Residential rental prices in Manchester have risen significantly, positioning the city at the top amongst the UK’s Big Six cities.
New research from property advisor JLL highlights this trend, driven by the influx of new rental homes and a strong demand from tenants.
Rapid Growth in Manchester’s Rental Market
Residential rental price growth in Manchester has surged by 50% over the past three years, surpassing other major cities. Research from property advisor JLL attributes this increase to a new supply of rental homes, driving growth in both mainstream and prime markets.
Prime two-bed rental properties have witnessed the highest growth in the past year, with a 14.9% increase. Prime one-bed and three-bed properties followed with 9.7% and 12.9% rises, respectively. In contrast, the average sales growth in the market was a steady 1.8%.
Factors Influencing Rental Market Trends
JLL’s research highlighted that high mortgage rates and uncertainty over service charges have deterred potential buyers. As a result, many have turned to the rental market, increasing demand.
Reflecting national trends, annual sales growth in the Big Six cities saw a minor rise of 1.9% over the past year. This shift towards more affordable markets has been evident.
Continued Demand Driven by Young Professionals
Demand for rental properties across the six cities remains robust.
This demand is primarily driven by young professionals who seek the lifestyle benefits of city centre living.
Manchester stands out, with a more balanced national picture this year. Annual growth, which soared to double-digit highs in the first half of 2023, moderated to an average of 6.6% across these cities.
Manchester’s Unique Position
Jonathan Wiedemann, Head of North West & Building Consultancy North at JLL, remarked, “Manchester’s firmly cemented itself as a fantastic place to live, work, and study.”
He attributes this to the steady influx of capital, businesses, and people into the city.
While the sales market started the year slowly, Wiedemann remains optimistic about Manchester’s property future.
Future Growth Prospects
Wiedemann expressed confidence that anticipated interest rate reductions, an improving economic outlook, and a stable political landscape would spur future growth.
Manchester’s property professionals share this optimism, expecting these factors to drive continued investment and development in the city.
Manchester’s rental market is thriving, outpacing other major cities in the UK.
With favourable economic conditions on the horizon, the city’s property sector is poised for further growth.