Manchester joint best UK location for buy-to-let properties

Manchester has been named by landlords as the most attractive city to invest in buy-to-let properties in 2020, jointly with London.

A study of 800 UK landlords by landlord insurance provider Simply Business revealed their assessment of the buy-to-let market, which has been hit by a series of legislative changes in recent years.

The research showed Manchester and London as the cities where landlords expect the buy-to-let market to be most robust this year.

Combined, the two cities received more than a third (18% each) of votes when asked which city represents the best investment opportunity.

While the capital’s housing stock usually retains strong value, London house prices fell 1.8% in 2019, ending the year as the weakest performing region in the UK.

But today’s (January 24) figures suggest that existing landlords may now be recognising the opportunity to acquire more properties in the capital.

London shares the top spot with Manchester, whose own buy-to-let market is supported by the city’s strong student population and burgeoning media scene.

The research also suggests that UK landlords believe buy-to-let prosperity will be well spread across the UK’s regions in 2020.

Liverpool and Birmingham came in as joint second, with both cities securing 10% of the vote among landlords when considering where their next investment in 2020 lies.

Bea Montoya, chief operating officer at Simply Business, said: “Buy-to-let landlords are crucial to the UK economy, contributing a combined £16.1bn through pre-tax spending.

“The sector also now houses 20% of British households and has a huge presence up and down the country, so it’s wholly encouraging that landlords view a broad spread of regions as attractive areas to invest this year.

“London usually comes out on top for being the most expensive city to invest in property in the UK, but falling house prices are making it an attractive place to invest once again.

“We know a quarter of landlords are planning to sell at least one property this year, largely due to government reform and tax changes, so it’s reassuring to see that landlords are still eyeing up investment opportunities up and down the country.”

The list of most attractive cities for investment was:

1 London and Manchester (joint first)

2 Birmingham and Liverpool (joint second)

3 Edinburgh

4 Bristol

5 Leeds

6 Oxford

7 Glasgow

8 Cardiff

9 Southampton

10 Sheffield