In the last decade, the amount of foreign property investors choosing the North West as an investment location has skyrocketed. It’s not hard to see why, with factors such as high rental yields, low prices and a growing economy, cities such as Liverpool and Manchester are ideal for international investment portfolios.
Often called the ‘capital of the North,’ Manchester is a thriving city with excellent transport links across the UK, making it a key hub for business and investment. With a student population of over 100,000 across its universities, the city benefits from consistent demand for student rental properties. Coupled with its rapidly growing tech, finance, and creative sectors, as well as major regeneration projects like NOMA and Mayfield, Manchester presents a prime opportunity for property investors looking to capitalise on a strong and expanding rental market.
Liverpool is a thriving hub for business, culture, and investment. With its world-class maritime connections, a growing digital and creative sector, and major regeneration projects like Liverpool Waters and the Knowledge Quarter, the city offers vast opportunities for professionals and business owners. This economic growth has driven strong demand for quality rental properties, making Liverpool an ideal location for investment in the property market.
Property Interest in the North West
London has traditionally been the first choice for international investors in UK property, but in recent years, Chinese investors have increasingly turned their attention to the North West. Cities like Manchester and Liverpool offer property prices up to 60% lower than London, making them attractive for high-yield investments.
Alongside lower prices, the North West is home to over 150,000 students across major universities such as the University of Manchester, Liverpool University, and Manchester Metropolitan University, ensuring a consistent demand for rental properties. The high student retention rates also create strong long-term rental markets, as many graduates remain in the region for work.
Real Estate’s Impact on the Economy
Chinese investment has significantly contributed to the UK economy, particularly in real estate, technology, and finance. Over 200 Chinese-owned companies are operating in the North West, including China Telecom, Bank of China, and Pinduoduo, generating thousands of jobs and boosting local economies.
Liverpool is home to one of the UK’s oldest and largest Chinese communities, dating back over 180 years, while Manchester’s China Town is the second-largest in the UK, offering a welcoming environment for Chinese investors.
The North West: A Buy-to-Let Hotspot
Manchester and Liverpool have become some of the top-performing UK cities for rental yields, often outperforming London by 1-4%.
- Manchester: Rental yields reach up to 8-9% in key areas such as Salford and the city centre. The city’s economy is growing rapidly, with £1 billion worth of investment in developments like NOMA and Mayfield.
- Liverpool: Areas such as the Baltic Triangle and Ropewalks offer yields of 7-10%, supported by significant investment in projects like Liverpool Waters (£5 billion development) and the Knowledge Quarter (£2 billion investment in research and innovation)
Additionally, a recent Juwai.com report found that connectivity, proximity to top universities, safety, and high return on investment are key factors influencing Chinese property buyers, all of which the North West excels in.
What Do Chinese Investors Look For?
Chinese and other Asian investors dominate the international property market, and the UK remains a preferred location for several reasons:
- Safe and stable investment – The UK property market is a reliable and long-term investment, particularly compared to China’s volatile market and government restrictions on property ownership.
- Educational opportunities – The UK is the top destination for Chinese international students, and many investors purchase properties to house their children while they study abroad.
- Diversification of assets – Purchasing UK properties helps Chinese investors hedge against economic risks in China, providing an additional income stream.
- Business expansion – Many Chinese entrepreneurs opening businesses in the UK purchase properties for their personal use, increasing interest in the North West market.
Student Accommodation: A Growing Investment Sector
Manchester and Liverpool both have large and growing student populations, making them prime locations for student accommodation investment.
- Manchester is home to three major universities with over 100,000 students, creating a huge demand for rental housing.
- Liverpool has more than 50,000 students, with some of the highest student retention rates in the UK, keeping the rental market strong year-round.
Why Now is the Right Time to Invest
With strong rental yields, rising demand, and large-scale regeneration projects, the North West presents an exceptional investment opportunity for Chinese buyers looking for secure and high-performing assets.
However, navigating the UK property market requires expert guidance. Working with experienced property investment professionals can help investors find the best opportunities, maximise rental yields, and ensure long-term success. With in-depth specialist knowledge of the Manchester and Liverpool markets, our team provides bespoke investment advice to help investors make the most of their property portfolios.
For Chinese investors looking to secure a foothold in the UK’s thriving property market, the North West is the place to be.
