By Molo Finance
Manchester has proven to be a profitable area for buy-to-let investors valuing high yields and reasonable house prices. We covered some of the reasons behind the city’s popularity in a <a class="markup--anchor markup--p-anchor" href="https://medium.com/molo-finance/manchesters-make-up-e5322c0f78ae" target="_blank" rel="noopener" data-href="https://medium.com/molo-finance/manchesters-make-up-e5322c0f78ae">previous post about the Manchester buy-to-let scene</a>, and now we are looking at specific areas in the city that are buy-to-let hotspots.
Each one of these neighbourhoods has helped Manchester become one of the most appealing cities for buy-to-let investment in the UK. Investors can expect strong yields of around 5.8 per cent as well as an overall strong growth in rental prices.
So, without further ado, here are the areas in Manchester that are worth your attention. We have calculated the the yields for the most popular property type in the area and the overall yields for all property types combined.

<h4 id="6dd6" class="graf graf--p graf-after--p">Manchester City Centre</h4>
Manchester City Centre offers yields at the lower end of the scale when compared to other local areas. However, it’s still a favourite for buy-to-let properties, especially for those who are investing from outside of the city. The continuous building of new homes to keep up with demand highlights the city centre’s popularity..
With a location that sits on the doorstep of all the major working hubs — including the BBC — not to mention excellent travel connections and all the amenities you would expect from a major city centre, it’s not hard to see why such a central location would prove to be so sought after.
A one-bedroom apartment in the centre — one of the most popular rental property types — will cost you between £130,000 and £200,000, with an expected monthly rental of around £700 per month at the lower end of the scale and just over £1,000 at the higher end. Expect yields of about 6.5 per cent for a one-bed.
Overall for all property types combined: 3.8%

Average rental for all properties combined: £1,076

Average price for all properties combined: £339,553
<h4 class="graf graf--p graf-after--p"></h4>
<h4 id="cdd4" class="graf graf--p graf-after--p">Pendleton</h4>
An inner-city suburb of Salford, Pendleton comes under the M6 postcode in Manchester. It is one of the more densely populated areas of the city and is considered one of the key regeneration areas.
Excellent travel links into the city of Manchester and nearby cities such as Liverpool makes Pendleton appealing to commuters. It also offers an alternative to the higher rental prices found in the city centre.
Houses are the most popular property types in Pendleton: a two-bedroom property averages around £129,500. Investors targeting this area can expect to earn around £720 per month for a two-bedroom house and enjoy yields of 6.6 per cent.
Overall for all property types combined: 6.6%

Average rental for all properties combined: £942

Average price for all properties combined: £170,833
<h4 id="d9e1" class="graf graf--p graf-after--p">Fallowfield</h4>
With Manchester’s main university campus nearby, it’s not hard to see why Fallowfield is a rental hotspot. The beginning of December sees first-year students clamour to find housing, which marks January to April as the busiest times in the market.
Other than students, there is a clutch of families renting in the area — the excellent schools are one of the main reasons behind families living in Fallowfield. This suburb of Manchester is also known to have the busiest bus route in Europe, which means that residents are well connected.
Three-bedroom properties — ideal for families or student sharers — market for around £209,000 and achieve a monthly rental in the region of £1,050. Landlords can expect to see yields of about 5.9 per cent for three-bed properties.
Overall for all property types combined: 9.6%

Average rental for all properties combined: £1,705

Average price for all properties combined: £211,303
<h4 id="cae7" class="graf graf--p graf-after--p">Castleford</h4>
Located close to the city centre, Castleford offers an eclectic mix of old and new and has a distinct level of charm that makes it popular with creatives. Features include plenty of cobbled pavements, quaint waterways and even a Roman Fort.
New developments and conversations make up most of the properties in Castleford, and construction is continuous so that it keeps up with demand. Many buy-to-let investors are attracted to the area because of its proximity to the city centre.
Castleford is one of the most expensive parts of Manchester, with one-bedroom properties averaging £178,180. However, landlords can expect a healthy return on monthly rentals: a one-bedroom flat fetches in the region of £1,150 per month, which offers yields of 7.7 per cent.
Overall for all property types combined: 5.4%

Average rental for all properties combined: £1,286

Average price for all properties combined: £282,698
<h4 id="40ab" class="graf graf--p graf-after--p">Hulme</h4>
Many see Hulme as one of Manchester’s greatest successes. What was once a crime-ridden area is now home to brand new housing and plush developments. Such a turnaround has made it sought after with buy-to-let investors.
Hulme Park and Alexander Park offer tranquil open spaces, though the area is not shop and restaurant-heavy. However, with Deansgate only 10 minutes away, there are plenty of shops, bars and restaurants within easy reach.
Flats are the most popular property type in Hulme, with a one-bedroom apartment listing on the market for around £178,720. Monthly rentals for this type of property achieve in the region of £750 per month, which provides a yield of around five per cent.
Overall for all property types combined: 5.8%

Average rental for all properties combined: £1,065

Average price for all properties combined: £219,875
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<h4 id="62fb" class="graf graf--p graf-after--p">Didsbury</h4>
One of the most in-demand areas in Manchester, Didsbury offers tree-lined residential streets and many period homes. It is made up of three distinct areas: East Didsbury, known for its excellent schools; West Didsbury, which is known for its high-quality restaurants; and Didsbury Village, which is the most in-demand part of the M20 postcode.
Families tend to lay down roots in Didsbury, which means those choosing to rent will most likely lean towards long-term contracts that offer extra security. As well as a plethora of good schools, there are also many open spaces and an active community presence.
Didsbury is at the higher end of the price scale in Manchester, and three-bedroom homes are the most in demand. Expect to pay an average of £362,730 for a three-bedroom house and receive around £1,100 in rental income. Yields are around 3.6 per cent.
Overall for all property types combined: 4.8%

Average rental for all properties combined: £1,541

Average price for all properties combined: £378,153
<h4 id="5710" class="graf graf--p graf-after--p">All aboard the buy-to-let train</h4>
If you’re thinking of making Manchester your next area of investment and need a buy-to-let mortgage,, why not get a decision within minutes online? No paperwork. No fuss. Just competitive <a class="markup--anchor markup--p-anchor" href="https://app.molofinance.com/calculator/" target="_blank" rel="noopener nofollow" data-href="https://app.molofinance.com/calculator/">purchase and remortgage buy-to-let products</a>, from the UK’s first, and newly launched, digital mortgage lender.
Property value and rental yields from <a class="markup--anchor markup--p-anchor" href="http://www.home.co.uk/" target="_blank" rel="noopener nofollow" data-href="http://www.home.co.uk/">home.co.uk</a> in November 2018. All calculations factor in all property types and number of bedrooms.
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All aboard the Manchester buy-to-let train

By Molo Finance
Buy-to-let investments are still profitable ventures — if they are done correctly. When viewing a property, it’s in our nature to make decisions that are led by emotions. Buy-to-let investment requires a stone-cold approach that removes any emotive feelings.
You’re making a business decision, so it’s important to make one that will see you reaping the benefits. Yields, the type of tenants you want to attract, service fees (if it’s in a flat) — these are all vital aspects that should be considered.
If you’re a little lost when it comes to knowing what to look for in an investment property, fear not. We’ve put together some useful tips to help you make an informed decision about purchasing a buy to let.
Location, location, location
The location is always the first parameter when searching for a property. If you were buying somewhere to call your home, the property would need to be in an area that you want to live. Fortunately, investment properties don’t mean that you’re rooted to buying in the same area where you live.
The numbers come first in the buy-to-let market, and it might be that you live in a town or city where yields aren’t enticing. Research is always key, as is having an open mind. It’s better to cast your net further afield to give yourself a wide variety of options.
I like big yields and I cannot lie
Yields will play a big part in your decision to purchase a buy to let. The yield is how much you will get in rent in comparison to what you paid for the property. Yields change with property trends, and it’s worth weighing up the reasons why you want an investment property.
If you plan on keeping it for the long-term (15–20 years), then you should look at areas with high yields. Manchester, Leeds, Nottingham — these are all cities with lower purchase prices and monthly rent, but they offer higher yields.
Those who place more emphasis on faster growth in property value won’t hold yields in such high esteem. People buying a property, hoping to sell it in a couple of years for an increased price, will likely purchase outright and usually won’t take a mortgage.
To manage or not to manage
Will you manage the buy to let or use a property management company? If you want to manage the property, it’s worth looking for somewhere that is easily reachable from your home. You won’t be required to go there often, but it might be comforting to know you’re nearby in case of any significant problems that may arise.
The location of your buy to let isn’t as important if you’re happy using a property management company. A professional organisation will manage any issues that arise, from fixing appliances to handling tenant check-in and check-out. The fee for using a property management companies is dependent on negotiation but is usually four or five percent of the monthly rent.
View from the top
Make sure that you are aware of any extra costs if you are investing in an apartment. Service fees will be your responsibility — not that of the tenant. Some service fees can be as high as £3,000 per year, which is £250 a month. Suddenly that monthly rental of £1,000 doesn’t look quite as appealing. Agents don’t often advertise service fees, so make sure you always ask upfront when enquiring.
There may also be planned works on the building, which would mean you are liable to pay a part of the cost. Your solicitor will run a check to see if there are any additional works planned before you purchase the property. Even if the result shows no potential building work, it’s still possible that fixes — painting the exterior, new carpet for the communal area — will be required in the future.
Type of tenant
Every landlord wants a good tenant, someone who looks after the property and always pays the rent on time. Will you target students, families or single professionals? Students tend to rent cheaper accommodation unless it’s in London, where international students often pay prices in line with market demand.
Families are more likely to require a house but be wary as the market for families looking to rent isn’t overflowing with demand. Professionals fit the stereotype of the traditional renter. They will probably be a few years into their career and favour long-term renting to staying at home and saving for a deposit.
Will you go for short term or long-term rental? Most landlords go for a 12-month AST (Assured Shorthold Tenancy), but some prefer short-term lettings. You can charge more for shorter stays, but you increase the chance of void periods and agent fees.
Finding the right property
Purchasing a buy to let is an exciting but daunting experience, especially if it’s your first time. If you do your due diligence and research the market, you will put yourself in a stronger position to find a buy to let that offers a good rental return and has good tenants.

What should you look for when purchasing a buy-to-let property?

<div>Molo is the UK’s first, fully-digital mortgage lender. With real-time lending decisions, via a seamless online journey, we are re-imagining forever how you get a mortgage. Our range of simple and straightforward buy-to-let mortgages are available now, but we won’t stop there.</div>
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<div>In a world where people have forever changed how they listen to music, watch films, and shop, the world of financial services came late to the digital revolution. One by one though customers are embracing new ways to manage their money, save their pennies, and plan their financial futures. Getting a mortgage was still stuck in the dark ages - until now.</div>
<div></div>
<div>Molo exists to fix what is broken in the mortgage market: cumbersome, slow processes, become fast, decisions; weeks of waiting only to be rejected, becomes transparency of eligibility and decisioning; and high costs and tricksy incentives, become fair value, with low fees and no hidden charges.</div>

Molo Finance

<div>Molo is the UK’s first, fully-digital mortgage lender. With real-time lending decisions, via a seamless online journey, we are re-imagining forever how you get a mortgage. Our range of simple and straightforward buy-to-let mortgages are available now, but we won’t stop there.</div>
<div></div>
<div>In a world where people have forever changed how they listen to music, watch films, and shop, the world of financial services came late to the digital revolution. One by one though customers are embracing new ways to manage their money, save their pennies, and plan their financial futures. Getting a mortgage was still stuck in the dark ages - until now.</div>
<div></div>
<div>Molo exists to fix what is broken in the mortgage market: cumbersome, slow processes, become fast, decisions; weeks of waiting only to be rejected, becomes transparency of eligibility and decisioning; and high costs and tricksy incentives, become fair value, with low fees and no hidden charges.</div>

Founder & CEO, Molo

Francesca is the founder and CEO of Molo, a fintech start-up focused on digital mortgage lending that she founded in 2017 to bring digital disruption to the mortgage space, at last.
Before founding Molo, Francesca had 15+ years of banking experience and has held several senior roles in some of the largest banks in Europe, including Deutsche Bank and Barclays. She started her career in consulting and private equity at McKinsey &amp; Co. and Bridgepoint Capital between London and Milan. She holds a PhD in Banking and Finance from the University of Rome, MBA (Hons) from Columbia University, Diploma from Harvard Kennedy School of Government. Francesca was nominated a Young Global Leader by the World Economic Forum in 2014. When she is not busy with work, Francesca enjoys spending time with her two sons, playing the piano, travelling and playing any type of sport.