In January 2022, rent in Manchester hit a new record high – rising consistently since April 2021 – with studio apartments seeing an increase of around 10% (£76pcm) in only one quarter, taking the average studio rents to above £800pcm for the first time.
Data recorded in April 2022 showed that the average cost of a two-bedroom property in Manchester city centre stood at £1,082, revealing a 9.8% annual increase.
With such a substantial rise in rent, there is no indication of the rental market in Manchester slowing any time soon.
In fact, in January 2022 (a typically quieter month for the market), an estimated 517 properties were let in the city – significantly higher than the pre-COVID average of 328.
When you factor in that alongside this, every month in 2021 saw lettings numbers remain above the pre-COVID average, it’s clear that in terms of a resilient rental market, Manchester is on top form.
As of 2023, the average property in Manchester now stands at around £875 a month to rent, according to the latest data from the Valuation Office Agency.
Supply and Demand
One of the biggest reasons behind the growth seen in the Manchester rental market is the undersupply of properties in the city.
In the wake of the pandemic, tenant demand across the UK has skyrocketed – with Rightmove finding in January 2022 that the number of prospective buyers was 15% higher than the same time last year.
In Manchester, things are not much different.
In fact, demand is even higher.
In 2020, a study by Zoopla found that the ratio between supply and demand in Manchester is estimated to be 1:5: meaning that for every property in the city, five people want a home.
Fast forward to now, and not much has changed.
The Manchester rental market has continued to boom, with demand increasing by 36% in the final month of Q3 2021 – as a result of people beginning to return to the city centre in large numbers.
The key takeaway is that now more than ever, more people are looking for a home in Manchester.
Good news for all of you looking to get started with property investment!
Not only can you expect to see the aforementioned consistent rental demand, but long-term capital growth is also on the cards.
Rising Student Population
Among this steadily increasing population in Mancher, there are around 100,000 students in Greater Manchester, and a large bulk focused on the city of Manchester, making the region a fantastic choice not only for residential property; but also for student property investment in Manchester.
Fulfilling the needs of any would-be student city– from world-class restaurants to a world-renowned nightlife scene – some would even say that the entire city is run by students, just going off the sheer number of them living there.
It’s not all partying, though.
Alongside this, Manchester Metropolitan University, the University of Salford, and the University of Manchester are some of the best in the world, with the latter voted in the top 30 in the world in 2021.
Student accommodation can be an exciting option for investors looking to break into the rental market in Manchester – with higher rental yields and lower average house prices than residential property.
The city has often proven to be a solid competitor in the property investment world – with a particularly healthy rivalry with the capital city. Sometimes even being able to overshadow it entirely.
A notable example of this can be seen in the population of young professionals in the city.
Around 51% of students in Manchester choose to stay after graduation – the second-highest amount in the country.
This has, of course, led to a considerable population of young professionals living and working in the city, which has continued to boost the Manchester rental market even further.
This is due to various reasons, most notably the previously mentioned attractions of the city (i.e. thriving nightlife), affordability and a thriving business scene in areas like Salford and Spinningfields.