Buying investment property in Manchester — Northern Quarter v St Johns
Manchester has been subject to major regeneration over recent years. With Spinningfields in the south of the city, and NOMA in the north, where should individuals buy investment property in Manchester?
Where are the best areas to buy investment property in Manchester? Both NOMA and Spinningfields have been named as some of the best buy-to-let locations.
Regeneration in the north of Manchester — NOMA and New Cross
Sitting in the north of Manchester on the perimeters of the city centre is the £800m NOMA development. The development focusses on the rejuvenation of the north of Manchester’s city centre, an area that to date has yet to see much development. NOMA is the largest development project outside of the South East of England, aiming to transform 4 million square feet of land into office, leisure, residential and retail space. Buy to let property investments close to the NOMA regeneration zone will be popular with individuals who wish to be close to the vibrant Northern Quarter, a district well known for its entertainment offerings and bohemian feel.
Buy to let properties such as Halo Gardens will experience capital uplift as regeneration progresses, especially as further plans have been announced to regenerate the nearby area, known as New Cross. Investors are advised to act quickly if they wish to secure a unit in Halo Gardens, as there is currently a 10% discount on exchange.
How will the development of Spinningfields and St John’s affect buy to let in the south of Manchester?
In the south of the city centre is the Spinningfields regeneration zone. Spinningfields is often referred to as the “Canary Wharf of the North”, due to it being the home of several banks such as HSBC and Barclays, and the domination of commercial buildings. Around 16,000 people are employed in the area and it now accounts for over 35% of Manchester’s prime office space. Manchester buy to let investment properties close the regeneration zone such as Rivergate House, are expected to fetch decent rental figures due to the demand from people that work in the area, and the value of the investment is expected to increase as regeneration progresses as it is situated just 600m from Spinningfields.
That, alongside proposals for the development of St John’s will increase the desirability of property in the area. Investors can secure a unit in Rivergate House and take advantage of the area’s potential with just a 15% deposit on exchange.
Will properties in the south of Manchester be in competition with properties in the north?
With all the regeneration in progress to both the north and south of Manchester’s city centre, it is natural to think that buy to let properties in both areas will be competing with each other. Whilst it’s true that it is now not so clear as to which area is ‘nicer’ or which properties deserve the higher rental yields, NOMA and Spinningfields have very different characters and appeals. NOMA is situated near Manchester’s Northern Quarter, a bohemian area well known for having numerous independent restaurants, bars, art galleries and cafes.
Spinningfields has a more corporate feel and is akin to London’s Canary Wharf, mainly accommodating financial services businesses and professionals. The Spinningfields area will be made more appealing to Manchester’s the non-corporate residents though as it is located next to St John’s, an ambitious new neighbourhood planned by Allied London that aims to incorporate commercial, residential and cultural spaces.
So, where exactly is the best area to buy investment property in Manchester?
In conclusion, we feel that both areas to the north and south of the city centre in Manchester have their appeal to the discerning investor. Both areas show promise and potential for high yields and capital uplift due to the surrounding redevelopment plans. We advise investors to visit the areas and see for themselves if they have a preference for either.