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Manchester has truly cemented itself as one of the hottest property investment locations in the UK. While London was once the default choice, Manchester now stands out among UK cities for its dynamic economy, affordability, and excellent growth potential.
Investors are drawn to Manchester’s booming property market, which benefits from significant infrastructure investments, a growing student population, and major regeneration projects around areas like Salford Quays and the Northern Quarter.
The fact that Manchester’s property values have been going up really quickly over the last few years is even more exciting for investors. In fact, between 2020 and 2023, the average house price will rise by 25.8%.
Manchester’s economy is expected to keep growing, thanks in large part to its many job centres and the Northern Powerhouse plan. This means that there is a high chance that both rental prices and house prices will keep going up.
This city’s affordable housing prices relative to other UK cities and comparable cities mean property investors can expect stronger rental yields and steady growth in 2025, making it an ideal spot for buy-to-let investments and long-term capital growth.
The Current State of the Manchester Housing Market in 2024
It is November 2024, and Manchester’s housing market is still growing strongly, with prices going up all the time. A lot of people want to live in the city because it has a good job market, a lot of development projects, and better transport links.
The average house price in Manchester is approximately £248,000 as of August 2024, which remains significantly lower than London’s but still reflects solid growth. This difference in affordability, combined with Manchester’s lifestyle offerings and high rental yields, makes it a prime spot for both first-time investors and seasoned investors.
Demand for housing in Greater Manchester has outpaced supply, driven by a growing population, which has led to competitive prices across both the city centre and surrounding areas like Didsbury and Ancoats.
Source: Office for National Statistics
In fact, Manchester’s rental market has experienced an 8% increase in average rents over the past year, with rental yields averaging around 5-6% – a figure that remains highly attractive compared to other major UK cities.
Average House Price in Manchester, UK, 2024
According to ONS, the average house price in Manchester in August 2024 was about £248,000, suggesting that prices have been going up steadily over the past few years. And as property prices keep going up, Manchester has become a top choice for investors who want to make money through long-term capital growth and rental income.
Source: Office for National Statistics
The city’s property prices have benefited from ongoing regeneration and infrastructure investments, including the development of transport links like the HS2 rail project for which the UK has spent £27 billion.
Compared to the national average, Manchester’s property values offer a much more affordable entry point, especially when you consider the investment potential across various neighbourhoods.
Key neighbourhoods like Salford Quays and the Northern Quarter are magnets for real estate investors because of their high demand from young professionals and continuous reconstruction projects, which are mostly to blame for the areas’ above-average price increases.
Recent Trends in Manchester House Prices
Manchester’s real estate market has been extremely strong over the past few years. Manchester’s strong job market, an increase in big businesses, and regeneration projects are some of the main reasons for its growth.
As a result of these changes, there are fewer homes available in the city centre. This is because more young professionals and students are looking for homes in Greater Manchester.
The rental market here is thriving, too, with yields staying high as demand for buy-to-let properties rises. The student population has a significant role in driving rental demand, and Manchester’s status as a cultural and creative hub draws renters looking for dynamic urban living.
According to the Land Registry, this demand is still strong. Prices are going up because there aren’t many homes for sale, especially in the city areas.
How the Prices of Homes in Manchester Compare to Other UK Cities in 2024
When we look at how housing prices have grown in Manchester compared to other UK towns, it’s easy to see why people like living there. Here, the average price of a home is merely £248,000. In London, the average price is above £500,000.
Source: Hometrack UK
Compared to other regional centres like Leeds or Birmingham, the Manchester real estate market provides a unique combination of affordability with noticeable price increases. It’s a city that lets investors tap into significant capital appreciation without the upfront cost seen in other major cities.
Greater Manchester’s property prices have even outpaced other northern cities, thanks to its expanding economy, major corporations setting up base here, and the city’s transformation through large-scale regeneration projects.
Real estate investors like Manchester because it’s cheaper than other big cities. Young workers and students looking for a lively, cheap city life are also drawn to Manchester. This is good news for people who want to get into Manchester’s real estate market because it means there is a high desire for rental properties.
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Key Influences Shaping the Manchester Market Today
The real estate market in Manchester is growing in 2024. There are a lot of things in the city that make it a great place to invest in real estate. Regeneration projects are giving old, forgotten places a new lease on life.
Things in the economy, like interest rates and inflation, also have an effect on the market. There are also a lot of young workers who move to Manchester every year. Many of them choose it over towns with higher prices. Let’s take a closer look at what’s going on in Manchester’s market this year.
Regeneration Projects and Their Impact
In the last ten years, Manchester has gone through some amazing changes, and they are only getting faster. For example, the Victoria North project is a £4 billion investment that will build 15,000 new houses on 155 hectares north of the city over the next 20 years.
Then there’s the Mayfield project, a £1.5 billion redevelopment that’s turning a 24-acre area near the city centre into a vibrant mix of homes, offices, and leisure spaces. These projects aren’t just about creating buildings; they’re about creating communities.
Areas like Ancoats and Salford Quays, which once had little appeal, are now buzzing with activity, drawing in both renters and investors and pushing up property values.
Infrastructure Improvements and Transport Connectivity
It’s getting easier and easier to get around Manchester. The Metrolink tram network in the city has been growing to connect more areas. The HS2 rail project will make the trip from Manchester to London faster than ever.
These improvements make the city more attractive, especially for professionals who commute. Properties near these transport links are seeing a rise in demand and, naturally, a bump in property prices. For investors, that means there’s solid potential for capital appreciation, especially in areas close to these transport hubs.
Economic Influences: Interest Rates, Inflation, and Housing Demand
Interest rates and inflation have an effect on the Manchester real estate market, just like they do anywhere else. The cost of mortgages has increased due to rising interest rates. The demand for rental houses has surged as a result of many buyers remaining in the rental market.
Inflation has also driven up construction costs, adding to prices across the board. But even with these pressures, Manchester’s growing job market and resilient economy keep demand strong. Investors can see that Manchester’s rental market, in particular, is thriving, with both house prices and rental yields staying steady.
Growing Population and Skilled Workforce
Manchester’s population is growing quickly. Over the past ten years, it has grown by about 3% per year. A lot of these newcomers are young workers who are drawn to Manchester’s strong job market. More than 1.5 million workers live and work in the city. Many of them fit the local job market in high-demand industries including media, technology, and financial services.
Manchester’s colleges attract a sizable student body as well, many of whom wind up staying beyond graduation. Whether for purchase or rent, this consistent flow indicates a continuous desire for homes. This translates for investors into a consistent, expanding pool of tenants and consistent property value increase.
Top Areas for Property Investment in Manchester (2024)
Manchester has some fantastic neighbourhoods, each with its own character and investment appeal. Here’s a rundown of some of the best spots for property investment in 2024, with a look at what makes each area tick and some numbers on property prices and rental yields.
Manchester City Centre
Overview: The bustling heart of the city, is packed with business districts, high-end shops, and cultural hotspots.
Average Property Price: £300,000
Average Rental Yield: Around 5%
Everything happens in the city centre, which is why young professionals and college students who want to be in the middle of things love it there. Property prices are higher here—around £300,000 on average—but so is rental demand. Investors who can afford to get into this market enjoy consistent rental income and a high potential for capital appreciation, making it a solid choice for long-term investment.
Ancoats
Overview: A trendy neighbourhood that’s a mix of old and new, with industrial-era buildings alongside modern apartments.
Average Property Price: £275,000
Average Rental Yield: Around 5.5%
Ancoats has completely reinvented itself. What was once a run-down area is now a lively, artsy neighbourhood with coffee shops, eateries, and a strong sense of community. Renters love it here, especially young professionals who work in the city centre. With average prices around £275,000 and rental yields at about 5.5%, it’s a favourite for investors who want steady returns in a high-demand area.
Northern Quarter
Overview: Manchester’s indie and creative district, is famous for its art galleries, vintage shops, and music scene.
Average Property Price: £250,000
Average Rental Yield: Around 5.2%
Many young renters, creative types, and workers love the Northern Quarter because it has its own unique vibe. Price-wise, it’s a bit cheaper than the city heart, with homes running around £250,000. There is a steady demand for apartments in this area, which attracts investors. This makes it a great place to find long-term renters who are interested in culture.
Salford Quays and MediaCityUK
Overview: A waterfront hub that’s home to MediaCityUK, attracting digital and media professionals from across the country.
Average Property Price: £240,000
Average Rental Yield: Around 6%
The jobs in MediaCityUK and the digital sector make Salford Quays one of the best places in Greater Manchester to rent an apartment. The apartments on the water, the modern living spaces, and the ease of getting to fun things to do make this area very attractive. With prices around £240,000, Salford Quays is a top choice for investors looking for strong rental income and potential growth as the area keeps expanding.
Didsbury
Overview: A green, family-friendly suburb popular with professionals who want a quieter pace of life.
Average Property Price: £350,000
Average Rental Yield: Around 4.5%
Didsbury is one of those areas that just keeps its charm, with leafy streets, good schools, and a laid-back vibe. Property prices are higher here—around £350,000—but it’s a favourite for families and professionals looking for long-term rentals. For investors, Didsbury offers stable, steady returns and a tenant base that values the area’s community feel.
Hulme
Overview: Just south of the city centre, Hulme is affordable and on the rise, with lots of new development.
Average Property Price: £200,000
Average Rental Yield: Around 5.8%
Hulme has come a long way, with major regeneration projects making it a great option for first-time investors. The average price is around £200,000, and it’s popular with students and young professionals because it’s nearby to universities and the city centre. The rental returns are good here, which makes Hulme a good choice for people who want to get into the market for less money.
Fallowfield
Overview: A lively student area close to the University of Manchester, known for its high energy and strong rental demand.
Average Property Price: