Authored by the expert who managed and guided the team behind the UK Property Pack
Yes, the analysis of Manchester's property market is included in our pack
Manchester's property market continues to outperform the UK average with prices up 8% year-on-year as of June 2025.
The city offers strong rental yields averaging 6.35%, making it one of the most attractive investment destinations in the UK. With improved mortgage affordability and ongoing regeneration projects, buyer demand remains robust across all property types.
If you want to go deeper, you can check our pack of documents related to the real estate market in Manchester, based on reliable facts and data, not opinions or rumors.
Manchester property prices have risen 5-8% over the past year, with the average home now costing £247,000-£272,000. Mortgage rates have stabilized around 4.6%, buyer demand is strong with homes selling in just 19 days, and rental yields lead the UK at 6.35%.
| Property Metric | Current Value (June 2025) | Year-on-Year Change |
|---|---|---|
| Average Property Price | £247,000-£272,000 | +5-8% |
| Flats | £188,000-£211,000 | +6% |
| Terraced Houses | £215,000-£244,000 | +7% |
| Semi-Detached | £290,000-£320,000 | +7.5% |
| Detached Houses | £450,000-£457,000 | +5% |
| Days on Market | 19 days | -3 days |
| Average Rental Yield | 6.35% | +0.4% |
| Mortgage Rates (5-year fixed) | 4.61% | -0.8% |
How have Manchester property prices moved in the last year and a half?
Manchester property prices have shown remarkable resilience and growth over the past 18 months.
As of June 2025, the average property price in Manchester ranges from £247,000 to £272,000, representing a solid increase of 5-8% year-on-year depending on the data source and property type. The Manchester postcode area specifically saw prices climb by £11,600 (5%) over the last year, while ONS data indicates an even stronger 7.6% rise from £229,000 in March 2024 to £247,000 in March 2025.
This growth significantly outpaces the UK national average of around 3-4%, positioning Manchester as one of the strongest performing property markets in the country. Some reports even cite gains of nearly £20,000 in property values over the 12-month period, reflecting an 8% annual increase in certain areas and property types.
The consistent upward trajectory has been driven by strong fundamentals including population growth, major regeneration projects, and Manchester's status as the UK's second city attracting both domestic and international investment.
Despite broader economic headwinds in 2024, Manchester's property market maintained its momentum, proving its resilience and appeal to both homebuyers and investors.
What are you looking at price-wise for flats, terraced houses, semis, and detached homes?
Manchester offers diverse property options across different price points to suit various budgets and preferences.
It's something we develop in our UK property pack.
| Property Type | Average Price Range (June 2025) | Best Value Areas |
|---|---|---|
| Flats/Maisonettes | £188,000 - £211,000 | Salford, Ancoats, City Centre |
| Terraced Houses | £215,000 - £244,000 | Levenshulme, Burnage, Gorton |
| Semi-Detached | £290,000 - £320,000 | Sale, Stretford, Prestwich |
| Detached Houses | £450,000 - £457,000 | Didsbury, Chorlton, Hale |
| New Build Premium | +10-15% above average | Salford Quays, NOMA, Ancoats |
| Period Properties | Variable (£250k-£600k) | Didsbury Village, Chorlton |
| Buy-to-Let Properties | £150,000 - £250,000 | Fallowfield, Rusholme, Old Trafford |
Are property sales picking up, slowing down, or staying steady?
Manchester's property transaction volumes are experiencing a strong rebound in 2025 after a temporary dip in 2024.
While 2024 saw sales volumes drop by 11% year-on-year to around 13,000 transactions, the market has roared back to life in 2025. Agreed sales in Manchester jumped an impressive 16% in Q1 2025 compared to the same period in 2024, significantly outperforming most other UK cities. The number of homes coming to market has increased by 13% year-on-year, while actual sales are up 6%.
This resurgence reflects renewed buyer confidence following the stabilization of mortgage rates and improved affordability tests from lenders. Manchester homes are now among the fastest-selling in the UK, spending an average of just 19 days on the market in early 2025, down from 22 days a year earlier.
The combination of increased stock, strong demand, and quick sales indicates a healthy, active market that has moved past the uncertainty of 2024.
Estate agents report viewing appointments are up significantly, with many properties receiving multiple offers within days of listing.
Are buyers out in force, or are they still sitting on the fence?
Buyer demand in Manchester is strong and actively growing as we reach mid-2025.
The market is experiencing a surge in buyer activity, with estate agents reporting increased viewings, faster decision-making, and competitive bidding on well-priced properties. Manchester's 19-day average selling time makes it one of the fastest-moving markets in the UK, indicating buyers are acting decisively rather than hesitating.
This renewed confidence stems from several factors: mortgage rates have stabilized and begun to ease, inflation has moderated closer to the Bank of England's target, and lenders have relaxed affordability criteria allowing buyers to borrow up to 20% more than previously. The city's strong economic fundamentals, including major regeneration projects and a thriving job market, continue to attract both local buyers and those relocating from other parts of the UK.
First-time buyers are particularly active, taking advantage of improved mortgage accessibility, while investors are drawn by Manchester's market-leading rental yields of 6.35%.
The only segments showing some hesitation are luxury property buyers above £500,000, who remain more selective given the higher borrowing costs compared to pre-2022 levels.
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What's the deal with mortgage rates and how much can people actually borrow?
Mortgage rates have significantly improved in 2025, providing substantial relief to Manchester homebuyers.
As of June 2025, the average 2-year fixed mortgage rate sits at 4.64%, while 5-year fixed rates average 4.61%. The best rates for borrowers with low loan-to-value ratios have dipped just below 4%, a marked improvement from the peaks seen in 2023-2024. The Bank of England cut the base rate to 4.25% in May 2025, contributing to this more favorable lending environment.
More importantly, lenders have dramatically relaxed their affordability criteria, allowing buyers to borrow up to 20% more than under previous stress tests. This means a household earning £50,000 annually can now potentially borrow £250,000 instead of £208,000, significantly expanding their purchasing power in Manchester's market.
For a typical Manchester property at £250,000 with a 10% deposit, monthly payments on a 5-year fixed rate mortgage now average around £1,150-£1,250, compared to over £1,400 at the peak of rate increases.
This improved affordability has been a key driver of the market's resurgence in 2025, enabling more buyers to enter the market and existing homeowners to move up the property ladder.
Is inflation still messing with the property market?
Inflation's impact on Manchester's property market has shifted from negative to largely neutral or even positive as of mid-2025.
With inflation now hovering between 2.5% and 3.5%, much closer to the Bank of England's 2% target than the double-digit peaks of 2022-2023, the property market has stabilized considerably. This moderation has enabled the Bank of England to cut interest rates, directly benefiting mortgage borrowers and improving market sentiment.
Sellers are no longer rushing to market fearing further value erosion, while buyers feel more confident that prices won't spiral out of control. The reduced inflation has also meant that real wage growth has turned positive for many workers, improving affordability metrics across Manchester.
However, some inflation effects linger - construction costs remain elevated, keeping new build prices high, and many buyers remain price-sensitive after experiencing the cost-of-living squeeze. Cash buyers, who make up about 25% of Manchester transactions, have become more active as they see property as a hedge against any future inflation resurgence.
Overall, the inflation picture has shifted from being a major market headwind to a manageable factor that most buyers and sellers have adapted to.
How's the property inventory looking - plenty of choice or slim pickings?
Manchester's property inventory has expanded notably in 2025, though demand still outstrips supply in key areas.
The number of homes coming to market has increased by 13% year-on-year, with estate agents now holding an average of 35 properties per office - a significant improvement from the acute shortages seen in 2022-2023. This increased stock is giving buyers more choice and reducing the frenzied competition that characterized the post-pandemic market.
It's something we analyze in our UK property pack.
However, the picture varies significantly by area and price point. Central Manchester, regeneration zones like Ancoats and Salford Quays, and popular family suburbs such as Didsbury and Chorlton still face inventory constraints, with good properties selling within days. In contrast, outer suburbs and higher-priced properties above £400,000 show healthier stock levels.
New build supply remains particularly constrained due to planning delays and high construction costs, creating premium pricing for available units. The rental market faces even tighter inventory, with available rental properties typically securing tenants within 7-10 days.
While inventory has improved from recent lows, Manchester still operates as a seller's market in most segments, maintaining upward pressure on prices.
Which parts of the market are really moving - affordable homes, luxury pads, or new builds?
The mid-range property market between £200,000 and £400,000 is by far the most active segment in Manchester.
Semi-detached and terraced houses in this price bracket are flying off the market, particularly in established suburbs like Sale, Stretford, and Prestwich. These properties appeal to both families upgrading from flats and first-time buyers pooling resources, creating intense competition and quick sales.
The luxury market above £500,000 shows more selective activity. While premium properties in sought-after areas like Didsbury Village and Hale continue to attract buyers, they typically spend 30-45 days on market compared to the 19-day average. High-end city center apartments in developments like Deansgate Square maintain steady demand from investors and professionals.
New builds command premium prices (typically 10-15% above resale properties) but remain popular due to energy efficiency, warranties, and modern specifications. However, limited supply means buyers often join waiting lists for upcoming phases.
The buy-to-let segment under £250,000 remains highly active, driven by investors chasing Manchester's impressive 6.35% average rental yields.
First-time buyer properties, particularly one and two-bedroom flats under £200,000, continue to see strong demand aided by improved mortgage accessibility.
We did some research and made this infographic to help you quickly compare rental yields of the major cities in the UK versus those in neighboring countries. It provides a clear view of how this country positions itself as a real estate investment destination, which might interest you if you're planning to invest there.
How does city center compare to the suburbs and up-and-coming areas?
Manchester's property market shows distinct patterns across central, suburban, and emerging areas.
- Central Manchester (£250,000-£500,000): Remains the hottest market with properties selling in under 15 days. Areas like Ancoats, NOMA, and Castlefield attract young professionals and investors with modern apartments yielding 6-7% returns. Prices here have risen 8-10% annually.
- Established Suburbs (£300,000-£600,000): Family-friendly areas like Didsbury, Chorlton, and Sale maintain steady demand with good schools and transport links. These areas see consistent 5-7% annual growth and attract families moving from the city center.
- Up-and-Coming Areas (£150,000-£250,000): Levenshulme, Gorton, and Old Trafford are experiencing rapid transformation. These areas offer the best value with properties 30-40% cheaper than established suburbs but showing 10-12% annual growth as regeneration progresses.
- Outer Suburbs (£200,000-£400,000): Areas like Prestwich, Whitefield, and Urmston provide more space for money, attracting families and remote workers. Growth here is steadier at 4-6% annually.
- Regeneration Zones: Salford Quays and MediaCityUK continue to command premium prices with new developments, while areas around the proposed HS2 route show speculative interest.
Are sellers getting their asking prices or having to negotiate down?
Manchester sellers are achieving strong results, typically securing 97% of their asking prices.
The average discount from initial asking price to final sale price is around 3%, equating to approximately £8,000 on a typical £266,000 property. However, this varies significantly based on pricing strategy and property condition. Well-presented homes priced correctly from the outset often achieve asking price or even attract bidding wars, particularly in sought-after areas like Didsbury or for properties under £300,000.
Properties that sit on the market beyond 30 days typically see larger discounts of 5-7%, as buyers perceive them as overpriced or problematic. Sellers who price ambitiously hoping to "test the market" often end up accepting offers 5-10% below their initial asking price after several price reductions.
The fastest-moving properties - those selling within the 19-day average - typically achieve 98-100% of asking price. Cash buyers and investors sometimes secure slightly better deals (4-5% discounts) by offering quick, chain-free transactions.
Overall, Manchester remains a seller's market where realistic pricing leads to strong outcomes, while overpricing results in extended marketing periods and larger eventual discounts.
What kind of rental returns are landlords seeing, and are investors still interested?
Manchester continues to deliver the UK's highest rental yields, making it a magnet for property investors.
The city's average rental yield of 6.35% far exceeds the UK average of 4.75%, with some areas delivering even more impressive returns. Neighborhoods like Fallowfield and Openshaw can achieve yields of 7-12%, particularly for houses in multiple occupation (HMOs) targeting students and young professionals.
We cover this extensively in our UK property pack.
| Area | Average Purchase Price | Monthly Rent | Gross Yield |
|---|---|---|---|
| Fallowfield | £220,000 | £1,600 | 8.7% |
| Rusholme | £195,000 | £1,350 | 8.3% |
| City Centre | £285,000 | £1,550 | 6.5% |
| Salford Quays | £250,000 | £1,300 | 6.2% |
| Didsbury | £350,000 | £1,600 | 5.5% |
| Ancoats | £275,000 | £1,450 | 6.3% |
| Old Trafford | £180,000 | £1,100 | 7.3% |
Rents have surged 8-12% year-on-year, driven by chronic undersupply and strong demand from Manchester's growing population. Investor interest remains exceptionally high, with buy-to-let mortgages accounting for 35% of all property purchases in the city.
What's the forecast - are we heading for growth, a correction, or steady as she goes?
Manchester's property market is positioned for continued moderate growth over the next 3-6 months.
Most forecasts predict annual price growth of 4-6% through 2025, with Manchester expected to outperform the UK average of 2-3%. This growth will be underpinned by several factors: the city's population is projected to reach 650,000 by 2030, major regeneration projects including the £1.4 billion Victoria North development continue to progress, and Manchester's tech and creative sectors keep attracting high-earning professionals.
Transaction volumes should remain robust, supported by stabilized mortgage rates and improved lending criteria. The summer months typically see increased activity, and early indicators suggest 2025 will follow this pattern. However, growth is expected to be more sustainable than the rapid increases seen in 2021-2022.
Rental yields will likely remain strong at 6%+, continuing to attract investors despite potential new regulations on the horizon. The main risk factors include any unexpected interest rate rises or broader economic shocks, but these appear unlikely given current Bank of England guidance.
The consensus view is for steady, sustainable growth rather than dramatic swings in either direction.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are advised to consult with a qualified professional before making any investment decisions. We do not assume any liability for actions taken based on the information provided.
Manchester's property market in June 2025 presents a compelling opportunity for both homebuyers and investors, with strong fundamentals supporting continued growth.
The combination of rising prices, high rental yields, improved mortgage affordability, and quick sales demonstrates a healthy, active market that has successfully navigated recent economic challenges. Whether you're looking to buy your first home, upgrade to a family property, or invest for rental income, Manchester offers diverse opportunities across different price points and areas.
Sources
- PlumPlot - Manchester House Prices
- Rightmove - Manchester House Prices
- ONS - Manchester Housing Price Statistics
- Investropa - Manchester Real Estate Market Analysis
- Buy Association - Manchester Sales Update
- HomeOwners Alliance - Mortgage Rate Forecast
- Property Investments UK - Manchester Rental Yields
- Zoopla - UK House Price Index
- Manchester Property Guide - 2025 Market Overview
- Savills - Manchester Property Market Report