Property Investment Manchester

Investment property for sale in Manchester typically offers a balance of affordability and demand that is increasingly difficult to find in many UK cities. Compared to London and parts of the South East, entry prices remain more accessible, allowing investors to deploy capital efficiently while targeting competitive rental returns.

Manchester’s rental market is underpinned by a broad tenant base. Young professionals, graduates and skilled workers are drawn to the city by employment opportunities across sectors such as technology, media, healthcare, education and advanced manufacturing. This diversity helps maintain consistent occupancy and reduces reliance on a single tenant group.

Regeneration is another defining factor. Ongoing investment into transport infrastructure, commercial districts and mixed-use developments continues to reshape key areas of the city, strengthening long-term demand and supporting capital growth.

Key advantages for investors include:

• More affordable entry prices compared to southern markets
  
• Strong and diverse tenant demand across multiple employment sectors
  
• Ongoing regeneration improving connectivity and local amenities
  
• Consistent rental occupancy supported by population growth
  
• Long-term growth potential aligned with infrastructure investment

For investors, these combined factors create an environment where income resilience and capital appreciation can work together within a long-term strategy.

Like other areas of the UK, rental yields in Manchester vary by postcode, property type and tenant profile, but many districts continue to outperform national averages. This is largely driven by the relationship between accessible purchase prices and strong rental demand from a growing workforce.

Price points also differ across the city. Central locations and well-established neighbourhoods tend to prioritise demand stability, while emerging districts benefiting from regeneration often provide more attractive entry levels. This range allows investors to select opportunities aligned with their preferred balance of yield and capital growth.

Manchester’s tenant market continues to evolve. Increasing numbers of graduates, remote workers and relocating professionals are choosing city living, supporting demand for well-located, modern rental homes. This sustained interest reinforces Manchester’s position as a flexible market capable of supporting different investment approaches.

Predictions for buy-to-let in Manchester show a bright future for the local housing market.

According to industry experts JLL, Manchester prices are set to fall by 6% in 2023.

This is followed by a 1% rise in 2024, a 4.0% rise in 2024, and a 5.0% rise in 2025 and 2026.

Overall, between 2023 and 2027, JLL expects property prices to have a cumulative growth of 8.9% in the next five years.

It’s a similar story according to Savills, who outlines regional house price growth predictions by 2027.

They found that the North West region will see the joint-highest growth in the UK alongside Yorkshire and The Humber, with prices expected to rise by 11.7% by 2027. London, in comparison, is expected to see -1.7% growth due to huge decreases in property values.

These figures reinstate that the North is looking a lot more promising than the South when it comes to property market growth, with Manchester buy-to-let property out in front as a key investment area.

With over 100,000 students in Greater Manchester and a large bulk focused on the city of Manchester, the region is a fantastic choice for both residential property and student property.

Offering a much-loved student scene filled with world-class restaurants and nightlife opportunities, the city is known throughout the world as a student city.

The likes of Manchester Metropolitan University, the University of Salford, and the University of Manchester are some of the best in the world, with the latter voted the 8th best university in the UK for 2023 by The Times

Student accommodation can be a compelling option for property investors looking at Manchester city centre, with higher rental yields and lower average house prices than residential property.

If you want to learn more about Manchester property investment opportunities in the student sector, then read our guide to Manchester student property investment.

High Manchester Buy-to-Let Demand From Young Professionals

Students are a mainstay in Manchester, with around 51% of graduates choosing to stay in the city to work, which is the second-highest in the UK.

This has led to a considerable sector of young professionals working in the city, which has continued to propel the housing market even further.

These young professionals have been attracted to the city for three key reasons.

• Living in Manchester is incredibly fun thanks to a lively nightlife scene, a wide range of cultural attractions, and plenty of things to see and do.
• The city boasts a thriving business scene in areas like Spinningfields and Salford.
• The city is incredibly affordable for young professionals.

The second and third points are huge contributors to the rising population.

A whole host of major businesses and start-ups reside in Manchester, offering young professionals lots of opportunities to succeed in the city.

In fact, Manchester and Liverpool were voted in the top 25 locations in the UK for business start-ups by Startups.co.uk.

Record numbers of young people have reportedly been leaving London for Manchester as of late.

London was once considered the place to be for young professionals, but the high cost of living in the capital has led many to look elsewhere.

According to GradTouch, Manchester consumer prices, including rent, are 18.27% lower than in London. This has led to 38% of people leaving the capital to move up North or to the Midlands in 2022, as reported by Landlord Knowledge.

This rise in the Manchester city centre population makes young professionals one of the best tenant groups to target for Manchester property investment.

A major factor behind property investors choosing a property investment in Manchester is the incredible economic growth on offer in the city.

Acting as a global investor community, Manchester property investment offers incredibly profitable investment opportunities thanks to an expanding economy supported by massive levels of high-skill employment.

Here are six reasons you should consider a real estate investment in Manchester.

1. Manchester is Europe’s second-largest cluster of media businesses, the bulk of which is centred around MediaCityUK in Salford Quays – home to the likes of the BBC and ITV.
2. Centre for Cities found that job creation in Manchester outpaced the likes of Berlin, Tokyo, and Paris between 2015 and 2020.
3. Greater Manchester is the largest city region economy outside of London, with a GVA of £62.8bn.
4. Alongside Liverpool, Manchester was voted in the top 25 UK locations for business start-ups.
5. There are over 1.3 million people employed in Greater Manchester, with major industries in manufacturing, life sciences, energy, digital, and finance.
6. Businesses like the BBC have moved to Manchester from London due to the lower running expenses, with Invest in Manchester estimating that Manchester operating costs are 40% lower than London.

All these factors mean that the Manchester buy-to-let market has one of the most exciting futures. As the economy continues to grow, average property prices will rise along with tenant demand, making Manchester’s property market an unrivalled opportunity in 2023.

Manchester is constantly evolving, with ongoing regeneration projects transforming the city and pumping millions into the economy.

Major projects that are set to transform the city include:

• The Northern Powerhouse initiative
• St Johns development
• HS2 Expansion of Manchester Piccadilly
• Ancoats and New Islington Regeneration
• Greengate Manchester

Regeneration in Manchester has helped provide a huge economic boost to the region and create more diverse options for investment property in Manchester.

Property investment in Manchester is thriving partially because of regeneration efforts, as new build buy-to-let properties are constructed as part of these schemes.

But these aren’t the only major projects, past and present, that have transformed the region.

The city’s three major projects have been Spinningfields, NOMA, and MediaCityUK.

In the following section, we will take a deep dive into these three projects to explore the impact they have had on the city.

Spinningfields

Located between Salford and the city centre lies Spinningfields, a regeneration project that has been named Manchester’s answer to London’s Canary Wharf.

First introduced during the early 2000s, Spinningfields saw £1.5 billion go into creating around 430,000 square meters of residential, commercial, and retail space, along with being home to several banks, including Barclaycard and HSBC.

For property investment, Manchester areas that are up and coming with business opportunities are key, which is why Spinningfields is a great Manchester buy-to-let location.

The Spinningfields Manchester postcode of M3 offers some incredibly sizeable yields, with prices starting from around £246,639 and massive returns of 7.30%.

If you want to invest in the future, investing in the Spinningfields Manchester postcode of M3 could be worth your while.

NOMA

A 20-acre mixed-use development that adjoins Victoria Station to the city centre, NOMA is one of the city’s most extensive regeneration zones.

The project involves creating four million square feet of retail, residential, office, hotel, and leisure space.

Backed by the Co-operative Group and driven by a vision of sustainability and urban regeneration, the NOMA scheme has been created to attract more companies to the Manchester area and encourage more investment.

MediaCityUK

At the forefront of Salford’s newfound business focus is MediaCityUK – a thriving business network ranging from major corporations to start-ups and a top area for purchasing buy-to-let property in Manchester.

Once a run-down docklands, MediaCityUK has created a booming investment property Manchester market with plenty of opportunities to cater to local tenant demand.

Ever since the first phase of construction began back in 2007, MediaCityUK has gradually welcomed several organisations like ITV, BBC, RCCIL and BUPA.

Thanks to the significance of MediaCityUK as a top business destination, those looking to invest in buy-to-let in Manchester are naturally drawn to this Salford area, taking full advantage of the opportunities available.

If you want to learn more about Manchester’s regeneration, or regeneration in other UK cities, be sure to check out the UK regeneration guide.