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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 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.

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      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.

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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 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%.

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        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.

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          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.

          Additional resources of interest

          West Quay Royal Arsenal

          2023 UK Market Roundup

          Spotting UK Buy to Let Hot Spots

          Properties see price reduction

          November 2023 House Prices Falling