Manchester has once again been named one of the top five UK cities for investors, leading the way in key areas of average total rent, the lowest number of rental vacancies, and a high percentage of the city’s population in the rental market.
According to data from buy-to-let lender Aldermore, Manchester also tops the top five list with the best long term property price rises of all at 6.5% annual growth, offering rising value over time paired with the benefit of near guaranteed rental income.
Voted the third best city in the world, Manchester offers a wide range of exceptional employment and educational opportunities, a thriving cultural scene, exciting growth projections and promising regeneration projects.
Below we explain why investors should explore Manchester property in 2025.
It’s a higher education hotspot
With some of the UK’s most revered educational institutions located in Manchester, it’s no surprise that demand for rental property is high. Over 100,000 students from all over the globe are enrolled across the city, producing around 36,000 graduates every year. Research also indicates that around 46% of these graduates choose to stay in Manchester once they have completed their studies, creating a consistent flow of young professionals into the city.
Employment opportunities
Large businesses like Microsoft, Siemens, Amazon, Kellogg’s, Unilever, BBC and ITV all have prominent bases in the city, making Manchester a thriving business hub for workers from all over the world. With thousands of new jobs also being created as a result of regeneration efforts, demand for properties in the northern city continues to increase.
High rental yields
The average UK rental yield is 4.71%, while some of Manchester’s more popular areas achieve yields as high as 7.6%. The city also offers a consistent market of tenants, with 32% of locals being private renters compared to the national average of 23%.
Manchester is continuing to experience immense rental growth according to the latest JLL research, which indicates that rents increased across the nation by 14%, with Manchester far exceeding this with 19.6% growth. Additionally, JLL predicts that the city will experience 19.3% further price growth and 21.6% rental growth by 2027, the highest forecasts across all UK cities.
Property capital growth
On top of having positive rental yields, Manchester properties are relatively cheap to purchase for buy-to-let investors. According to data from the Halifax Price Index the average property in Manchester costs £230,967, which is significantly cheaper than the average property in the UK and less than half of London’s average. That said, Zoopla has recorded year-on-year growth across the Manchester market of over 8% meaning the opportunity to buy property at lower prices could be over soon.
Regeneration in the city
As the UK’s second largest city region economy second only to London, Manchester has a GVA (Gross Value Added) of £74.85 billion, making it a major hub for investment.
A £500 million town centre rebuild, currently one of the country’s biggest regeneration projects, is set to introduce a new cultural hub, public square, shops, community spaces and the building of more than 1,700 homes. These initiatives make the city an appealing option for renters hoping to enjoy quality of life while escaping the property prices of London and beyond.
Good quality of life
Manchester is beloved for its thriving local culture, offering everything from exciting nightlife to historical significance and a prominent sports scene, with a new planned football stadium set to become the largest in the UK, overtaking Wembley Stadium’s capacity of 90,000.
From young students and professionals to growing families, the city offers something for everyone, and more and more people are looking to call the city home.
Buy-to-let property in Manchester offers investors an exciting opportunity to capitalise on low property prices and consistent rental yields. For those looking to learn more about the area’s thriving market and the options available to investors, Tailor My Property has an expert network of property, mortgage and finance professionals who are able to advise and assist with a wide range of queries.
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