Where is the Second City for Investment?

Birmingham and Manchester compete for the chance to be Britain’s second city

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Our fact sheet weighs up Manchester and Birmingham’s fundamentals to discover which city is best for investment

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In our fact sheet

  • Rental yield in Manchester v Birmingham
  • Graduate rentention levels
  • Opportunities for capital growth
  • Transportation infrastructure improvements
  • Demand for properties
  • Outlook

David Lowe

My wife and I used One Touch Investments to create retirement income and their agent Stuart Cowie looked after us throughout. We never felt pressured and were afforded all the info and time we needed. We achieved our goal and more with Stuart’s help and can’ thank him enough. We would definitely recommend this company.”

Investment fundamentals in Birmingham and Manchester

Also includes investment opportunities in both cities

Young Professionals

With more affordable rents and job opportunities like what is available in London, it is understandable that young professionals have been moving to Manchester and Birmingham. In fact, Birmingham has one of the youngest populations in Europe, with 40% of the city’s inhabitants being under the age of 25. Manchester’s city centre population has grown by 149% between 2002 – 2015 and job growth has been 84% between 1998 and 2015.

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Rental Yield and Capital Growth Prospects

Manchester performs slightly better than Birmingham in terms of rental yields, offering an average of 5.55% compared to Birmingham’s 4.61%.

In Birmingham, the average weekly wage is £527, this is compared to an average weekly wage of £512 in Manchester. Although not a massive disparity, the higher wages coupled with lower property prices could mean that in future residents in Birmingham are in a better position to buy property compared to residents in Manchester. A larger proportion of wealthy young professionals looking to buy property will obviously have a positive effect on capital growth. This is reflected in house price growth, with Birmingham edging Manchester slightly at 16% compared to 15% since June 2016.

Businesses Moving Away From London

Both cities have experienced a large amount of investment and some companies have been moving their headquarters from London to Birmingham and Manchester due to cheaper rents. Amazon are setting up their first building in Manchester later this year and the transformation of MediaCityUK has attracted brands such as ITV and Kellogg’s. Similarly, companies are finding Birmingham increasingly attractive, PwC has announced it will take up all the commercial space at One Chamberlain Square and BBC Three have moved part of their business to the city.

David Lowe

My wife and I used One Touch Investments to create retirement income and their agent Stuart Cowie looked after us throughout. We never felt pressured and were afforded all the info and time we needed. We achieved our goal and more with Stuart’s help and can’ thank him enough. We would definitely recommend this company.”

Full Report Contains

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  • Floor plans
  • Prices and availability
  • HD Video walkthrough
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