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 property prices are definitively going up, with current data showing a 7.6% annual increase as of June 2025.
The Manchester residential property market continues to outperform the UK average, with average prices now reaching £247,000 to £249,000. This represents a substantial increase from £229,000 just a year ago, making Manchester one of the strongest performing property markets outside London.
If you want to go deeper, you can check our pack of documents related to the real estate market in the UK, based on reliable facts and data, not opinions or rumors.
Manchester property prices have risen by 7.6% year-on-year, reaching £247,000 in June 2025, with forecasts predicting continued growth of 4-5% annually through 2028.
The city centre and regeneration areas are experiencing the fastest price growth, while rental yields of 6.35% make Manchester one of the UK's most attractive investment markets.
| Key Metric | Current Value | Year-on-Year Change |
|---|---|---|
| Average Property Price | £247,000-£249,000 | +7.6% |
| City Centre Average | £275,000-£300,000 | +8-10% |
| Average Rent | £1,307-£1,309/month | +8.5% |
| Rental Yield | 6.35% | Above UK average |
| Time to Sell | 19 days | Fastest in UK |
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.
How much have Manchester property prices increased in the past year?
Manchester property prices have increased by 7.6% over the past year, rising from £229,000 in March 2024 to £247,000 in March 2025.
This impressive growth rate significantly outpaces many other UK cities and represents one of the strongest performances in the regional property market. The Office for National Statistics data shows that this 7.6% increase is lower than the North West regional average of 9.4% but still demonstrates Manchester's resilience and attractiveness to buyers.
The growth has been consistent throughout different property types. Terraced houses led the charge with an 8.3% annual increase, while detached properties saw a more modest but still healthy 5.9% rise. New build properties commanded a premium, averaging £317,000 compared to £262,000 for established homes.
Looking at the broader picture, Manchester property prices have risen by an extraordinary 33-37% over the past five years, far exceeding the national average of around 15%. This sustained growth trajectory has established Manchester as one of the UK's top-performing property markets.
The monthly data shows that this growth trend continued into mid-2025, with prices maintaining their upward momentum as we reach June 2025.
Which areas of Manchester are seeing the fastest price growth?
Central Manchester, particularly the city centre and inner-ring suburbs, is experiencing the fastest property price growth in 2025.
Ancoats leads the pack as Manchester's hottest neighbourhood, with two-bedroom apartments now selling for around £250,000, up from £220,000 just two years ago. This former industrial area has transformed into a vibrant residential hub attracting young professionals and investors alike.
Salford Quays continues its impressive trajectory with strong price appreciation driven by MediaCityUK and extensive waterfront developments. The Northern Quarter maintains its appeal with its unique blend of culture and convenience, pushing prices higher.
Other high-growth areas include Victoria North, where the £1.5 billion regeneration project is transforming the landscape, and Didsbury in South Manchester, where family homes are seeing sustained demand. Properties near major transport links and regeneration zones are particularly sought after.
It's something we develop in our UK property pack.
| Area | Average Price 2025 | Growth Rate | Key Driver |
|---|---|---|---|
| Ancoats | £250,000+ | High | Urban regeneration |
| Salford Quays | £275,000+ | High | MediaCityUK expansion |
| Northern Quarter | £260,000+ | Moderate-High | Cultural appeal |
| Victoria North | £240,000+ | High | £1.5bn regeneration |
| Didsbury | £350,000+ | Moderate | Family demand |
What property types are experiencing the biggest price increases?
Flats and apartments in Manchester are experiencing the highest price increases, with annual growth rates reaching 4.5% as of June 2025.
This surge in apartment prices is driven by strong demand from young professionals and students, particularly in central locations. The average price for flats and maisonettes now stands at £198,000 to £211,560, making them the most dynamic segment of Manchester's property market.
Terraced houses are the surprise performer, showing an impressive 8.3% annual price increase according to ONS data. These properties, averaging £244,000 to £255,099, appeal to first-time buyers and young families seeking more space while remaining close to city amenities.
New build properties command a substantial premium, averaging £317,000 compared to £262,000 for older homes. This 21% price differential reflects buyer preference for modern amenities, energy efficiency, and lower maintenance costs.
Semi-detached and detached houses, while experiencing more modest growth of 5-6%, remain popular among families, with average prices of £313,000 and £457,000 respectively.
How have Bank of England interest rate changes affected Manchester property prices?
The Bank of England's interest rate cuts to 4.25% as of June 2025 have significantly boosted Manchester's property market by improving mortgage affordability.
Following several rate reductions since late 2024, mortgage rates have stabilized around 4.6%, making home purchases more accessible to buyers. This improved affordability has directly contributed to increased buyer activity in Manchester, with homes now selling in just 19 days on average - the fastest in the UK.
The lower borrowing costs have particularly benefited first-time buyers in Manchester, where the average first-time buyer property price of £232,000 represents better value than many other major UK cities. This has led to increased competition for properties and supported the 7.6% annual price growth.
Properties bought with mortgages in Manchester averaged £252,000 in March 2025, showing that leverage buyers remain active in the market. The combination of lower rates and Manchester's relatively affordable prices compared to London has created a sweet spot for buyer demand.
Market analysts expect these favorable borrowing conditions to continue supporting price growth throughout 2025.
Get fresh and reliable information about the market in Manchester
Don't base significant investment decisions on outdated data. Get updated and accurate information with our guide.
What are the price forecasts for Manchester property in 2026 and beyond?
Manchester property prices are forecast to grow by 4-5% annually through 2026, with cumulative growth of 19.3% expected by 2028.
JLL's comprehensive forecast positions Manchester as the second-strongest UK city for house price growth until 2028, beaten only by Birmingham. Their projections show annual increases of 3.5% in 2025, 4% in 2026, 5% in 2027, and 3.5% in 2028, resulting in a total growth of 19.3% over the period.
Savills presents an even more optimistic outlook for the North West region, forecasting remarkable growth of 28.8% by 2028. Their year-by-year breakdown shows 4.5% growth in 2025, accelerating to 5.5% in 2026, peaking at 6.5% in 2027, and maintaining 5.5% in 2028.
The rental market shows equally strong prospects, with JLL predicting annual rental growth of 4.5% in 2025, 4% in 2026, 3.5% in 2027, and 3% in 2028. This 21.7% cumulative rental growth will further enhance Manchester's appeal to buy-to-let investors.
These forecasts are underpinned by Manchester's economic fundamentals, including population growth, major infrastructure projects, and its position as the Northern Powerhouse.
Which property price ranges are most active in Manchester's market?
The £150,000-£250,000 price range dominates Manchester's property market, accounting for nearly 40% of all transactions in 2025.
Properties priced between £150,000-£200,000 represent 19.5% of all sales with 2,544 transactions, closely followed by the £200,000-£250,000 bracket at 19.1% with 2,490 sales. This concentration shows where the bulk of buyer demand sits in Manchester's market.
The average property price of £247,000 places Manchester as the 36th most affordable postcode area out of 105 in England and Wales, making it attractive for both local buyers and investors from more expensive regions.
- £150k-£200k: 2,544 sales (19.5%)
- £200k-£250k: 2,490 sales (19.1%)
- £250k-£300k: 1,876 sales (14.4%)
- £100k-£150k: 1,654 sales (12.7%)
- £300k-£400k: 1,432 sales (11.0%)
First-time buyers are particularly active in the lower price ranges, with an average purchase price of £232,000, while investors seeking rental properties often target the £150,000-£250,000 sweet spot for optimal yields.
How does Manchester compare to other major UK cities?
Manchester's property market outperforms most major UK cities with its 7.6% annual growth rate and average prices of £247,000 remaining significantly more affordable than southern counterparts.
Compared to London's average of £523,376, Manchester offers exceptional value while still delivering strong capital growth. Birmingham, Manchester's closest competitor, shows similar average prices at £249,000-£250,000 with comparable growth projections, making these two cities the UK's regional powerhouses.
Leeds mirrors Manchester with average prices around £245,000 and 7.2% annual growth, while Liverpool remains more affordable at £174,000 but shows impressive 8.5% growth. Manchester's combination of reasonable prices and consistent growth makes it particularly attractive.
It's something we develop in our UK property pack.
Manchester's rental yields of 6.35% significantly exceed the UK average of 5.60%, outperforming Birmingham and Leeds in this crucial investor metric. The city's 19-day average selling time also leads the nation, indicating exceptionally strong demand.
With major cities like Edinburgh and Bristol pricing out many buyers, Manchester represents the sweet spot of affordability, growth potential, and economic fundamentals.
We made this infographic to show you how property prices in the UK compare to other big cities across the region. It breaks down the average price per square meter in city centers, so you can see how cities stack up. It's an easy way to spot where you might get the best value for your money. We hope you like it.
What impact is the 2024 general election having on Manchester property prices?
The July 2024 general election and subsequent Labour government have created positive momentum in Manchester's property market through pro-housing policies.
The new government's pledge to boost housing delivery, reform planning regulations, and support infrastructure development has improved market sentiment significantly. These policies particularly benefit Manchester as a key Northern city targeted for growth under renewed Northern Powerhouse initiatives.
Market confidence has strengthened post-election, with buyers and developers anticipating faster planning approvals and increased home building. This political stability, combined with expectations of continued government support for regional development, has contributed to Manchester's robust 7.6% price growth.
The promise of enhanced affordable housing provision and infrastructure investment aligns perfectly with Manchester's growth trajectory. However, the full impact of these policies will unfold gradually throughout 2025 and beyond.
Early indicators suggest the election outcome has reinforced Manchester's position as a prime investment location, with both domestic and international buyers showing increased interest.
Are international buyers still interested in Manchester property?
International buyer interest in Manchester property remains exceptionally strong in 2025, with the city consistently ranking among the UK's top investment destinations outside London.
Foreign investors are particularly drawn to Manchester's city centre apartments and new build developments, attracted by rental yields of 6.35% - significantly higher than many global cities. The combination of relatively affordable prices, strong rental demand, and capital growth potential creates an compelling investment case.
Manchester's world-class universities attract international students, creating a reliable rental market that appeals to overseas landlords. The city's growing reputation as a tech and financial hub also draws international professionals, further supporting both sales and rental markets.
The pound's current exchange rates make UK property particularly attractive to dollar and euro-based buyers, with Manchester offering better value than London while maintaining similar growth prospects.
Major developments like Victoria North and ongoing regeneration projects continue to capture international attention, with many off-plan units being purchased by overseas investors before UK buyers even see them.
How are regeneration projects affecting Manchester property prices?
Major regeneration projects are driving significant property price increases in Manchester, with areas near development sites seeing gains of up to 14%.
The £1.5 billion Victoria North project stands as Manchester's largest regeneration scheme, set to deliver 15,000 new homes over the next decade. Properties in surrounding areas have already seen substantial appreciation as buyers position themselves ahead of completion.
The anticipated HS2 rail link, despite modifications, continues to influence prices positively. Areas near the planned station have experienced the "HS2 effect" with accelerated price growth as improved connectivity promises to slash journey times to London.
Ongoing transformations in Ancoats, Salford Quays, and the expansion of MediaCityUK create ripple effects, pushing up values in adjacent neighborhoods. These projects don't just add housing stock - they bring amenities, employment, and lifestyle improvements that enhance area desirability.
The cumulative effect of multiple regeneration zones has created sustained upward pressure on prices across Manchester, with experts predicting this trend will continue through 2028 and beyond.
What are current mortgage lending trends in Manchester?
Mortgage lending in Manchester has strengthened considerably in 2025, with average mortgage values reaching £252,000 and improved affordability driving increased transaction volumes.
The stabilization of mortgage rates around 4.6% following Bank of England base rate cuts has made borrowing more accessible. First-time buyers in Manchester are particularly active, with average purchase prices of £232,000 requiring smaller deposits than in many other major cities.
Lenders show strong appetite for Manchester properties, recognizing the city's growth fundamentals and lower risk profile compared to more volatile markets. The loan-to-value ratios offered reflect this confidence, with competitive deals available for buyers with 10-15% deposits.
Buy-to-let mortgage products remain popular, supported by Manchester's exceptional rental yields. Lenders particularly favor properties in established rental areas like Fallowfield and city centre locations where student and professional demand ensures consistent income.
The improving mortgage landscape has reduced the cash buyer advantage, democratizing the market and supporting the broad-based demand driving Manchester's 7.6% annual price growth.
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 property prices are definitively going up, with a robust 7.6% annual increase recorded as of June 2025 and strong fundamentals supporting continued growth.
The combination of economic strength, major regeneration projects, favorable lending conditions, and sustained demand from both domestic and international buyers positions Manchester as one of the UK's most dynamic property markets. With expert forecasts predicting cumulative growth of 19.3% by 2028, the answer is clear: Yes a lot - Manchester property prices are rising significantly and show every sign of continuing this trajectory.
Sources
- Office for National Statistics - Manchester House Prices
- InvestRopa - Manchester Property Market Analysis June 2025
- Joseph Mews - Manchester Property Price Forecast 2025
- The Luxury Playbook - Manchester Real Estate Market Overview 2025
- Manchester Property Guide - Market Overview 2025
- PlumPlot - Manchester House Price Data May 2025
- Centrick Invest - Manchester House Price Predictions
- RW Invest - Manchester Property Market Analysis
- CityRise - Manchester Property Prices
- Flambard Williams - Manchester House Price Forecast