What Does 2022 Have in Store for the Manchester Rental Market?

Enter your details to find out about our best Manchester property investment opportunities!

Reece Pape Property Writer

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.

With house prices in the area proving to be some of the best on offer in the UK in 2021, particularly in terms of growth, Manchester is a place with a strong reputation for reigning supreme in the UK property investment world.

And 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 18.8% over the next five years.

It’s clear then that some (very) lucrative returns may be on the way for those that 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.

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 (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.

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 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.

Interested in an Exclusive Manchester Buy to Let Deal?

Find Out About Our Off-Market Manchester Property, With an In-Demand Manchester Location and Prices From Just £200,000.

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-renown 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 being the previously mentioned attractions of the city (i.e. thriving nightlife), affordability and a thriving business scene in areas like Salford and Spinningfields.

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.

Notably:

  • 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. 

Regeneration Efforts

Regeneration efforts have often been highlighted as one of the most attractive qualities a city can offer and can usually be a sure-fire sign that something 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. 

Don't Miss Our Latest Deals

Units in these opportunities are selling fast. Enquire now for more details.

Heaps Mill

Embankment Exchange

Merchant's Wharf

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

Research every aspect of a potential investment area thoroughly before making any final decision – know the latest stats and figures, and keep up to date with the latest predictions.  

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 2022, 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.

Receive Exclusive Manchester Investment Deals Straight to Your Inbox