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Manchester Property Market Forecast 2023 Shows Strong Growth Ahead

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    Interested in Manchester Property Investment?

    If you’re thinking of investing in Manchester property, staying in the know on everything related to the Manchester property market is essential.

    It can be tricky to stay on top of the latest Manchester property news, and that’s why we’ve put together this guide to Manchester property market predictions for 2023 and beyond to help you stay informed.

    Whether you’re investing in Manchester this year or simply researching whether Manchester property investment is right for you, this guide will offer information and statistics from a range of reputable sources.

    Keep reading to discover:

    • Manchester property market forecast predictions.
    • Manchester rental market predictions.
    • Manchester property market performance over the last 20 years.
    • What’s causing Manchester property market growth?
    • FAQs about the Manchester property market.

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      The Average Manchester Property Price in 2023

      The latest data compiled by the Land Registry House Price Index in May 2023 states that the average house price in Manchester is £231,656.

      You’re probably wondering:

      Is this considered affordable? And is Manchester’s property market a good option if you’re looking to make a low-cost investment?

      Well, when comparing Manchester’s average price with that of three different UK capitals – London, Glasgow, and Edinburgh – Manchester’s average house prices are highly affordable.

      London’s average property price stands at £523,325 as of May 2023, while Cardiff and Edinburgh have average prices of £265,993 and £324,262, respectively.

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      Manchester Property Market Forecast 2023 and Beyond

      When it comes to property growth, it’s difficult to find a better location than Manchester.

      The North West city has dominated growth charts over the last 20 years and has surpassed every other major UK city.

      But can this growth continue into 2023? And what about the coming years?

      Knowing whether future capital growth is expected is essential for investors considering making a Manchester investment in 2023.

      Let’s look at what the industry experts anticipate for the Manchester property market and the broader UK market, with the latest Manchester property market forecast for 2023 and the UK housing market forecast.

      Manchester Property Market Forecast 2023: Property Price Predictions

      Looking at Manchester house price predictions from industry-leading experts, the city is on its way to seeing some of its highest-ever growth over the next several years. This includes a huge expected rise in house prices throughout 2023.

      Here’s a quick summary of what you need to know:

      • Savills predicts average property prices in the North West region will grow by 11.7% by 2027.
      • Rental values are forecast to grow 4% on average in 2023, according to JLL’s Manchester residential market forecast.
      • Oxford Economics predict Manchester to have the highest economic growth of all UK cities over the next five years, with a growth rate of 16.4%.

      Now:

      Let’s dive into these statistics a little deeper.

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      Five-Year Manchester Residential Market Property Price Growth

      Savills regularly update their residential market forecasts with predictions for house price growth across the different UK regions.

      The past few market reports from Savills have predicted positive things for the Manchester real estate market, with the North West region consistently ranking in the top place for average house price growth.

      Their latest report has predicted an average growth of 11.7% for North West property prices by 2026.

      Tied with Yorkshire and the Humber, and the North East, this makes the North West one of the top regions to invest in terms of growth.

      The average predicted five-year growth rate for the UK overall is 6.2%.

      As evidenced by the graph of Savills predictions, there’s a clear North vs South divide when it comes to house price predictions, with Southern parts of England (most notably London) set to see the lowest property market growth.

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        Manchester Rental Prices Set to Rise

        In their 2022 report, JLL  predicted an expected 4% average growth for rental values in Manchester.

        A big part of the Manchester residential market is its rental market, and this is also a huge reason why so many investors are keen to invest in this Northern powerhouse city.

        Compared to other cities known for their rental markets, Liverpool and Leeds, the Manchester property market forecast see Manchester hitting the top spot.

        These cities follow closely behind Manchester’s expected rental value increase with just 3% rental market growth.

        Alongside these predictions, it’s also worth noting that the Manchester housing market saw record-high rent prices in January 2022, rising consistently throughout the region from April 2021.

        Studio apartments, in particular, saw an increase of around 10% (£76pcm) in only one quarter, taking the average studio rents to above £800pcm for the first time.

        With such a substantial rise in rent, there is no indication of a dip in the Manchester rental market any time soon.

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        Predictions of 4.5% Growth For Manchester in 2023

        In the same residential market report from JLL, Manchester property market forecast 2022 predictions reveal a 4.5% growth in 2023.

        This is another area that Manchester is set to outperform compared to other UK areas, with a higher predicted growth rate than Liverpool and Leeds.

        So: what does this mean for investors?

        Well, for those who already own Manchester investment properties, it’s a sign that the market is heading in the right direction for capital growth.

        And for those who have yet to invest in Manchester, it’s a sign that now is the time to do so. That is, if you want to secure an investment property in this top city while prices are still affordable and benefit from enhanced capital appreciation further down the line.

        Manchester Expected to See Highest Economic Growth Rate

        When it comes to investing or even buying property in general, it’s essential to know that the economy of the area you’re buying into is solid.

        Cities and towns with a thriving economy offer the best chance of a strong property market.

        So: what do we know about the Manchester economy?

        According to Oxford Economics, Manchester will experience a GVA growth of 16.4%. That’s the highest in the country.

        As the economy continues to grow, average property prices will no doubt rise alongside it.

        Throw in an increased tenant demand as well, and it’s clear that the Manchester housing market is an unrivalled venture for 2023 (and beyond).

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          Past Manchester Property Market Performance

          When looking at future growth potential, it’s good to look at how property prices have performed in the past.

          Why is this?

          Put simply, if there has been consistent growth in an area over the last 20 years, this is a strong indicator that you can expect further development in the future.

          Over the last five, 10, and 20 years, Manchester property has seen consistent and considerable growth.

          Let’s explore this in more detail by analysing Manchester property market performance between 2001 and 2021.

          What Happened to the Manchester Property Market in 2020?

          To give some context behind the growth rates anticipated for Manchester, it’s essential to understand what happened to the UK property market in 2020 and 2021.

          At the start of 2020, outlooks for the UK property market were largely positive, with Boris Johnson’s landslide electoral victory in December 2019 increasing market stability and confidence.

          No one could have expected what was to follow, though, with the country hit with an unprecedented lockdown following the beginning of the Covid-19 pandemic.

          Property market activity took a slump from March 2020, and many were fearful that the housing market was heading for a crash.

          But what actually happened?

          As we know, despite these negative claims and gloomy predictions, 2020 marked the start of a huge property market boom across the country.

          By July 2020, Savills found that property interest had increased by 60% compared to the 12 weeks before lockdown.

          These growth levels were mirrored in the Manchester market, which saw significant house price growth over the 12 months in 2020.

          The trend shown in Manchester is almost identical across every property type.

          While there was an initial dip in the first six months, house prices started to see a strong increase over the latter part of the year.

          The average Manchester property initially started at £182,906 before rising to £200,242 in December 2020, a percentage increase of 9.48%.

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          What Happened to the Manchester Property Market in 2021?

          Between 2020 and 2021, Manchester’s real estate market growth continued even further.

          Manchester property news has revealed headlines such as ‘Manchester continuing to prove itself as a top global city’ and ‘Manchester’s property prices keep moving on up’, putting a lot of attention on this Northern hotspot throughout last year.

          According to Land Registry data, Manchester’s average house price increased by 6.7% between November 2020 and November 2021.

          And it wasn’t only property prices that stood out for the city in 2021, as Manchester also broke records for its rental market.

          In a report from Urbanbubble in October, it was found that just 427 flats were reportedly available to rent in the city, with rental demand through the roof.

          Rental prices were also revealed to be on the rise in 2021, with the average rental cost of a studio apartment standing at £756.90 a month.

          How Did the Manchester Property Market Perform Between 2001 – 2021?

          Manchester property has increased in value massively over the years.

          As you can see from the graph, Manchester prices have increased considerably over the last five, 10, and 20 years.

          Between 2016 and 2021, prices have increased in the North West city by a mammoth 42.90%.

          The average UK property increased by only 23.47% in the same period.

          These growth levels for Manchester were also astronomical over a 10-year and 20-year period.

          To help demonstrate the level of growth seen in Manchester, let’s compare how the city has performed against other UK property destinations over 20 years.

          Between 2001 and 2021, Manchester property prices increased by a whopping 378.96%.

          This is the highest 20-year growth rate of any UK city, with the UK average house price having increased by 175.30% – less than half of Manchester’s property growth.

          It’s evident that Manchester has dominated house price growth over a 20-year and five-year period.

          The only period Manchester doesn’t lead is over 10 years, with London narrowly beating the Northern Powerhouse.

          Notably, though, London has seen incredibly mediocre growth rates over the past five years, with house prices rising past the realms of affordability.

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            Why Are Manchester Property Prices Rising?

            We know what you’re thinking. It’s all well and good knowing that Manchester’s property market is robust and that rental values and property prices are rising year after year.

            But, you may be asking:

            “Why are Manchester property prices rising?”

            Here are the main reasons behind the growing strength of the Manchester property market:

            Thanks to ongoing regeneration, Manchester has transformed itself into one of the UK’s most desirable places to live.

            Billions have been spent regenerating Manchester, and notable projects like MediaCityUK and Spinningfields continue to put this city on the map and attract new interest and business growth.

            This has led to population growth throughout the city, with many people leaving behind cities like London and heading to Manchester.

            Research from the Guardian in 2020 found that 13% of people leaving the capital chose to live in Manchester, which is 12% higher than the number recorded in 2009.

            When you think about the opportunities on offer and the lower average property price and general cost of living compared to London, it’s easy to understand why so many choose to live in Manchester rather than the capital.

            According to a report from Manchester City Council, Manchester’s population is predicted to reach higher than 635,000 by 2025.

            It gets better:

            Currently, around 37% of the population in Manchester is aged between 18 and 34.

            Since most renters are from younger demographics, such as students and young professionals, this is excellent news for the Manchester rental market.

            Manchester has long been known for its student scene, boasting the largest student population in Europe.

            The city is home to prestigious universities and even has one of the country’s best graduate retention rates at 51%, thanks to the city’s unrivalled business scene.

            Manchester’s business scene was voted amongst the top 10 global emerging ecosystems for business startups in 2020, alongside Liverpool.

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              Will the House Prices Continue to Rise in Manchester?

              Yes, Manchester property forecast predictions suggest that average house prices in Manchester will continue to rise over the coming years. Savills expects average property prices in the North West to grow by 11.7% by 2027, while JLL predicts Manchester will see growth of 5% by 2026.

              What Are the Best Places to Invest in Manchester’s Property Market?

              The best places to invest in Manchester are Manchester city centre and Salford. In particular, up-and-coming spots like Greengate Manchester generate a lot of housing market buzz thanks to ongoing regeneration and popularity with the city’s young populations.

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              Invest With RWinvest

              We hope you’ve found our guide to Manchester property market forecast predictions and past market performance useful.

              The UK property market forecast is incredibly exciting for the future and for those looking to make a major profit on their property purchases.

              Hopefully, questions like “Will house prices drop in Manchester?” will have been answered.

              However, if you’re still unsure of anything covered in this guide or you have some questions, don’t hesitate to get in touch with the team at RWinvest.

              We can offer advice on the Manchester property market and connect you with top Manchester investment opportunities, such as our latest Manchester development, Embankment Exchange, which offers projected 6% rental returns and prices from £209,950.

              If you’re interested in the latest house price trend and want to take advantage of the oncoming growth in the Manchester property market, be sure to look at our available new build Manchester investment opportunities.

              We choose only the best properties in top Manchester postcodes to ensure our clients get the most out of their investments.

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              Author

              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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