Key Highlights

Manchester has firmly established itself as the best buy-to-let city in the UK, thanks to a combination of strong economic growth, rising property prices, high rental demand, and significant urban regeneration projects. Several factors have contributed to this rise, making Manchester the premier choice for property investors looking to maximise returns in the UK market.

Thriving Rental Market and High Yields

One of the standout features of Manchester’s buy-to-let market is its thriving rental sector. Approximately 31% of Manchester’s population rents privately, which creates a high demand for rental properties across the city​. This large rental population provides investors with a steady and constant source of tenants, ensuring low void periods and consistent rental income. The average rent per room in Manchester stands at around £454, which is higher than neighbouring cities like Warrington and Wigan​ and the average rental cost for a one-bedroom apartment is around £1200.

The city’s rental yields are also impressive. Manchester consistently ranks among the highest in the UK for rental returns. The average rental yield in the city is notably high compared to other parts of the UK, making it an attractive proposition for landlords. Forecasts predict that rental prices in Manchester will grow by 16.5% over the next five years​, almost rivalling that of London.

Capital Appreciation

Over the past decade, Manchester has seen consistent property price growth, with average property prices increasing by 5.6% since 2010​. In May 2000, the average house in Manchester was priced at £41,625, but the latest data from Rightmove shows that the average property now fetches a rough £263,132 – almost six times of the 2000 average. 

Despite this rise, Manchester remains more affordable than London, yet offers similarly strong investment potential. Manchester is forecasted to see the highest house price growth in the UK over the next five years, with predictions of a 17.1% increase​, meaning that investors can see great rental returns and significant long-term capital appreciation. 

Urban Regeneration and Economic Growth

Manchester’s ongoing urban regeneration projects have played a significant role in enhancing its appeal as a buy-to-let destination. Major developments in areas like Victoria North, NOMA, Spinningfields and Ancoats have revitalised once-forgotten parts of the city into vibrant neighbourhoods, attracting working professionals, young families, and students​. These regeneration efforts have increased property values while boosting the rental market, with new residential developments catering to a growing number of renters attracted to Manchester for its work and educational opportunities, as well as culture and city living. 

Victoria North in particular is an exciting area that is currently underway for serious expansion and redevelopment. North Property Group, the FEC, and the Manchester City Centre Council are collaborating on this joint venture aimed at creating a green belt within the city centre. Spanning 155 hectares, the project will link Victoria Station to the Queens Park area. The development will feature a mix of residential, retail, and commercial spaces, offering numerous investment opportunities. It will also include public spaces, green areas, educational facilities, hospitality venues, and shopping centres.

Additionally, the city’s expanding economy, driven by sectors such as digital technology, media, and finance, has made it a hub for young professionals. This population growth further drives demand for rental properties, especially in central areas close to business hubs. Manchester’s cultural appeal, with its rich history, renowned universities, and booming arts scene, also adds to the city’s desirability as a place to live and invest​.

Future Potential

Compared to cities like London, Manchester remains relatively affordable for property investors, while still offering competitive returns. While London has higher average rents, its rental yields are often lower due to its high property prices. In contrast, Manchester provides a better balance between property affordability and rental yield, making it a more attractive option for both new investors and those looking to expand their portfolio in the north.

Looking to the future, Manchester’s prospects remain overwhelmingly positive. The city is forecasted to see continued growth in both property prices and rental demand, making it a top choice for investors seeking both short-term rental income and long-term capital growth​. Currently, it is expected that the city will see a continued growth of 2.1% between 2024 and 2027, surpassing the UK’s national projected growth rate of 2%.

Summary

North Property Group is a property investment agency and lettings agency focusing on premium UK real estate. We secure deals with high-scale developers to deliver the best off-plan developments to investors. If you choose to invest in property in Manchester city centre and beyond, we can help you find the perfect property and manage the entire lifecycle. We can offer financial advice and guide you through a range of investment options.

We’ve been closely tied to Manchester’s growing skyline and regeneration efforts, working with esteemed developers to enhance and grow the city. Working alongside premium developers, we are committed to delivering premium residences across the Greater Manchester Area. Book a free consultation with us today to start your journey of investing in off-plan UK property.