North West Rental Prices Saw Second-Highest Regional Growth in the Year to January 2026
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Average Annual Rental Growth of 6% Recorded for North West
The latest data from the Office for National Statistics (ONS) has revealed that the North West region saw the second-highest rental growth rate in the UK between January 2025 and 2026. The region’s growth rate of 6% follows the North East’s reported 8% growth in private rents, with a 3.5% growth recorded for the UK as a whole.
For investors and landlords, this data showcases a stable rental market and once again highlights the North West as a top-performing UK region.
Let’s take a look at the factors that could have helped drive this growth in the North West’s rental market, and the outlook for the future.
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How Does The North West’s Rental Increase Compare to the Rest of the UK?
While the headline UK figure points to a 3.5% annual increase, regional results show a different picture.
Below are the UK regions that saw the highest to lowest rate of rental growth in the year to January 2026.
North East – 8%
North West – 6%
West Midlands – 5.4%
East Midlands – 5.3%
South West – 4.9%
East of England – 4.9%
Yorkshire & the Humber – 4.2%
South East – 3.6%
London – 1.1%
While it’s positive to see that no region saw negative growth, it’s clear that the two Northern regions of the country led the way for the UK’s rental market growth over the past year, while London and the South East’s rents saw the smallest change.
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Why Have North West Rents Risen so Sharply?
The North West has been recognised for its high-performing property market for many years now, and rental prices have played a big part in this.
One of the biggest explanations for why North West rents have risen sharply is a strong mismatch between demand and supply. Major cities like Manchester and Liverpool attract students, young professionals, and relocators who are moving away from the South.
In January, The Times ranked Liverpool as one of the best places to live for under-35s. Many young people are choosing to swap London for Liverpool due to it being not only a great place to live, but also more affordable than other UK areas – most notably London.
Writing about her move back to Liverpool from London, Katie Rosseinsky spoke about why young people are being drawn to the city:
“Liverpool is a city that punches well above its weight in just about every possible category, from culture to food to nights out. Pair that with rents that are still relatively affordable – and its appeal to millennials and Gen Z is glaringly obvious.”
Like Liverpool, Manchester remains a popular spot for young renters. Manchester has one of the youngest age profiles of any major UK city, with the largest share of its residents aged 20–29 according to ONS.
Will Rental Values Continue Growing?
With demand not expected to slow down any time soon, it’s possible that we could see the North West continue to lead the way as one of the UK’s most thriving rental markets. Key areas in the North West are experiencing billions of pounds worth of regeneration, such as Old Trafford in Manchester and Liverpool’s Pumpfields district, while smaller towns in the region such as Warrington and Wigan have gained attention as property hotspots.
Savills’ mainstream rental forecast suggests UK rents will rise by around 12% on average between 2026 and 2030. Given that recent ONS data shows the North West has been growing at almost twice the national rate, it’s reasonable to expect the region to once again outperform this benchmark and potentially exceed that 12% figure over the same period.
JLL forecasts indicate that Manchester’s rental values could rise by around 4% per year on average through to 2028. Liverpool’s 7% annual growth in the year to January 2026 further underlines the strength of the regional rental market and points to continued robust performance over the remainder of the year.
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