for investors in locations such as Manchester, where rents rose by 1.4% during the last three months. The city is home to a number of exciting new developments, with one of the most notable being Michigan Towers, at Salford Quays. In the midst of the £1 billion MediaCityUK expansion, the homes will provide a superb standard of waterfront living in easy reach of the best that the city has to offer. The 375 apartments are complemented by an on-site gym and cinema.
“Not only are rents shooting up in Manchester, but so too are prices, with an increase of 7.4% in the year to June 2021. This is the ideal combination of circumstances for investors looking to enjoy a healthy regular income as well as solid capital growth potential.”
Dale Anderson, Managing Director, Fabrik Invest