As the biggest city in the North, Manchester has become one of the most popular locations for property investment in the UK. Thanks to considerable investment, Manchester has transformed into a dominant force, rising toward a city of London’s stature. Property investors have begun to focus on this city as it has grown, capitalising on the potential it has harnessed. In this article, we will explore why Manchester is a great location for buy-to-let property investment in 2025.
What is buy-to-let investment?
A buy-to-let is a property that has been bought by an investor to rent out to tenants. This allows the investor, who then becomes the landlord of the property, to earn rental income from their tenants.
Buy-to-let property remains one of the most reliable long-term investment strategies. It offers a relatively low-risk route to generating consistent rental income, particularly when supported by a professional property management company. This can provide a passive and scalable source of income.
One of the main advantages of buy-to-let is its flexibility. Investors can choose between long-term and short-term letting models, each offering unique benefits and access to different tenant demographics. This allows investors to adapt to market trends and optimise rental yields.
In addition to steady income, buy-to-let investors also benefit from capital growth. As property values appreciate over time, investors can either increase rental prices or sell at a profit, maximising their return on investment.
Why buy-to-let in Manchester?
In recent years, Manchester has surged ahead as one of the UK’s top-performing cities and is poised to become a global hub that could rival London. Demand for property has soared, driven by the city’s expanding job market, strong quality of life, and promising future. Let’s explore the many reasons why Manchester buy-to-lets are perfect for property investors.
Capital growth and regeneration
Manchester’s property market has shown impressive resilience and growth. As of February 2025, the average property price in the city is £246,000, a 6.9% increase year-on-year. JLL forecasts a 19.3% rise in Manchester property prices by 2028, outpacing the UK national average of 17.6%. For buy-to-let investors, this represents a promising window of opportunity to enter the market before prices climb further.
Manchester’s impressive growth is fuelled by the regeneration efforts being undertaken throughout the city. Through strategic investment, Manchester has improved many, previously destitute, areas including MediaCityUK and the broader Salford Quays area. This created new opportunities for businesses, professionals, and residential property to be developed, driving higher prices. The latest regeneration effort is focused on the redevelopment of the Trafford area, spearheaded by the development of a new 100,000 seater stadium for Manchester United FC. This is expected to create over 17,000 homes and 90,000 jobs, making the area particularly lucrative for buy-to-let investors in Manchester.
Demand
Manchester’s population has surged to 568,996 and is projected to reach 635,000 by the end of 2025. This growth, fuelled by strong inward migration and job creation, is set to continue, with employment opportunities now estimated to exceed 155,000 thanks to the redevelopments in Trafford.
With housing demand far outstripping supply, this imbalance is driving rental prices higher. This competitive Manchester buy-to-let market offers an opportunity for investors to achieve strong returns through both rising rents and long-term appreciation.
Thriving rental market
Manchester’s buy-to-let rental yields are among the most attractive in the UK. Average gross yields sit at 6.53%, with some areas achieving up to 8–10%. Short-term lets can exceed even that, with returns as high as 15%, largely due to lower entry prices and high rental demand. This promises Manchester’s buy-to-let investors a high return on their investment.
Average monthly rent in Manchester is £1,310, a 9.5% increase from £1,196 in March 2024. With the highest rents in the North West and forecasts predicting annual rent increases of 4% until 2028, investors can expect growing, stable income over the coming years.
Booming economy
Manchester’s economic outlook is another reason for its rising property values. Predicted to be the UK’s second-fastest growing economy by 2027, with a 2.2% growth rate, the city is attracting global attention as a business and innovation hub.
Major employers like Amazon, Google, and the BBC have set up operations in Manchester, accelerating job creation and economic activity. Combined with targeted government investment, the city is becoming a hub for professionals, fuelling demand for high-quality rental properties.
Connectivity
Manchester’s exceptional connectivity makes it an ideal location for tenants. With a comprehensive transport network including trams, trains, buses (including night services), and an international airport, navigating the city has been made easy and accessible. Accessibility and strong transport links from their rental properties have been increasingly prioritised by tenants in recent years. In Manchester, tenants can easily access all major areas of the city, from urban centres like the city centre all the way to suburbs like Didsbury and Burnage. For example, tourists who arrive via Manchester Airport can then take a direct 15-minute train into Manchester Piccadilly station to reach the city centre. Manchester’s transport system is unparalleled in the north of England, second only to London in the UK.
Investment opportunity: Trafford Waters
Trafford Waters is the new development located within the heart of Trafford’s regeneration, offering premium 1, 2, and 3-bedroom apartments. Close to the planned new Manchester United stadium, the site promises sustained rental demand and long-term growth for property investors.
Key highlights:
- 6% projected rental yield
- Optional parking (£25,000 per space)
- 250-year leasehold
- Completion: Q2 2027
- Prices from £198,826
This is an excellent opportunity to invest in one of Manchester’s most anticipated developments, at the centre of one of the city’s most exciting regeneration areas.
Why you should invest in Manchester buy-to-let properties
Manchester’s property market presents a golden opportunity for buy-to-let investors. Due to its high demand, rapid population growth, thriving rental market, strong economy, and extensive regeneration, Manchester stands out as one of the UK’s most promising markets for buy-to-let investment. With the city primed for substantial capital growth over the next few years, this is the best time to enter the Manchester buy-to-let market. By investing early, investors can benefit from today’s comparatively lower prices and watch their property grow in value, whether the goal is to secure steady rental income or maximise returns from a future sale of the property.
Interested in purchasing a Manchester buy-to-let? Contact us today and we will connect you with one of our property investment and help start your property journey.
