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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

    As one of the UK’s most prominent cities with a growing population, the Manchester property market is definitely one to watch.

    Rising property prices, predictions for ongoing growth, and huge regeneration are just some of the reasons why Manchester property prices continue to rise each year.

    In our guide to Manchester’s housing market, we look at how the market has performed and identify what makes this city such a prime investment hotspot.

    This guide will also examine the Manchester property market forecast for the coming years and how Manchester house prices have performed throughout 2024.

    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 Housing Market 2024

    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 fantastic growth and is now one of the premier property destinations in the UK.

    In the following section, we will examine 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 2024, be sure to check out our latest Manchester property market report.

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      Manchester Property Prices 2021 - 2024

      According to the UK House Price Index, the average house price in Manchester was around £250,623 as of September 2024.

      This is an increase in value of around 16.35% since 2021.

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

      Here, the average property price was valued at around £209,548 in 2021. Like Manchester, Greater Manchester has seen property prices increase by a considerable 16.66% by 2024.

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

      In fact, the average Manchester property is a considerable £41,205 cheaper than a typical UK property.

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      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 could be considered more affordable when compared to other major cities and investments in the UK.

      Looking at the figures from the UK House Price Index, house prices in Manchester are cheaper than those in:

      • London – which sees an average of £525,586.
      • Leeds – which sees an average of £246,811.
      • Bristol – which sees an average of £354,210.

      Liverpool is one of the few other major UK cities where property prices are lower than Manchester, at £185,535 on average.

      This is around £65,088 cheaper than the average property price in Manchester.

      See our guide to the best buy-to-let areas in Manchester.

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        Manchester Rental Market 2024

        Based on the latest Zoopla data, the average rent in Manchester was £1,088 in September 2024.

        This figure is slightly below the UK average, which was valued at £1,327 in October 2024 by the Homelet Rental Index.

        Zoopla also puts the current gross rental yield in Manchester at 6.53% – just above the UK’s average of 5.60%.

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          Manchester Rental Market 2024: Rental Yields

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

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

          As mentioned, Zoopla states the UK generates an average gross yield of 5.60% in 2024.

          Notably, these rental yields are just the average.

          Based on the latest house price and rent data from Zoopla and Houses For Sale & To Rent, you can find returns up to 7.95% in Salford’s M5 postcode.

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

          Combining data from ONS and Zoopla, the average rental figure/gross yield for each property type is:

          • Flats & Maisonettes: £1,058 PCM (6.45%)
          • Terraced Properties: £1,292 PCM (6.94%)
          • Semi-Detached Properties: £1,382 PCM (5.68%)
          • Detached Properties: £1,752 PCM (4.58%)

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            Manchester Rental Market 2024: Price Growth

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

            In January 2024, the Land Registry valued average Manchester property prices at £242,899. This was over £34,000 cheaper than the UK average and over £268,000 cheaper than London.

            The most recent September data shows an increase of 3.18%, which is still below the current UK average (£291,828). This affordability is emphasised when you compare central city-centre locations.

            According to Zoopla, the average sold price for a property in Manchester in the last 12 months is around £250,400. For comparison, the average London property sees a hefty price of around £685,713 – a difference of 173.85%.

            For property investors targeting long-term house price growth, average property prices in Manchester are soaring at an incredible speed. In the last five years, the average Manchester property has increased by a whopping 30.99%, with a 20-year recorded growth rate of 184.46%.

            According to Colliers, Manchester is the highest-ranking city in England for residential investment. Their report reveals that Manchester has seen record house price growth of 33% over the past five years, far outstripping the report’s 20-city average of 15%.

            Colliers projections also forecast the city to see 2.2% GDP growth annually for the next five years, which is higher than the overall 20-city average of 1.8%.

            According to Savills, the entire North West region is expected to see the highest capital growth rate in the UK, with prices expected to rise by 29.4% by 2029. London, in comparison, is expected to see 17.1% growth.

            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 that contributed to Manchester’s rise in the property market over the last few years.

            To name a few:

            • Growing population numbers.
            • Massive regeneration efforts.
            • Huge savings made by homebuyers through the stamp duty tax holiday from July 2020 until the end of June 2021.
            Young professional working from home in rental property

            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 recent Rightmove ranking exploring the busiest rental markets in the UK found that Manchester saw upwards of 41 enquiries per available rental property.

            A major reason for this imbalance between supply and demand is the ever-expanding population in the city.

            In the ten years between 2011 and 2021, Manchester’s population increased by 9.7% – the third-largest percentage increase in the North West. The median age in Manchester is 31, which is the youngest in the region. Manchester’s young population has helped drive a rental market boom, as this demographic is most likely to rent.

            Manchester also has the highest graduate retention rate outside of London. Over 51.5% of students from Manchester universities choose to remain in the city after graduation, resulting in a continuous flow of young working renters to target.

            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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              Forecast for 2025

              So, what does the future hold for the Manchester property market?

              We've gathered the latest research and analysis to provide a comprehensive forecast for 2025 and beyond.

              According to JLL’s Residential Forecast, Manchester is projected to be the second-strongest city for house price growth from 2025 to 2028, beaten only by Birmingham. The report estimates that average prices will increase by 19.3% across the next 4 years.

              Rental prices in Manchester are expected to remain stable or slightly increase in 2025. Strong demand from students, young professionals, and businesses relocating to the city is likely to support rental growth.

              However, increased supply from new developments could moderate price increases.

              According to EY’s 2024 Regional Economic Forecast, Manchester is poised to lead the UK in economic growth from 2024 to 2027, with an annual average growth rate of 2.2%, surpassing the national average of 1.9%. The only other major town or city to see faster growth over the same period will be Reading (2.5%).

              Manchester is also expected to witness significant job growth, with employment rates increasing by 1.7% annually. By 2027, the city’s Gross Value Added (GVA) is projected to increase by over £2.4 billion, fueled by the rapid expansion of its tech industry, particularly the information and communication sector, which is expected to grow at a rate of 2.4% per year.

              Several key developments are expected to drive Manchester’s growth in 2025:

              • MediaCityUK: This thriving media and technology hub continues to attract major broadcasters and digital companies, creating jobs and boosting the local economy. The next phase of development will introduce thousands of new homes and commercial spaces, enhancing the district’s appeal and potential.
              • Spinningfields: This prestigious business district offers high-quality office space and attracts leading financial and professional services firms. With 10,000 new jobs and a significant economic impact of £1 billion, the area continues to thrive and expand.
              • NOMA: This £800 million central Manchester development project is one of the largest of its kind in the North West. By 2029, NOMA is expected to create up to 6,000 jobs and contribute £380 million annually to the city’s economy.

              Why Choose RWinvest To Invest In Manchester?

              RWinvest is an award-winning property investment company with 20 years of experience in residential buy-to-let and off-plan property.

              Contact us today to discuss your investment goals and explore our wide range of Manchester property options:

              Additional Resources:

              Manchester Investment Guide
              Manchester Named First-Time Buyer Hotspot
              What Does MediaCityUK Phase 2 Mean for Manchester Property Investment?
              Manchester Called Best English City for Residential Property Investment

              Manchester Investment, Market & Investment Trends

              Manchester Property Growth - Explore the benefits of buy-to-let properties.