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.