Home.co.uk reports that the number of homes for sale in Manchester has fallen by 70% since 2008.
In January 2008, there were a total of 13,334 homes on the Manchester property market, and yet latest figures from June 2016 are just 3,960. Two bedroom properties, in particular, have decreased 75% from 5,522 to 1,363.
The figures in Manchester echo the national drop in supply, with a 51% fall in properties on the market in England and Wales over the last eight years, down from 855,585 in April 2008 to 415,038 in April 2016.
So what does this mean for investors?
Well, for those looking to scoop a property investment in Manchester, it’s best news for the buy-to-let sector. As the city continues to demonstrate a shortage of supply, its popularity for property investment is steadily increasing.
The biggest demand amongst consumers is for rental accommodation in Manchester, so rental yields for buy-to-let investors are likely to be pretty fruitful. Just to solidify this, HSBC identified Manchester as the city in the UK offering the highest rental yields in 2015.
Select Property Group comments: “Manchester is a stronger portfolio asset than London,” and emphasises the growing demand for, particularly, two bed properties. Investors, therefore, need to be hot on picking up any appropriate stock for rental whenever it becomes available.
Doug Sheppard, of Home.co.uk has stated, “Without doubt, the growth of the private rented sector has played a significant part in the supply crisis, as the average home changes hands less frequently than before. Moreover, buy-to-let remains a very popular investment choice in the current economic climate.”
To summarise: you may find it tough to pick up a property investment in Manchester, but if you do, buy-to-let is likely to give you high rental yields, particularly in two bedroom properties.
Source: Select Property Group