By Named the UK’s best location for buy to let investment for landlords by Aldermore, Manchester’s property market has an established track record as an investment hotspot.
In this article, we take a look at why buy to let in Manchester is so attractive, what’s driving tenant demand and answer the question of whether the market has peaked, or if there are still opportunities for landlords to take full advantage of the city’s growing demand for rental properties.
If you’re interested in finding out more about Manchester’s property market from local experts, register for your free ticket to the Landlord Investment Show in Manchester on 14th October 2025.
Manchester: A Rental Hotspot
Whilst buy to let in Manchester has a compelling investment case, it is only half the story. For landlords, the real opportunity lies in understanding why Manchester is a magnet for renters and whether that demand is sustainable over the long term.
Research by Property Investments UK has revealed that Manchester is the most renter-heavy city in the UK outside London, with 62% of households residing in privately rented accommodation. When compared to London, where 53% of total households reside in private sector accommodation, the scale of Manchester’s rental market is clear.
However, the number of renters is just one piece of the picture. With a tenant satisfaction rate of 73%, Manchester is a particularly attractive city for those seeking rental properties. For landlords, happy renters can often lead to longer-term tenants, helping to reduce void periods, creating a stable buy to let asset within their property portfolio.
When it comes to rents, according to ONS data, the average monthly private rent in Manchester was £1,312 as of June 2025, marking a 6.7% increase from £1,230 in June 2024. Rental prices for flats and maisonettes witnessed the most significant rise of 7.1%, while detached properties saw a smaller yet steady increase of 5.7%.
In terms of property types, one-bedroom properties proved particularly popular, with average rents rising by 7.4%. Larger properties, such as those with four or more bedrooms, also saw increased demand, with rents growing by 5.3% over the same period. These figures highlight the upward trend in rental prices, reflecting the ongoing tenant demand in Manchester.
For those looking to the future of Manchester’s rental market, JLL forecasts that rents have the potential to increase by 18.8% over the next five years.
What’s Driving the Demand for Buy to Let in Manchester?
Buy to let in Manchester offers several compelling advantages, making it an excellent option for landlords looking to invest.
Manchester’s strong tenant demand means that properties often achieve yields that outperform those in other major urban hubs, making rental returns in the city among the highest in the UK.
This consistent demand is fuelled by a large volume of 20-34-year-olds looking to rent homes in the city, thriving employment opportunities, and a growing influx of students and young professionals.
Another major factor is Manchester’s economic growth. Manchester’s economy is one of the UK’s biggest success stories, with the city-region recording the fastest-growing economy in the UK and having witnessed more foreign direct investment than any other UK region. Plus, with Greater Manchester unveiling an ambitious ten-year plan to bolster growth and create tens of thousands of new jobs, demand for rental property is set to continue to rise.
As the northern hub for finance, technology, and creative industries, which attracts both businesses and skilled workers, Manchester’s economy not only supports rental demand but also ensures a steady flow of high-quality tenants.
Affordability is another reason Manchester is so appealing to renters. Compared to cities like London, the cost of living in Manchester is considerably lower. This affordability makes the city a practical choice for many, particularly young professionals and families, ensuring that the demand for rental properties remains strong.
For landlords, these factors combine to create an environment where property investments are likely to yield long-term financial rewards. Whether you’re a seasoned investor or new to the buy to let market, Manchester offers an attractive combination of strong tenant demand and high potential returns.
Manchester House Prices
When it comes to investing in property, the price tag is often one of the biggest considerations for landlords.
For those considering buy to let in Manchester, the average house price in the city stood at £257,000 in May 2025, reflecting a 3.2% increase compared to May 2024. This is consistent with the broader trend observed across the North West region during the same period, according to data from the Office for National Statistics (ONS).
For flats, prices rose by 4.5%, making them an appealing option for landlords seeking lower entry costs and strong rental demand. Meanwhile, terraced properties saw a more modest increase of 1.2%, offering steady growth for those targeting families or larger households.
By comparison, the average house price across the UK in May 2025 was £269,000, up from £259,000 the previous year. These figures indicate that Manchester remains relatively affordable for investors while still offering competitive growth in property values.
In terms of long-term capital appreciation, Savills paints a positive picture for the North West region, with a 31.2% 5-year forecast. The North West region is set to outpace all other locations and significantly outperform the UK average of 24.5%.
Considering buy to let in Manchester?
Manchester’s thriving rental market, driven by high tenant demand, strong yields, and economic growth, presents a significant opportunity for landlords. The city offers diverse investment options, from city-centre apartments to family homes in suburban neighbourhoods, each catering to a wide pool of tenants.
As house prices and rental yields continue to trend upwards and a positive five-year outlook, now is a great time to explore buy to let investments in Manchester.
To make the most of this dynamic market, register for your free ticket to the Landlord Investment Show in Manchester on 14th October 2025, held at the Manchester United Old Trafford stadium.
You’ll get the chance to connect with local property experts, research specific areas, and identify the property types that best align with your investment strategy.
As with any investment, research plays an important part in the decision-making process. By registering for your free ticket for the Landlord Investment Show in Manchester, landlords can learn firsthand from local experts and can position themselves to benefit from the long-term potential of buy to let in Manchester.
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