Why Should I Invest in Manchester?
Manchester is one of the UK’s largest and fastest-growing cities, often referred to as the “Capital of the North.” The city’s blend of world-class education, rich cultural heritage, and diverse economic opportunities makes it a top choice for property investment. With a large and varied tenant population, ranging from students and working professionals to families, Manchester offers a more affordable alternative to other major UK cities like London, without sacrificing opportunity. The city’s strong economic growth, which has consistently outpaced London since 2014, further strengthens Manchester’s appeal as a property investment location.
In addition to its thriving local economy, Manchester’s tourism and cultural scene present significant potential in the short-term rental market. With over 11 million overnight stays annually, the city’s attractions, especially in areas like the city centre and MediaCityUK, make it an excellent location for short-term let investments.
Manchester’s property market is experiencing substantial capital growth. Property values are forecast to rise by 19.3% by 2028, driven by a combination of ongoing regeneration projects, a growing population, and rising housing demand. For investors, this means the opportunity to see strong returns on property investments as the city becomes an even more desirable place to live and work.
What is the Current Property Market Like in Manchester?
Manchester’s property investment market is thriving, offering competitive rental yields and strong growth potential. Investors can expect an average rental yield of 6.53%, with certain areas achieving yields as high as 12%. Rental growth is also forecast to reach 15.4% by 2026, reflecting the city’s expanding economy and rising demand for housing.
The average property price in Manchester is £245,000, well below the national average of £268,000 and significantly more affordable than cities like London, where the average price is £548,000. This affordability, combined with projected price growth, positions Manchester as an attractive market for property investors.
Ongoing regeneration efforts, such as the £4.3 billion Trafford regeneration, which will deliver 17,000 new homes and 90,000 new jobs, are driving demand and raising property values. Additionally, high-profile projects like MediaCityUK and NOMA are revitalising key areas of the city, further boosting the appeal of Manchester as a prime location for long-term investment.
What Makes Manchester Stand Out to Tenants?
Manchester stands out to tenants due to its thriving economy, diverse job opportunities, and exceptional connectivity. The city has become a hub for major industries like technology, finance, healthcare, and media, attracting both national and international businesses. Its strong job market, combined with excellent transport links, including Manchester Airport and a comprehensive local public transport system, makes it a highly desirable place to live for professionals.
In addition to its economic advantages, Manchester is also a major student destination, home to three prestigious universities and a student population exceeding 100,000. With a growing number of international students, the demand for student accommodation is consistently high, providing investors with opportunities to capitalise on purpose-built student accommodation (PBSA) or other rental properties near universities and transport links.
The city’s rich cultural scene, lively social scene, and trendy neighbourhoods contribute to Manchester’s appeal, attracting tenants who want an exciting living environment with easy access to both work and leisure.
Download our comprehensive guide to learn more about the opportunities in Manchester’s property investment market and discover how you can involve yourself in this exciting city’s future.
