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

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    An Update on the Manchester Property Market

    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.

    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, 2021 and 2023.

    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.

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      Manchester View

      Manchester Housing Market 2021/23

      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 as of 2023, be sure to check out our latest Manchester property market report.

      Manchester view

      Manchester Property Prices 2021 /23

      As of March 2023, the average house price in Manchester is around £231,626, according to the UK House Price Index.

      This is an increase in value of around 12.82% since 2021

      There was similar growth seen in the wider Greater Manchester market, too.

      Here, the average property price was valued at around £194,507 in 2021.

      Like Manchester city, Greater Manchester has seen property prices increase by a considerable 18.38% in 2023.

      Property prices vary in Manchester depending on what type of property you opt for.

      In fact, the average Manchester property is a considerable £53,383 cheaper than a typical UK property.

      Arrow increase in front of a house model with coins in the background

      Manchester House Prices by Area

      Manchester house prices by area can heavily fluctuate.

      Greater Manchester is a diverse area, with varying price levels on offer.

      How Do Manchester Property Prices Compare to the Rest of the UK?

      Manchester property prices are highly affordable when compared to other major cities in the UK.

      House prices in Manchester are cheaper than those in London where the average is £739,288, Leeds which has an average of £256,028, and Bristol with an average of £394,145.

      Liverpool is one of the only other major UK cities where property prices are lower than Manchester, at £177,803 on average according to the UK House Price Index 2023.

      This is around £53,823 cheaper than the average property price in Manchester.

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      Manchester Rental Market 2021

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

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

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

      In 2023, these figures are now at £1,641 PCM for Manchester, and 1,306 PCM – again both higher than the UK average, now at 1,213 PCM.

      With these figures in mind, the current average rental yield in the city is a whopping 7.78%, with the overall Greater Manchester average sitting at an excellent 7.42%.

      A key with house key chain on a door

      Manchester Rental Market 2021: Rental Yields

      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.

      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 5.11% in 2023.

      Notably, these rental yields are just the average.

      Based on Zoopla data, you can find returns up to 10% in Salford’s M5 postcode.

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


      Manchester Rental Market 2021: Price Growth

      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 2023 a whopping 5.7% 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.

      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 2023.

      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.

      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.

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      Population Estimates for Manchester

      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 house prices will grow by around 11.7% by 2027, and may even surpass this in Manchester given the huge demand for rental property in the region.

      House models with up arrow

      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

      A huge factor behind the ever-growing population and the market growth seen in Manchester is the huge regeneration efforts in the city.

      Manchester is one of the premier UK regeneration areas, and billions has been spent regenerating the previously run-down city into one of the most exciting places to live and work.

      Mega-projects like MediaCityUK and Spinningfields have introduced two world-class business destinations.

      Here, huge organisations like the BBC have left London to open a major base of operations in the Northern Powerhouse.

      It’s no surprise to learn then that Manchester, alongside Liverpool, was voted in the top 10 destinations in the world for business start-ups.

      And with other projects like NOMA, creating four million sq.ft . of retail and leisure space, and a fantastic city-wide tram system, Manchester is one of the most ideal places to live.

      In fact, 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.

      Despite this appealing living and working experience, prices in the area are still affordable.

      Compared to London, the cost of living in Manchester including rent is a whopping 31.85% lower according to Numbeo.

      These regeneration efforts have played a considerable part in Manchester growth, and have completely transformed the city into an internationally recognised destination.

      Stamp Duty sticky note on a key borad

      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.

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

      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.

        Image of 2020

        Manchester Property Prices 2020-2019

        Manchester Property Prices 2020 

        Firstly, let’s take a look at how house prices in the Manchester region behaved in 2020.

        Despite the impact of two national lockdowns over the 12 months, Manchester house prices saw a fairly consistent level of increase given the circumstances.

        As you can see, while there was a consistent dip between March and June 2020 during the first lockdown, prices quickly recovered, and sky-rocketed between June and August by a whopping £19,690 or 11.42%.

        Overall, from January to December, the Manchester average house price increased in value by 9.05%.

        For context, the UK average increased by 7.60%, while London increased by just 3.77%.

        While we’re still not completely out of the dark with the Covid-19 pandemic and the effect it will have on UK-wide and Manchester property prices in 2020, it appears that the resilience of the UK and Manchester housing market is helping to keep things afloat.

        Manchester property news suggests that the market is already showing signs of recovery, and once the situation has improved significantly, the property market is expected to soar further through 2021 and beyond.

        Predictions for the Manchester property market forecast suggest that property prices in Manchester will continue rising for many years to come, despite any minor falls in value along the way that we might experience.

        Investment Levels Remain Strong

        If one thing is for sure about the Manchester property market in 2020, it’s that levels of investment interest in Manchester and many parts of the UK have stayed strong.

        With property market activity experiencing a slow during the height of the Covid-19 pandemic, many investors were able to get a good deal on buy-to-let investments, with lower-than-usual Manchester property prices available.

        A lot of developers introduced discounted rates for their properties as a way to entice investors, while the stamp duty tax holiday enforced in July meant that investors could make huge savings on buy-to-let purchases.

        This has allowed buyers to secure a below-market value property in Manchester or an off-market property in Manchester in 2020.

        Manchester Property Prices 2019 

        Like 2020, 2019 was an incredibly unstable economic year.

        A dark cloud persisted over UK politics, with the uncertainty of Brexit and the question of who should run the country.

        Such uncertainty was seen directly in house prices over the course of 2019.

        As you can see from the graph, house prices between January and July remained fairly consistent, with slight peaks and troughs throughout the six months.

        Property prices started to rise from July onwards, although growth levels were minimal.

        Between July and August, house prices increased by just 1.85%, with an overall increase in the year of only 3.31%.

        However, after the December 2020 election, which saw stability return to UK politics with a strong conservative majority, house prices increased in 2020.

        A similar trend was seen in the wider UK market, with average UK house prices increasing by only 1.52%.

        This again highlights Manchester’s continued trend of outperforming the wider UK market.

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        Manchester Property Prices 2018

        Like 2019, 2018 had fairly minimal house price compared to the soaring highs of 2020.

        However, monthly prices were significantly higher year-on-year.

        For instance, prices in June 2018 were 9.80% higher than a year prior, while May prices were 9.07% higher.

        House prices across the year increased by just under £8,500 or 4.96%.

        Between the end of 2018 and 2019, then, Manchester average house prices increased in value by 3.56%.

        Again, Manchester outperformed other UK locations, with the average UK property increasing by just 2.31% over 2018.

        Manchester Property Price Growth in 2017: How Did House Price Trends 2017 Impact Manchester?

        In 2017, Manchester property news headlines revealed the city as hosting the third most valuable housing market in the UK, with houses in the city boasting a value of £133 billion.

        This was due to the sharp spike in house prices Manchester saw in 2017, with a 9.12% rise in the 12 months to December.

        The strength of the Manchester housing market has led to a focus on this Northern city for UK investments, attracting large numbers of investors from around the world.

        Manchester house price trends for 2017 helped to encourage a future focus on Manchester as a property investment city.

        Manchester’s property market has continued gaining momentum ever since 2017 and is now one of the top property hotspots in the UK thanks to the ongoing growth and strength of Greater Manchester house prices.

        In fact, the Manchester market saw a year-on-year increase of 10.45%, 10.69%, and 10.52% for October, November and December, respectively.

        Many credit 2017 for the year that made investors take notice of the Manchester market’s potential.

        Since then, it has continued to grow and thrive.

        Between 2017 and 2023, prices have increased in the city by a staggering 44.7%.

        Manchester House Price Trends Since 2016

        Now that we’ve looked in detail at the average house price in Manchester over the last few years, let’s compare prices over the last five years.

        Over the last five years, Manchester growth has reached extraordinary levels with a consistent increase every year.

        From 2016, the average house price in Manchester was valued at £147,888.

        Fast-forward to 2023, and house prices have seen a 56.64% increase.

        Almost all other UK cities pale in comparison to these growth levels.

        Over the same period, London prices saw a lesser increase by 10%,  from an average of £475,442 to £523,325, according to Land Registry data.

        Other popular cities like Leeds, Liverpool, Newcastle, Birmingham, and Sheffield all couldn’t reach the huge growth levels of Manchester.

        Each city saw house prices increase by 39.87%, 49.10%, 27.75%, 38.50%, and 43.69% respectively.

        This trend was seen over the last 10 and 20 years, too, with Manchester prices excelling in capital growth rates.


        How Much Did the Average House Price in Manchester Increase over a 10 Year Period?

        Manchester’s average house price increase in the last 10 years – from 2011 to 2021 – was 67.97%, according to data from House Price Index.

        That results in an added value of around £80,625 onto the Manchester average house price.

        This percentage goes to show how much the average house price Manchester generates has grown yearly and hints at similar growth in the future.

        Looking back further still, between 2001 and 2021, the average house price in Manchester was just £44,813.

        That means prices in the last 20 years have increased by a staggering 344.59%, or an added value of £154,422.

        From 2003 to 2023, Manchester prices increased by 288.41%, further illustrating this growth.

        London’s capital growth, in particular, has been incredibly poor over the last few years. While the growth rates over 20 years are some of the best in the UK, prices over the last five years have decreased by a staggering 11.79%.

        London has traditionally been seen as the premier property destination in the UK.

        When you look at London house prices graph over 10 years, you can see why this was initially the case.

        Between February 2013 and February 2015, house prices skyrocketed by a whopping £261,343.

        However, capital growth rates have dropped drastically as house prices gained value.

        From the February 2019 peak of £894,520, prices dropped by £291,211 to £675,309.

        That is a percentage drop of -24.51%.

        If you’re interested in the best capital growth rates, Manchester is the prime location.

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        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.

        Question mark with black background

        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 2027, 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 11.7% by 2027.

        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.

        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-tolet, Manchester growth is also expected for rental yields.

        The average rental yield in Manchester currently stands at 8.50%.

        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.

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

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          Up and Coming Areas Manchester 2021 and Beyond

          Manchester is a complex city, with plenty of thriving areas worth investing in.

          To help you work out what the best places to invest are, we have listed some of the top up and coming areas Manchester wide.

          1) Salford

          Average property price: £238,502

          Average rental yield: 7.46%

          Perhaps one of the best up and coming areas Manchester is Salford.

          The area has been transformed over the last decade thanks to significant regeneration efforts and continues to grow and thrive.

          One of the major attractions to Salford is the fantastic MediaCityUK.

          First opening in 2007, the area was a massive regeneration effort that has since attracted some of the biggest names in the media business like the BBC and ITV.

          Other regeneration zones like Greengate Salford Manchester, home to our new property investment opportunity Embankment Exchange, are gaining attention from investors.

          With Salford just a five minute walk from Manchester city centre, and massive growth expected in the coming years, the city has a tonne of potential and is worth keeping an eye on.

          2) Wigan

          Average property price: £167,011

          Average rental yield: 6.14%

          Another of the best up and coming areas Manchester that often goes under the radar is Wigan.

          Located to the northwest of Manchester, Wigan is one of the most affordable locations for investors and residents alike.

          Monthly rent here is just £855, with property prices starting at only £167,011, according to Zoopla.

          These incredibly low prices give ample opportunity for growth, with the likelihood of more and more residents moving to the area to take advantage of the low prices.

          While it isn’t the best investment location out there, it certainly has the potential to thrive and should be monitored closely.

          3) Tameside

          Average Property Price : £209,467

          Average Rental Yield: 4.41%

          Found to the east of Manchester is Tameside.

          Again, like Wigan, Tameside is fantastically affordable with prices under the £170,000 mark.

          Rent here is valued at just £770 a month, with the potential to earn almost 5% returns on your investment.

          Like Wigan, these incredibly low prices make the likelihood of growth incredibly high, with prices already increasing by 8.64% over the past 12 months.

          Tameside is certainly one of the best up and coming areas Manchester, and should be kept in mind by investors for the future.

          4) Manchester city centre

          Average property price: £248,083

          Average rental yield: 8.84%

          You may be surprised at its inclusion on this list, but the reality is Manchester city centre has so much more room to grow despite already being established as a thriving property location.

          Capital growth and rental appreciation in the city centre is like no other in the UK.

          Plus with one of the youngest average tenant profiles, the room to grow is off the charts.

          The future is incredibly bright for the Manchester region and if you want to invest in one of the best up and coming areas Manchester that is already thriving, then the city centre is the ideal spot for you.

          Manchester 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 £231,656.

          Yes, house prices are rising in Manchester.  Savills has predicted house prices in the North West region will increase by 20.2% by 2028.

          The average rent in the Manchester property market costs £1,641 pcm, according to

          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 £167,011 up to £198,039.

          On the other hand, the most expensive area is Stockport, where house prices are £277,876.

          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.

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            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.

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            Reece Pape

            Reece Pape is a property writer at RWinvest. Reece is passionate about keeping property investors updated on must-have information and housing market news, utilising the latest property market statistics and data.


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