Manchester’s rental prices rise at the highest rate in 16 years

July 27, 2022

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Article Summary

Manchester
  • Rightmove expected a 5% growth in asking rent prices for the year, however this prediction has risen further to 8% already.

  • The average monthly cost to rent in the city has reached £1,127 – comparing to just 12 months ago the rate being £913.

  • Due to historically low interest rates, rental payments on properties with two-bedrooms or less have risen by 40% over the last 10 years.

Rental prices in Manchester have soared by 23.4% in the last year, while the average advertised rent for the rest of the UK outside of London rose by 11.8%. At the beginning of this year, Rightmove expected a 5% growth in asking rent prices for the year, however this prediction has risen further to 8% already.

The highest average rate that Rightmove has recorded in the past 16 years. The average monthly cost to rent in the city has reached £1,127 – comparing to just 12 months ago the rate being £913. This is Rightmove’s record high in 16 years.

Due to historically low interest rates, rental payments on properties with two-bedrooms or less have risen by 40% over the last 10 years – compared to the equivalent on mortgage payments of the same properties only rising by 13%. This means that rental properties values are rising at a rate of more than triple, proving the demand in the rental market.

Even with the rising costs, demand for rental properties in the city is rising too – up by 6% since this time last year. The demand in outgrowing the number of properties readily available, creating additional tenant demand and competition.

Manchester filled Rightmove’s top spot for price increases over the last year, at 23.4%, while Chatham in Kent followed with 21.4% and Liverpool in third, at a 19.4% increase.

 

What is property investment?

Put simply, property investment is property purchased with the intention of generating financial returns for its buyer. These returns could be in the form of rental income through buy-to-let properties, house price growth through the future sale of the property or both property investments can be owned by individuals or organisations and can be short, long or medium term.

 

Get in touch

Take advantage of the high demand before property prices rise even further. Contact North Property Group now and invest in Manchester property today.

 

Sources: Manchester Evening News, The Guardian

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