The news of the Old Trafford regeneration has sparked curiosity and excitement about the opportunities that this development will bring to the UK property market. Beyond revitalising Manchester United’s iconic stadium and continuing Manchester’s urban regeneration, the project also presents a wealth of new opportunities for property investors. But how exactly will the Old Trafford regeneration project benefit buy-to-let investors? In this article, we will explain the significance of this project for the city of Manchester and how property investors can capitalise on this exciting development.
Why is Old Trafford Undergoing Regeneration?
Following the acquisition of a minority stake and control of the footballing operations of Manchester United FC in March 2024, Sir Jim Ratcliffe has spoken of turning Old Trafford into the ‘Wembley of the North.’ To achieve this, Ratcliffe established a taskforce made up of figures such as Lord Sebastian Coe, Gary Neville, and Andy Burnham to explore ways of enhancing the stadium’s infrastructure. The wheels for the regeneration have been in motion since the takeover, with plans extending beyond the development of a new stadium to include the enhancement of the surrounding area. This comprehensive vision encompasses improvements to public transport, housing, and public spaces.
The regeneration will not only create a more modern and accessible stadium but will also bring a huge uplift to the local economy and community, making the new stadium a vital cornerstone of Manchester’s ongoing urban transformation.
What is the Old Trafford Regeneration?
The Old Trafford Regeneration is a £4.2 billion project to redevelop the area around Manchester United’s football stadium, Old Trafford. The project includes the building of up to 17,000 new houses, new business spaces, and recreational areas. At the heart of the regeneration is a state-of-the-art football stadium, designed to accommodate 100,000 fans. This new stadium, favoured by owner Sir Jim Ratcliffe and the Manchester United Regeneration Project Taskforce, is set to take five years to complete, with an estimated cost of £2 billion.
Lead architect Norman Foster envisions a ground-breaking design, featuring a ‘vast umbrella’ over the stadium to harvest rainwater and a new public plaza twice the size of Trafalgar Square. Foster aims to transform the area into a mixed-use “miniature city” — a global destination that will elevate Manchester’s status on the world stage.
What impact will the project have?
The project is set to have a significant impact on the city of Manchester. The project will create 92,000 jobs and contribute over £7.3 billion to the UK economy. According to Oxford Economics’ preliminary report, the area will create as many as 17,000 new homes and will drive an additional 1.8M visitors to the UK per year. Chancellor Rachel Reeves has hailed the initiative as a prime example of the bold reforms needed in the housing market, a sentiment echoed by Manchester United CEO Omar Berrada, who has praised the government’s support for the project. Mayor of Greater Manchester, Andy Burnham, has also lent his support, describing the regeneration as potentially having an even greater impact than the London 2012 Olympics. He believes the benefits will be far-reaching, with a profound positive effect on Greater Manchester, the north-west, and the country as a whole.
What does the regeneration mean for property investors?
The Old Trafford Regeneration project presents an excellent window of opportunity for investors to capitalise on the influx of investment in the area.
Off-plan developments
Developers will build over 5,000 new homes, and with the potential for more, investors will have more opportunities to invest in off-plan properties in the area. These will experience significant capital appreciation, especially as the area continues to develop and add more businesses, recreational spaces, and other amenities.
High Rental Yields
The demand for rental properties in the Old Trafford area will only increase as the regeneration project progresses. This will lead to high rental yields, particularly for new-build properties that attract tenants looking for modern, convenient living spaces. Short-term lets, driven by tourism and events at Old Trafford, will also experience strong demand and can generate higher yields compared to long-term rentals. As Manchester’s popularity as a city grows, the demand will remain high for the foreseeable future.
Improved infrastructure
As part of the regeneration, Old Trafford will benefit from significant improvements to transport and public infrastructure. New bus, tram, and rail links will make the area even more accessible, making it a desirable place for tenants who commute into Manchester city centre. The improved connectivity will not only raise the appeal of the area but also increase the value of properties, benefiting investors in both the short and long term.
Portfolio diversification
With the addition of short-term let opportunities in the area, the regeneration around Old Trafford offers investors the chance to diversify their portfolios. Short-term lets, which typically yield higher returns than traditional buy-to-let properties, will benefit from the influx of sports fans, tourists, and business visitors to the area. Properties located close to the stadium and other attractions will be in high demand for these short-term rentals.
Long-term stability
The government is backing the regeneration project, which is expected to unfold over the next five years. Given its strategic location, the area’s property values and rental demand are likely to remain strong for the long term. The continuous investment and development will ensure that properties in Old Trafford retain their value, providing investors with stable and sustained income and capital appreciation opportunities.
Explore Advantage Investment’s Trafford Property
Located in the Trafford area, our off-market property offers investors a great opportunity to enter Manchester’s thriving property market. With attractive AST yields of 6.5% and impressive short-term yields of 15.0%, it offers a compelling return on investment. Completing in Q3 2025, this property is ideally positioned to benefit from the Old Trafford Regeneration, which will significantly enhance the value of the area. With capital appreciation expected to surge over the next five years, there’s never been a better time to secure a property in this area of high growth potential.
Why Manchester has become a property investment hotspot
Manchester has rapidly developed into one of the top destinations for property investment in the UK. Due to its regeneration efforts, strong economy, and relatively affordable property prices offering high yields (compared to other major cities such as London), Manchester has become a prime location for the buy-to-let market. JLL project Manchester to be the second-best city in the UK for price growth by 2028 and anticipate a rise of 19.3%. Additionally, rental values are expected to increase by 4% annually until 2028, trailing only Birmingham and Edinburgh. This trend reflects the increasing demand for property in Manchester, as more people are being drawn to the city for its employment opportunities, unique cultural scene, and high quality of life.
Previous Successful Regeneration Efforts
Manchester’s track record of successful regeneration projects further bolsters its reputation as a top investment location. Let’s take a look at a few examples:
Media City
This £1 billion development in Salford has completely rejuvenated the area, turning it into a dynamic hub for digital industries and media companies. Home to major companies like the BBC and ITV, Salford has rapidly emerged as one of the UK’s biggest digital and media centres. The regeneration has sparked significant growth, driving up demand for residential properties and leading to impressive rental yields. Since the Peel Group’s investment in MediaCity, the average property price has surged by 70%, highlighting the area’s remarkable transformation.
If you would like to explore the property investment opportunities available in Media City, explore our Off-Market Media City property
Manchester City Stadium and surrounding area
The redevelopment of the area around the Etihad Stadium has transformed East Manchester, with the creation of new homes, public spaces, and commercial developments. This regeneration has attracted both residents and businesses to the area, improving property values and rental demand.
Why Investors Should Keep an Eye on The Old Trafford Regeneration
The Old Trafford regeneration is not just about the development of a new football stadium – it’s about revitalising an entire area of Manchester. With plans to create thousands of new homes, boost tourism, and generate tens of thousands of jobs, the project promises to provide long-term benefits for property investors. Now is the perfect time to capitalise on the growing demand for both residential and short-term rental properties.
As the area continues to develop, investors who act early could see significant returns on their investments. Whether you’re looking to diversify your portfolio, take advantage of improved infrastructure, or benefit from higher rental yields, the Old Trafford regeneration offers a wealth of opportunities for buy-to-let investors.
Don’t miss out on the opportunity to invest in Manchester’s exciting future. Contact us today to get in touch with one of our award-winning agents and explore the potential of the UK’s property market.
