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What Does 2023/24 Have in Store for the Manchester Rental Market?

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    The Outlook on Manchester's Property Market

    With house prices in the area proving to be some of the best on offer in the UK in 2024, particularly in terms of growth, Manchester is a place with a strong reputation for reigning supreme in the UK property investment world.

    This is a reputation that the city seemingly intends to keep, with the Manchester rental market predicted to see even more growth in the years to come as the city continues to expand in population and industry.

    According to the latest from Savills, property prices in the North West region are expected to rise by around 20.2% over the next five years.

    It’s clear then that some (very) lucrative returns may be on the way for those who choose to invest in the rental market in Manchester.

    In this article, we’ll uncover what’s behind Manchester rental market growth and look ahead to see what else the future has in store.

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      Piles of coin on top of blocks that write 'R E N T'.

      Record High Rent Prices

      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 2024, the average property in Manchester now stands at around £1,755 a month to rent, according to the latest data from

      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 were looking for a home.

      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.

      Fierce Competition

      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.

      House models with up arrow

      Economic Growth

      Another major factor behind Manchester’s popularity in terms of property investment is the incredible economic growth and employment opportunities on offer in the city.


      • Manchester is Europe’s second-largest cluster of media businesses, the bulk of which is centred around MediaCityUK in Salford Quays – home to the likes of the BBC and ITV.
      • Greater Manchester is the largest city region economy outside of London, with a GVA of £62.8bn.
      • There are over 1.3 million people employed in Greater Manchester, with major industries in manufacturing, life sciences, energy, digital, and finance.
      • As the economy continues to grow, average property prices will rise along with tenant demand, making Manchester’s property market an unrivalled opportunity in 2022/23.

      Regeneration Efforts

      Regeneration efforts are often been highlighted as one of the best qualities a city can offer and are usually a sure-fire sign that property in this location is worth investing time and – most importantly- money in.

      The reasoning behind this is simple: UK regeneration projects typically cause a city to boom in rental demand and capital growth.

      The end result is that the city becomes a better place to live, and properties there can, as a consequence, promote some of the highest rental demand.

      With eco-property investment quickly becoming a top choice for many investors, this is definitely another aspect to keep your eye out for.

      At the moment, there are countless regeneration projects ongoing in Manchester.

      Two of the most prominent are Manchester Waters and NOMA.

      Manchester Waters is a decade-long project covering 26 acres and is expected to provide 2,500 new homes. With the site just a 10-minute walk from Old Trafford, this area will undoubtedly attract residents from all over the place – which is excellent news in terms of rental demand and market growth.

      Another relatively large project, NOMA, will boast four million square feet of retail, residential, office, hotel, and leisure space.

      Backed by the Co-operative Group and driven by a vision of sustainability and urban regeneration, the NOMA scheme has been created to attract more companies to the Manchester area and encourage more investment.

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        Manchester View

        Why Should You Invest in the Manchester Rental Market? - Risk vs Reward

        Of course, whilst this sounds all well and good, no investment comes entirely without risk, and property is no exception to this rule.

        If the last few years have taught us anything, it’s that anything can happen.

        The best thing you can do to offset this is to be as prepared as possible.

        Research any and every aspect of a potential investment area thoroughly before making the final decision – know the latest stats and figures, learn about local events which may affect the market and keep up to date with the latest predictions from property experts.

        Work with a property investment company like RWinvest. Property investment companies have expertise in the sector and can carefully match investors with the best property ventures to fit their needs.

        With the Manchester rental market continuing to flourish and there seemingly being no hint of stagnation, this year could be the perfect opportunity to broaden your ventures and invest in the best of UK property!

        Why Invest with RWinvest?

        If you’re considering Manchester property investment, then you can’t go wrong with RWinvest.

        Why invest in property with us?

        • We’re an award-winning property investment company with over 15 years of industry experience.
        • We feature some of the latest and greatest developments across the UK’s top locations – from prices as low as £34k.
        • We also have experience working with investors from around the globe, supplying them with all the information they need at every stage of the investment journey.

        And as of 2024, we now have over 1,000 five-star reviews.

        If you still have doubts – or would like to consider your options a bit more- we also feature in-depth looks into the latest up-and-coming investment areas.

        These guides explain why you should consider investing in these areas and cover everything from rental yields to the best places to invest.

        If you’ve heard enough, though, please take a look at some of our latest properties to see if any are the right fit for you.