Manchester Property Growth – How is the Manchester Housing Market Performing?

When it comes to UK cities, none have come close to the growth levels seen in Manchester. In a 20-year period Manchester has surpassed all others when it comes to property growth and now sits on top as one of the premier investment locations in the UK. But how did this happen? Keep reading our ultimate guide to learn more.

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    One of the chief UK cities for property growth, the Manchester property market is thriving.

    Property prices in this Northern Powerhouse have risen drastically over recent years, with predictions to increase even further.

    From huge regeneration efforts to an ever-expanding young population, prices in the city continue to grow each year with no signs of slowing down.

    In this detailed guide to the Manchester housing market, we’ll take a look at data that outlines this growth and makes Manchester property investment such an exciting prospect.

    Contents

    Manchester Property Prices 2021
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    Manchester Property Prices 2021


    Manchester Rental Market 2021
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    Manchester Rental Market 2021


    Manchester Growth
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    Manchester Growth


    Manchester House Prices Over Last 5 Years
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    Manchester House Prices Over Last 5 Years


    We’ll explore past house price trends in 2017, details of the property market in 2018, and Manchester house price trends of the last 10 years.

    This guide will also look at the Manchester property market forecast for the coming years, and how Manchester house prices have been performing throughout 2020 and 2021.

    If you’re interested in learning more about the Manchester property market and Manchester average house price statistics, continue reading our helpful and detailed guide.

    Manchester Housing Market 2021 

    To start with, let’s look at some information on the Manchester property market.

    In the last few decades, the Manchester housing market has experienced some fantastic growth and now sits as one of the premier property destinations in the UK.

    In the following section, we will take a look at the current market statistics in the Northern Powerhouse, such as the average house price in Manchester, how much it costs to live in the city, and how Manchester property prices compare to the rest of the UK.

    To see more information on how the city is performing in 2021, be sure to check out our latest Manchester property market report.

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    Manchester Property Prices 2021

    Manchester Rental Market 2021 

    Based on the latest Zoopla data, the current average rent in Manchester is £1,101 in April 2021.

    The average rent is slightly lower in Greater Manchester, standing at a current £1,041 PCM.

    Both rental figures are higher than the UK average, which is valued at £922 by the Homelet Rental Index.

    With these figures in mind, the current average rental yield in the city is a whopping 6.63%, with the overall Greater Manchester average sitting at an excellent 6.42%.

    Rental yields are one of the most important aspects of property investment, and shows the percentage return on investment earned through rent. It’s calculated by dividing the yearly rental income by the purchase price and multiplying by 100 for a percentage.

    House vs Flats Prices in Manchester House vs Flats Prices in Manchester

    Generally, rental yields between 5 and 6% are good, highlighting the regions strong performance.

    In fact, the UK as a whole is only generating average rental yields of just 4.42%.

    Notably, these rental yields are just the average.

    Based on Zoopla data, you can find returns up to 10.64% in Salford’s M5 postcode.

    Of course, rental figures also change depending on what property type you invest in.

    In the following table, you will find monthly rental income for properties in Manchester based on property type and the number of beds.

    Average Rent North West 2020/21 Average Rent North West 2020/21

    Manchester growth has been substantial over recent years, particularly in the rental market.

    Currently, the Manchester area and the wider North West region has seen rent prices soar over the last 12 months, with prices in March 2021 a whopping 6.8% higher than a year prior.

    Due to the Covid-19 pandemic, and many people experiencing financial troubles, rent prices fluctuated consistently over 2020, making it more surprising Manchester has seen such significant growth compared to 2020.

    Take a look at the following graph of North West rent prices over 2020 and 2021, according to the Homelet Rental Index.

    Manchester Rental Market Manchester Rental Market

    As you can see, while rental costs dipped during the initial national lockdown period, rent soon recovered and started to increased for the following months, until reaching a peak of £788.

    Since the dip of March 2020, rent prices increased by £50 per month.

    While this growth may seem minimal on the surface, when you compare it to a major city like London, you realise just how well Manchester and the North West is performing in 2021.

    In fact, London rent in March 2021 has dropped by a staggering 45.2% year-on-year.

    Why is the North West and Manchester growth so high in both house prices and the rental market?

    Well, there are a variety of factors contributing to Manchester’s rise in the property market.

    These factors include a growing population, massive regeneration efforts, and huge savings for homebuyers through the stamp duty tax holiday.

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    Manchester Growth: An Emerging Young Population 

    In the property world, prices for both homes and rent tend to increase with rising demand, and there isn’t a city in the UK with such high demand as Manchester.

    A study from Zoopla in 2020 found that the ratio between supply and demand of properties in Manchester was a staggering 1:5.

    A major reason for this colossal demand is the ever-expanding population in the city.

    Between 2006 and 2016, the population of Greater Manchester grew by an astonishing 7.7%, which was double the growth rate of the rest of the UK.

    Manchester Property Market Growth Manchester Property Market Growth

    This growth rate was seen in Manchester, too, with a 27.8% increase in population size since 1991.

    A bulk of this expanding population is from young people.

    Manchester is one of the definitive student cities. Featuring the largest student population in Europe, the Northern powerhouse features over 100,000 students across five top universities.

    Notably, while students are choosing to live in Manchester for their education, they also choose to stay after their studies, with the city having the second-highest graduate retention rate in the UK.

    Over 51% of students choose to stay and work in Manchester after graduation thanks to the fantastic living experience and business opportunities on offer.

    Population Estimates for Manchester graph

    Looking at population estimates from Manchester’s local government, a staggering 37% of the population is aged between 18-34.

    A young population is significant for property market’s, particularly the rental sector.

    Often referred to as Generation Rent, those in this age bracket typically rent over purchasing a property due to the inability to afford hiking house prices.

    With such a concentration of Generation Rent members in the city, the rental market continues to flourish in the region.

    Predictions from Savills have estimated rent prices will grow by around 17% by 2025, and may even surpass this in Manchester given the huge demand for rental property in the region.

    Manchester Population Growth and the Manchester Property Market Manchester Population Growth and the Manchester Property Market

    What Does Manchester Population Growth Mean for Property Prices? 

    Manchester population growth contributes a lot to house prices in the Manchester property market.

    The more people that live in Manchester, the more demand there will be for properties, which leads to significant growth in Manchester property prices due to insufficient supply.

    While a higher population means an increase in house prices in Manchester, it will also cause the average rent in Manchester to rise.

    This is good news for buy to let investors, resulting in a boost in the already high rental yields in the area.

    This means that if an investor is able to purchase a below market value property in Manchester, they’re likely to generate some impressive rental yields due to the consistently high cost of rent in the city.

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    Manchester Growth: Massive Regeneration

    Manchester Growth Stamp Duty Tax Holiday Manchester Growth Stamp Duty Tax Holiday

    Manchester Growth: Stamp Duty Tax Holiday

    Another considerable factor that helped promote continued growth in Manchester and the rest of the UK despite the impact of Covid-19 has been the stamp duty tax holiday.

    Stamp duty is a tax paid when you purchase a property in England and Northern Ireland. It has a different name in Scotland and Wales, with different rates, but the principle is still the same.

    While Covid-19 called into question the stability of the UK economy, the UK chancellor cut tax rates for stamp duty tax to help promote continued activity in the real estate market.

    This worked to great effect with property purchases continuing throughout the year.

    Stamp Duty Tax Holiday Rishi Sunak Stamp Duty Tax Holiday Rishi Sunak

    On average, investors were able to save £4,500 on property purchases, with some able to save up to a whopping £15,000.

    The holiday is still in effect, with the stamp duty tax holiday set to finish at the end of June 2021.

    If you want to take advantage of these savings, be sure to act before this date to get the best property deal possible.

    If you want to learn more about stamp duty, be sure to check out our guide and use our stamp duty calculator to work out how much money you will pay on your next property purchase.

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    Manchester Property Market Growth 

    So how has the Manchester property market grown in value over recent years?

    Data from the Hometrack House Price Index shows that Manchester property prices are growing in value at a rate of 3.4% annually.

    That’s higher than the UK average which stands at 2.1% and significantly beats London’s annual growth rate of 0.9%.

    Let’s take a look at some statistics and figures on Manchester property prices and how much they’ve increased throughout the last 20 years.

    Manchester Property Prices 2020-2019

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    Manchester was voted the best UK city to live in, according to the Global Liveability Survey. The survey scores 140 cities across the globe based on factors like health care, education, culture, environment, and infrastructure.

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    Manchester Property Market Forecast  Manchester Property Market Forecast 

    Manchester Property Market Forecast 

    After looking at past trends of Manchester property price growth, it’s clear that this Northern city is thriving and that the Manchester housing market has experienced some huge growth over recent years.

    But what about the future of house prices in Manchester?

    Here is some information on the Manchester property market forecast over the coming years, with details on the level of the average property price growth Manchester is set to see.

    Manchester Salford Quays Manchester Salford Quays

    Manchester Property Market Forecast: Will House Prices Rise in Manchester? 

    The Manchester property market forecast suggests that Manchester house prices will continue to grow.

    By 2025, Manchester property prices are to increase more than any other location, according to Savills.

    Manchester and the North West region as a whole are expected to rise dramatically with a boom of 28.8% by 2025.

    This is higher than any other region and is 7.7% higher than the UK average.

    This suggests that along with Manchester property prices, the other key North West city of Liverpool is set to experience some attractive house price growth.

    In 2021, Savills believes property prices in the North West will rise by 4.5%, with a 6% increase in 2022.

    These are some of the highest levels in the UK, with only Yorkshire and The Humber close, with similar growth rates.

    Manchester Property Market Forecast: Will Rental Yields Grow in the Manchester Property Market? 

    When it comes to buy to let, Manchester growth is also expected for rental yields.

    The average rental yield in Manchester currently stands at 6.63%.

    Over past years, rental costs have increased, having recently grown by 6.8% over the last year.

    This goes to show that high levels of demand for Manchester rental properties have led to higher rental prices, which ultimately leads to some attractive yields.

    With such big plans for regeneration in store for Manchester, combined with a thriving business scene, the buy to let market in Manchester is sure to generate high yields for many years to come.

    Savills’ predictions have forecasted a considerable increase in rental prices of 17% by 2025.

    This will no doubt impact the Manchester market, and will help promote further rental growth in the near future.

    Up and Coming Areas Manchester 2021 and Beyond

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    FAQs

    The best places to live and invest in Manchester are the city centre, Salford, Spinningfields, Northern Quarter, Ancoats, and many others. Manchester is one of the best places to live in the UK, and has been voted the best UK city to live in, according to the Global Liveability Survey.

    The most up and coming Manchester locations are Salford, Wigan, Tameside, and Manchester city centre.

    Manchester is one of the fastest-growing cities in the UK. The Manchester economy has grown twice as fast as London’s since 2014 and is currently the fastest-growing tech city in Europe.

    Manchester features one of the largest economies in the UK with a total reported GDP of £62 billion.

    Manchester is one of the best places to live, with tonnes of local amenities on offer. The city was voted the best to live in the UK, according to the Global Liveability Survey, which scores hundreds of cities around the world based on factors like health care and culture.

    According to the UK House Price Index, the average house price in Manchester is £199,235. This is over £50,000 cheaper than the average house price in the UK.

    Yes, house prices are rising in Manchester. In the past 12 months, the average house price in Manchester has increased by 11.40%. Savills has predicted house prices in the North West region will increase by 28.8% by 2025.

    The average rent in the Manchester property market costs £602 based on the average price to live in the top ten Greater Manchester areas.

    According to Numbeo, the cost of living in Manchester for a family of four without rent is around £2,374.29. For a single person, estimated monthly costs excluding rent are just over £681.

    This is slightly more expensive than the cost of living in Liverpool by 6.15%, but is 15.43% lower than London excluding rent.

    The lowest Manchester house prices by area are Rochdale, Wigan, and Bolton. Here, you can expect property prices ranging from £150,053 up to £154,757.

    On the other hand, the most expensive area is Stockport, where house prices are £256,275.

    The up and coming areas in Manchester for 2018 were those with the highest rental yields, including Salford, Tameside, and Manchester city centre.

    These areas have a lot of potential in terms of growth and opportunities, and still continue to develop as property hotspots to this day.

    In 2019, the up and coming areas were those within buzzing regeneration hotspots like Salford and Manchester City Centre.

    With buy to let, investors tend to focus on purchasing properties in areas that attract a lot of demand from desirable tenants like young professionals or students.

    Since these two areas are home to a wide range of business opportunities, along with being close to the city’s universities, they gained a reputation as the best up and coming areas in Manchester for 2018 and 2019.

    What Are the Best Areas in Manchester?

    The best places to live and invest in Manchester are the city centre, Salford, Spinningfields, Northern Quarter, Ancoats, and many others. Manchester is one of the best places to live in the UK, and has been voted the best UK city to live in, according to the Global Liveability Survey.

    Where is Up and Coming in Manchester?

    The most up and coming Manchester locations are Salford, Wigan, Tameside, and Manchester city centre.

    Is Manchester the Fastest Growing City?

    Manchester is one of the fastest-growing cities in the UK. The Manchester economy has grown twice as fast as London’s since 2014 and is currently the fastest-growing tech city in Europe.

    Is Manchester a Rich City?

    Manchester features one of the largest economies in the UK with a total reported GDP of £62 billion.

    Is Living in Manchester Good?

    Manchester is one of the best places to live, with tonnes of local amenities on offer. The city was voted the best to live in the UK, according to the Global Liveability Survey, which scores hundreds of cities around the world based on factors like health care and culture.

    What is the Average House Price in Manchester?

    According to the UK House Price Index, the average house price in Manchester is £199,235. This is over £50,000 cheaper than the average house price in the UK.

    Are House Prices Rising in Manchester?

    Yes, house prices are rising in Manchester. In the past 12 months, the average house price in Manchester has increased by 11.40%. Savills has predicted house prices in the North West region will increase by 28.8% by 2025.

    What Does it Cost to Live in Manchester?

    The average rent in the Manchester property market costs £602 based on the average price to live in the top ten Greater Manchester areas.

    According to Numbeo, the cost of living in Manchester for a family of four without rent is around £2,374.29. For a single person, estimated monthly costs excluding rent are just over £681.

    This is slightly more expensive than the cost of living in Liverpool by 6.15%, but is 15.43% lower than London excluding rent.

    What Are the Lowest Manchester House Prices by Area?

    The lowest Manchester house prices by area are Rochdale, Wigan, and Bolton. Here, you can expect property prices ranging from £150,053 up to £154,757.

    On the other hand, the most expensive area is Stockport, where house prices are £256,275.

    What Were the Up and Coming Areas in Manchester 2018?

    The up and coming areas in Manchester for 2018 were those with the highest rental yields, including Salford, Tameside, and Manchester city centre.

    These areas have a lot of potential in terms of growth and opportunities, and still continue to develop as property hotspots to this day.

    What Were the Up and Coming Areas in Manchester 2019?

    In 2019, the up and coming areas were those within buzzing regeneration hotspots like Salford and Manchester City Centre.

    With buy to let, investors tend to focus on purchasing properties in areas that attract a lot of demand from desirable tenants like young professionals or students.

    Since these two areas are home to a wide range of business opportunities, along with being close to the city’s universities, they gained a reputation as the best up and coming areas in Manchester for 2018 and 2019.

    Ready to Take Advantage of Property Prices Manchester?

    If you’re interested in the house prices Manchester offers, and the city’s overall property market strength, contact RWinvest.

    We have a range of fantastic investment opportunities in Manchester to choose from, with below market value property in Manchester and developments based in up and coming areas and with predictions for huge growth.

    If you’re ready to take advantage of Manchester property market growth and affordable Manchester property prices, get in touch today for the best deals.

    Learn about Manchester property investment and its benefits with our detailed guide.

    Disclaimer: This guide was last updated in May 2021. Property prices can constantly fluctuate so the data provided may no longer be accurate upon reading.

    Invest With £69k

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    Prices from £429,950

    Manchester Prices from £429,950

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    In-demand Manchester location

    Off-Market Property
    Manchester Prices from £200,000

    5% Projected Rental Return

    £15k Price Increase Looming

    Desirable Manchester Location

    Embankment Exchange

    80% Units Sold

    Manchester Prices from £209,950

    6% Projected Rental Returns

    Up to 34% Below Local Comparable

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