Manchester Property Growth – How is the Manchester Housing Market Performing?

To start with, let’s look at some information on the Manchester property market.

In the last few decades, the Manchester housing market has experienced some fantastic growth and now sits as one of the premier property destinations in the UK.

In the following section, we will take a look at the current market statistics in the Northern Powerhouse, such as the average house price in Manchester, how much it costs to live in the city, and how Manchester property prices compare to the rest of the UK.

To see more information on how the city is performing as of 2023, be sure to check out our latest Manchester property market report.

Manchester house prices by area can heavily fluctuate.

Greater Manchester is a diverse area, with varying price levels on offer.

How Do Manchester Property Prices Compare to the Rest of the UK?

Manchester property prices are highly affordable when compared to other major cities in the UK.

House prices in Manchester are cheaper than those in London where the average is £739,288, Leeds which has an average of £256,028, and Bristol with an average of £394,145.

Liverpool is one of the only other major UK cities where property prices are lower than Manchester, at £177,803 on average according to the UK House Price Index 2023.

This is around £53,823 cheaper than the average property price in Manchester.

Rental yields are one of the most important aspects of property investment, and shows the percentage return on investment earned through rent. It’s calculated by dividing the yearly rental income by the purchase price and multiplying by 100 for a percentage.

Generally, rental yields between 5 and 6% are good, highlighting the regions strong performance.

In fact, the UK as a whole is only generating average rental yields of just 5.11% in 2023.

Notably, these rental yields are just the average.

Based on Zoopla data, you can find returns up to 10% in Salford’s M5 postcode.

Of course, rental figures also change depending on what property type you invest in.

In the property world, prices for both homes and rent tend to increase with rising demand, and there isn’t a city in the UK with such high demand as Manchester.

A study from Zoopla in 2020 found that the ratio between supply and demand of properties in Manchester was a staggering 1:5.

A major reason for this colossal demand is the ever-expanding population in the city.

Between 2006 and 2016, the population of Greater Manchester grew by an astonishing 7.7%, which was double the growth rate of the rest of the UK.

This growth rate was seen in Manchester, too, with a 27.8% increase in population size since 1991.

A bulk of this expanding population is from young people.

Manchester is one of the definitive student cities. Featuring the largest student population in Europe, the Northern powerhouse features over 100,000 students across five top universities.

Notably, while students are choosing to live in Manchester for their education, they also choose to stay after their studies, with the city having the second-highest graduate retention rate in the UK.

Over 51% of students choose to stay and work in Manchester after graduation thanks to the fantastic living experience and business opportunities on offer.

Additional resources of interest

West Quay Royal Arsenal

2023 UK Market Roundup

Spotting UK Buy to Let Hot Spots

Properties see price reduction

November 2023 House Prices Falling