Whenever looking for a house for sale in the UK or in Manchester, it is vital you look at the market trends and house price fluctuations in the wider area of Greater Manchester too. House prices of houses for sale can change even among different streets very close to each other so, as a landlord, it would be a good idea to be familiar with the area of Manchester.
In this article, we will be looking at the city of Manchester in detail so you know how to navigate the area and have a better understanding on where to invest.
How are rental yields of the houses for sale different to the rest of the UK in Manchester?
You may have heard of rental yield as being important for investors who wish to make a sizable profit on their rental properties. If this sounds like you and you’re looking to invest in a house currently for sale and collect rental income in Manchester this statistic is what you were looking for.
Data should also be compared to the broader region of the UK (North West) alongside Greater Manchester then looked at with other statistics like the area’s rent and the turnover of sale of the houses in question. It could be that an investor prefers to make a profit on the sale of a house rather than the rental income and optimal properties for this investment varies throughout Manchester.
This decision is made differently depending on the investor’s tolerance for risk, investing strategy, the location they’re investing in and their overall goal for buying a house currently listed for sale.
|Average Yield||Average Asking rent||Turnover (rental)||Turnover (sale)|
As you observe table above, it could be valuable to contrast these figures with other pieces of data relevant to the process of buying like the crime rate or the appreciation of houses for sale in Manchester.
As you can tell, the best conclusions are drawn when the buyer of a house for sale looks at all the data involved holistically and doesn’t make quick decisions based on one or two pieces of data. As an example, comparing the data with the number of property sold per month (299) will be useful.
Are there more or fewer houses being built in Manchester?
Growth in the area can be a good signal of a booming house market. However, too much growth could also have negative consequences on the capital appreciation of a house as time goes on.
Take a look at the table below for Manchester that shows the growth in recent years.
|1 year||3 years||5 years|
|Manchester growth rate||2%||25%||36%|
High growth rates can signal an appreciating housing market, nonetheless, if there are too many houses being built, this could reduce demand for housing as the supply of houses for sale starts to catch up with the demand. Leading to stagnation or a decline in house pricing so understanding the growth in Manchester is important.
In Manchester, what are the demographics like?
How much do people in Manchester earn?
As earning potential goes up in a city, so does the quality of schools in the area, the general infrastructure and the social grade score (22%). All in all, the area becomes a more desirable place to live in.
This is why it is vital to pay attention to how much people are making annually in any city you plan on making a house purchase in. In Manchester, this works out to be £38,250. This can be looked at alongside the average household income which is price34,000to estimate how affluent the area is.
Manchester within Greater Manchester is notable for the type of people that live there. The statistics below show how this is the case.
As you read on, Manchester will be looked at by comparing it to the local region, as well as comparing it to the wider region too (North West). From what the population of the city is to how it’s growing as well as factors like the overall crime rate.
This data is impacted by the history of the area and what kind of industry there is around. All of which also impact house prices which is crucial for you to understand as you look at houses for sale in Manchester.
How deprived is the population of Manchester?
Most of the time, high deprivation levels signal that people cannot afford to sustain their living expenses. In Manchester, currently, 27% people fall into this category.
Measuring this statistic against the nationwide average of 33% should give you a pretty good idea of where the city lies in the scale of poverty in the area.
How much green space is available to residents of Manchester?
Providing the right amount of green space for people in the UK is a difficult subject because there are clear benefits for human health but at the same time, it is hard to make sure all areas of the UK can get enough greenery. This is a result of land being already in use in cities where most people live.
In Manchester, 12.0 is the amount of acres of outdoor space there is for every 1000 people. Charities such as ‘Fields in Trust’ recommend there to be at least 6 acres. This should allow you to conclude whether this green space is sufficient for you if you are interested in buying in Manchester.
What is the city of Manchester’s social grade score?
The social grade score is a good indicator of what type of jobs people generally work in the area. Whether that be working in the primary sector, secondary sector, tertiary sector or maybe the quaternary sector of jobs.
The scale is slightly different to this though on a scale of A to E. A refers to people who are in the most skilled, managerial roles whereas E include people such as casual workers.
In Manchester, the percentage of people in the two highest categories, A and B is 22%. This figure includes people who are therefore most likely to be more skilled and have higher paid jobs.
When contrasting these figures, the average household income for the area is £38,250. This income will generally get bigger as the percentage of people in the A and B categories go up too (22%).
What’s the crime rate in Manchester?
For the city of Manchester, crime rate is at 36. So for every 1000 people in the area, 36 commit a crime which is prosecuted. Paying close attention to this figure of crime rate is not only important for the value of a house but also to calculate the maintenance cost of owning a house and how attractive an area can be for future buyers.
So, compare it to the nationwide average of 79.52 per 1000 people and consider if you are happy with this figure based on the price you’re paying for a house you’re interested in.
On top of this, houses that are in areas where there is a high crime rate tend to have to pay higher insurance rates, costing a homeowner in the long term.
Additionally, paying for further security on a house such as CCTV or potentially gates and fences that deter thieves may be necessary for an area with a high crime rate.
For the city of Manchester, what is the education level?
In the city of Manchester, 32% people have a degree from a university. The higher this proportion is, in general, the more likely it is that the population is able to buy a house.
Interestingly, as people who have degrees go up, the average income of the area goes up too. You can see if there is a correlation, the average household income in the UK is price34,000 and the average income in Manchester is £38,250.
This should correspond with the average percentage of people in the UK who have degrees at 22.6%.
What is the population of Manchester?
The city of Manchester has a total population of 463,109. Large population sizes can be good to show there is a high demand for people to buy houses in the area but a better indication is if the population of Manchester is growing.
A small population city can also have high prices of houses for sale, because, if there is a growing population, and demand is still high, this could mean the house prices are pushed up.
Either way, a population must also be looked at in terms of the appreciation of the area as well as the rental yields and if the area really meets your needs.
The five year population change of Manchester
Over time, in the last five years, the population of the city of Manchester has changed by 4%. This figure can tell you a lot because a growing population indicates a house is likely to appreciate. Read more here
In addition, looking at the 10 year figure for population growth in the below paragraphs can give you further evidence as to what the change in population has been for a longer period of time. As a result, you’ll know if this 4% population change is something that has been there for a while or if it is a new trend. Click here to know more on the UK population trends.
What is the difference in population over the last 10 years in Manchester?
In the last 10 years, there has been a shift in the population of 10%.
Comparing this to the 5 year figure of Manchester can tell you if there is a long history of population growth or decline, if there are population fluctuations or if the trend is stable.
New industries opening up in the area, the addition of new jobs and also international and national migration might all be reasons for changes in population size. Resulting in people moving in or leaving an area.
A good example of a quick change in population was in Stratford, London in 2012. Here, there was an increase in government spending in the area because of the Olympics which resulted in massive population growth.
Asking price in Manchester for a house for sale
In the city of Manchester, what is the average asking price for the houses for sale?
|Average asking price (1 bed)||£194,419|
|Average asking price (2 bed)||£212,758|
|Average asking price (3 bed)||£284,013|
|Average asking price (4 bed)||£376,786|
|Average asking price (5 bed)||no relevant data for this city|
Reading the table above should therefore give you a good idea of the type of house for sale that is within your budget in Manchester and if you may need to look at a different area in order to buy the type of house you can afford.
Also, noting the £1,449 should also give you an overview of what the asking price for houses for sale are in general.
When investors make offers for houses for sale in Manchester, the average price asked by the homeowners works out to be £234,694.
In the table below, for all the different sizes of houses in the area, the average asking prices have been displayed. This tells you what kind of house is more or less expensive and sought after despite houses with fewer bedrooms being overall less expensive anyway.
Any house that looks like it is overpriced for the number of bedrooms it has in Manchester is typically not overpriced. It is just the case that that type of housing has a higher demand, therefore, people are willing to pay more.
In general, what do houses for sale sell for in Manchester?
For the city of Manchester, the average price a house sells for is £192,017. This value usually depends on the exact location of the house within Manchester as well as other factors like the population growth in Manchester which is 10% over a ten-year period.
|Housing category||Total final sale price|
|Aerage sold price (detached)||£286,102|
|Aerage sold price (semi-detached)||£195,414|
|Aerage sold price (terraced)||£179,570|
|Aerage sold price (flat)||£139,516|
The above table puts this figure into perspective as you can see the various average sale prices of a house for the specific type of house you’re most interested in. This comparison is important because the type of house you’re considering to buy may be more or less in demand based on variations in supply and demand in the city of Manchester.
|Housing category||Sale price per square foot|
|Aerage sold price/sqft||£2,356|
|Aerage sold price/sqft (new build)||£2,535|
|Aerage sold price/sqft (old stock)||£2,297|
Generalising the bottom table, the average value per square foot of a house for sale is £2,484. This value averages all of the types of houses for sale in Manchester. So, if you’re not sure what type of house you want specifically, you can still get an idea of the real estate market of Manchester.
Who can help you buy a house for sale in Manchester?
houses for sale in other cities in the UK
Below are a list of towns with a similar location to Manchester.
Reading these analysis will help you evaluate the different houses for sale currently listed in North West:
- Alpraham in North West
- Aiketgate in North West
- Buxworth in North West
- Biggar in North West
- Lancaster in North West
If you are interested in some other city or even region of the UK, please visit the following page houses for sale in the UK it contains all the data related to the houses for sale.
Invest in a house for sale that meets your demands
Many criteria impact the price of houses for sale in Manchester.
Here below are the most important ones according to Lofti’s expertise:
Affordability – (see what house for sale can you afford?)
A guide from the UK government
House Location – The borough and region of the UK you want to invest in is an important factor to consider when looking for a home for sale.
Transport – Commuting can be a waste of time. Minimise it by checking how long it will take from the house for sale you’re interested in, to your office before considering buying
Number of bedrooms – The number of bedrooms goes hand in hand with the house for sale price. If you are buying for the long period try to think if you might need an extra bedroom
Energy performance of the house for sale – The difference between an EPC rating of A and an EPC rating of G can impact your monthly utility bills, consider this when evaluating houses for sale.
Internet connection – Being able to take video calls from your home is crucial nowadays, always check the broadband of the area when browsing houses for sale
Car park – Ask the property seller for parking availability. If it is included in the price of the house for sale, you can justify paying more than you would at first glance
Conditions of the house for sale – Repair works can be expensive and take a lot of time, assess the conditions of the houses listed for sale before making an official offer.
Considering all the above data and information provided, you may want know who can help you buy a house for sale.
Lots of professionals offer property investors and first-time buyers advice and assistance in dealing with the process of acquiring a house for sale.
Below, you can find a list of professionals that come in handy when looking for houses for sale:
- Lender – Is someone capable of lending you the money you need to complete the purchase of the house for sale
- Insurer – Insurance companies provide building insurances and other financial products you need to protect your real estate assets
- Conveyancer – This professional will take care of the legal work needed when looking for a house for sale
- Surveyor – Use this professional to assess the condition of the house for sale you are willing to buy, get an independent valuation and feel more comfortable when negotiating the final price
- Mortgage broker or adviser – Different buyers can access different mortgages to buy a house for sale. Let the mortgage broker suggest to you which one is the best given your financial situation
- Energy professional – Nowadays is more important than ever, to get professional advice on the Energy Performance Certificate (EPC) of the house for sale you are considering as your next investment