Authored by the expert who managed and guided the team behind the United Kingdom Property Pack
Yes, the analysis of Manchester's property market is included in our pack
Manchester's property market continues to attract buyers and investors in 2026, with prices holding firm despite broader UK economic uncertainty.
This article covers the current housing prices in Manchester, recent trends, and what experts predict for the months and years ahead.
We constantly update this blog post with fresh data and new forecasts as they become available.
And if you're planning to buy a property in this place, you may want to download our pack covering the real estate market in Manchester.
Insights
- Manchester's average property price of around £252,000 remains nearly 50% lower than London's, making the city a relative bargain for relocators and investors seeking UK exposure.
- Semi-detached houses in Manchester have grown by 3.8% over the past year, outperforming flats which have stayed almost flat in the same period.
- The city centre alone is expected to house 100,000 residents by 2026, creating intense rental demand in core postcodes like M1 and M4.
- Manchester's rental yields average between 5% and 6.5%, significantly higher than the UK national average of around 3.5% to 4%.
- The Victoria North regeneration project will deliver 15,000 new homes over the next 15 to 20 years, reshaping neighborhoods like Collyhurst and Red Bank.
- Greater Manchester's population has grown by nearly 10% since 2011, with 62% of Manchester households renting rather than owning, one of the highest rates in England.
- JLL forecasts Manchester property prices to rise by 19.3% cumulatively between 2024 and 2028, the second highest growth among UK cities after Birmingham.
- The Bank of England base rate is currently 3.75% and is expected to fall further to around 3.25% to 3.5% by mid-2026, improving mortgage affordability.
- Neighborhoods like Ancoats, Levenshulme, and Hulme are seeing above-average price growth due to regeneration, transport links, and demand from young professionals.
- Manchester's economy has grown at 2.8% annually over the past decade, more than double the UK national average of 1.3%.
What are the current property price trends in Manchester as of 2026?
What is the average house price in Manchester as of 2026?
As of early 2026, the average house price in Manchester is approximately £252,000, which translates to around $318,000 USD or €302,000 EUR at current exchange rates.
When looking at price per square meter, properties in Manchester average around £3,000 per square meter (about $3,780 USD or €3,600 EUR), though this figure varies significantly between city centre apartments and suburban family homes.
For context, roughly 80% of property purchases in Manchester fall within the £150,000 to £400,000 range (approximately $190,000 to $505,000 USD or €180,000 to €480,000 EUR), with first-time buyers typically entering at the lower end around £230,000.
How much have property prices increased in Manchester over the past 12 months?
Over the past 12 months, Manchester property prices have increased by approximately 2% to 3%, with a midpoint around 2.5%, reflecting a steady rather than spectacular market in late 2025 and early 2026.
Across different property types in Manchester, the range of price increases varies noticeably: semi-detached houses have risen by around 3.8%, terraced houses by about 2.5%, while flats and apartments have remained nearly flat with growth close to 0%.
The single most significant factor behind this price movement in Manchester has been the persistent imbalance between housing supply and demand, driven by population growth, strong rental demand from students and young professionals, and limited new housing completions relative to household formation.
Which neighborhoods have the fastest rising property prices in Manchester as of 2026?
As of early 2026, the top three neighborhoods with the fastest rising property prices in Manchester are Ancoats and New Islington, Levenshulme, and Hulme, all benefiting from regeneration investment and strong demand from young professionals and families.
In terms of approximate annual price growth, Ancoats and New Islington have seen increases of around 5% to 6%, Levenshulme approximately 4% to 5%, and Hulme around 4%, though exact figures vary by street and property type.
The main demand driver explaining why these Manchester neighborhoods are experiencing the fastest price growth is the combination of improved transport links, proximity to the city centre, and ongoing regeneration that brings new amenities, better public spaces, and quality housing stock to previously overlooked areas.
By the way, you will find much more detailed price ranges across neighborhoods in our property pack covering the real estate market in Manchester.
We have made this infographic to give you a quick and clear snapshot of the property market in the UK. It highlights key facts like rental prices, yields, and property costs both in city centers and outside, so you can easily compare opportunities. We’ve done some research and also included useful insights about the country’s economy, like GDP, population, and interest rates, to help you understand the bigger picture.
Which property types are increasing faster in value in Manchester as of 2026?
As of early 2026, the ranking of property types by value appreciation rate in Manchester is: semi-detached houses at the top, followed by terraced houses, then detached houses, and finally flats and apartments showing the slowest growth.
The approximate annual appreciation for the top-performing property type in Manchester, semi-detached houses, is around 3.8% to 4%, reflecting sustained demand from families seeking space and gardens at relatively affordable prices.
The main reason semi-detached houses are outperforming other property types in Manchester is the "work-from-home effect" that increased demand for extra space, combined with limited supply in popular school catchments and family-friendly neighborhoods.
Finally, if you're interested in a specific property type, you will find our latest analyses here:
- How much should you pay for a house in Manchester?
- How much should you pay for an apartment in Manchester?
- How much should you pay for a townhouse in Manchester?
What is driving property prices up or down in Manchester as of 2026?
As of early 2026, the top three factors currently driving Manchester property prices are: persistent housing undersupply relative to population growth, strong rental demand from students and young professionals, and ongoing major regeneration projects that are transforming entire neighborhoods.
The single factor with the strongest upward pressure on Manchester property prices is the chronic housing shortage: the city needs approximately 5,000 new homes per year to meet demand, but actual delivery has averaged only about 1,000 to 2,000 homes annually for the past decade.
If you want to understand these factors at a deeper level, you can read our latest property market analysis about Manchester here.
Get fresh and reliable information about the market in Manchester
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What is the property price forecast for Manchester in 2026?
How much are property prices expected to increase in Manchester in 2026?
As of early 2026, Manchester property prices are expected to increase by approximately 3% to 4% over the course of the year, with a midpoint forecast around 3.5%.
The realistic range of forecasts from different analysts for Manchester property price growth in 2026 spans from around 2% on the conservative end (Rightmove's national view) to 5.5% on the more optimistic end (Savills' North West regional forecast), reflecting genuine uncertainty about economic conditions.
The main assumption underlying most price increase forecasts for Manchester is that the Bank of England will continue to gradually reduce interest rates in 2026, improving mortgage affordability and supporting buyer demand without triggering a sharp price surge.
We go deeper and try to understand how solid are these forecasts in our pack covering the property market in Manchester.
Which neighborhoods will see the highest price growth in Manchester in 2026?
As of early 2026, the top neighborhoods expected to see the highest price growth in Manchester are Ancoats and New Islington, Victoria North corridor areas like Collyhurst and Red Bank, Hulme, and Levenshulme, all sitting at the intersection of regeneration and strong rental demand.
The projected price growth percentage for these top Manchester neighborhoods ranges from approximately 4% to 6% for the year, compared to the city-wide average of around 3% to 4%.
The primary catalyst driving expected growth in these Manchester neighborhoods is major public and private investment in infrastructure, new homes, parks, and transport links, particularly the £4 billion Victoria North regeneration program.
One emerging neighborhood in Manchester that could surprise with higher-than-expected growth is Ardwick, which is benefiting from university expansion, proximity to the city centre, and gradual spillover demand from more established nearby areas.
By the way, we've written a blog article detailing what are the current best areas to invest in property in Manchester.
What property types will appreciate the most in Manchester in 2026?
As of early 2026, the property type expected to appreciate the most in Manchester is semi-detached houses, followed by terraced houses, with flats and apartments expected to show more modest growth.
The projected appreciation percentage for semi-detached houses in Manchester is approximately 4% to 5% for 2026, driven by persistent family demand and limited supply in desirable school catchments.
The main demand trend driving appreciation for semi-detached houses in Manchester is the sustained preference for homes with gardens and extra space, a behavioral shift that solidified during the pandemic and shows no signs of reversing.
The property type expected to underperform in Manchester in 2026 is city centre apartments, particularly new-build units with high service charges, where oversupply in certain blocks and investor exit pressure may limit price growth to 0% to 2%.
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 will interest rates affect property prices in Manchester in 2026?
As of early 2026, the estimated impact of current interest rate trends on Manchester property prices is moderately positive, with gradual rate cuts expected to improve affordability and support buyer demand throughout the year.
The current Bank of England base rate is 3.75%, and most economists expect mortgage rates to continue falling gradually, with the base rate potentially reaching 3.25% to 3.5% by mid-to-late 2026.
A 1% reduction in interest rates typically improves purchasing power by around 10% to 12% in Manchester, meaning buyers could potentially afford properties priced £25,000 to £30,000 higher for the same monthly payment.
You can also read our latest update about mortgage and interest rates in The United Kingdom.
What are the biggest risks for property prices in Manchester in 2026?
As of early 2026, the top three biggest risks for Manchester property prices are: interest rates not falling as expected if inflation proves sticky, a weakening jobs market that could reduce buyer confidence and purchasing power, and localized oversupply of city centre apartments putting downward pressure on certain segments.
The single risk with the highest probability of materializing in Manchester is that mortgage rates remain elevated for longer than expected, which would continue to constrain affordability and keep transaction volumes below historical norms.
We actually cover all these risks and their likelihoods in our pack about the real estate market in Manchester.
Is it a good time to buy a rental property in Manchester in 2026?
As of early 2026, the overall assessment is that Manchester can still be a sensible market for rental property investment, but success depends heavily on choosing the right property type, location, and maintaining disciplined underwriting on costs.
The strongest argument in favor of buying a rental property now in Manchester is the city's exceptional rental demand: average monthly rents have reached approximately £1,330, yields range from 5% to 6.5%, and 62% of Manchester households rent rather than own, creating a deep and durable tenant pool.
The strongest argument for waiting before buying a rental property in Manchester is that mortgage costs remain elevated compared to the 2010s, meaning cashflow can be tight, and some city centre apartment segments face oversupply that could pressure rents and capital values in the short term.
If you want to know our latest analysis (results may differ from what you just read), you can read our assessment on whether now is a good time to buy a property in Manchester.
You'll also find a dedicated document about this specific question in our pack about real estate in Manchester.
Buying real estate in Manchester can be risky
An increasing number of foreign investors are showing interest. However, 90% of them will make mistakes. Avoid the pitfalls with our comprehensive guide.
Where will property prices be in 5 years in Manchester?
What is the 5-year property price forecast for Manchester as of 2026?
As of early 2026, the estimated cumulative property price growth expected over the next 5 years in Manchester is approximately 25% to 30%, based on mainstream forecaster projections for the North West region.
The range of 5-year forecasts for Manchester spans from a conservative scenario of around 18% to 20% cumulative growth (if economic conditions disappoint) to an optimistic scenario of approximately 35% (if rates fall faster and growth accelerates).
The projected average annual appreciation rate over the next 5 years in Manchester is approximately 4.5% to 5.5% per year, which would outpace the UK national average and most southern regions outside London.
The key assumption most forecasters rely on for their 5-year Manchester property price predictions is that interest rates will normalize to around 3% to 3.5%, wage growth will continue to support affordability, and the city's regeneration and jobs pipeline will sustain demand.
Which areas in Manchester will have the best price growth over the next 5 years?
The top three areas in Manchester expected to have the best price growth over the next 5 years are the Victoria North corridor (including Collyhurst and Red Bank), Ancoats and New Islington, and Levenshulme, all benefiting from significant regeneration investment and transport improvements.
The projected 5-year cumulative price growth for these top-performing Manchester areas ranges from approximately 30% to 40%, compared to the city-wide average of around 25% to 30%.
This longer-term forecast is broadly consistent with our shorter 2026 outlook, though the 5-year view amplifies the regeneration effect because major projects like Victoria North will have progressed significantly, with thousands of new homes completed and infrastructure delivered.
The currently undervalued area in Manchester with the best potential for outperformance over 5 years is Collyhurst, where the Victoria North regeneration is delivering new council homes, a planned Metrolink station, and quality green spaces that will transform what has historically been one of the city's most deprived neighborhoods.
What property type will give the best return in Manchester over 5 years as of 2026?
As of early 2026, the property type expected to give the best total return over 5 years in Manchester is well-located terraced and semi-detached houses in strong school catchments, combining solid capital growth with reliable rental demand.
The projected 5-year total return (appreciation plus rental income) for this top-performing property type in Manchester is approximately 50% to 60% cumulative, assuming around 25% to 30% capital growth plus annual rental yields of 4% to 5% compounded.
The main structural trend favoring family houses over the next 5 years in Manchester is the persistent shortage of quality housing stock relative to household formation, combined with continued preference for space and gardens that shows no sign of reversing.
The property type offering the best balance of return and lower risk over 5 years in Manchester is two-bedroom apartments in established, well-managed buildings in areas like Didsbury or Chorlton, which offer slightly lower returns than houses but with more predictable tenant demand and lower maintenance surprises.
How will new infrastructure projects affect property prices in Manchester over 5 years?
The top three major infrastructure projects expected to impact Manchester property prices over the next 5 years are Victoria North (a £4 billion regeneration delivering 15,000 homes), the Sandhills Metrolink extension, and the continued development of the Mayfield quarter near Piccadilly station.
The typical price premium for properties near completed infrastructure projects in Manchester is approximately 10% to 20% above comparable properties further away, with the premium building gradually as construction progresses and amenities open.
The specific Manchester neighborhoods that will benefit most from these infrastructure developments are Collyhurst, Red Bank, and New Cross (from Victoria North), Miles Platting and Ancoats (from improved Metrolink connectivity), and the Piccadilly fringe (from Mayfield's new park and commercial space).
How will population growth and other factors impact property values in Manchester in 5 years?
The projected population growth rate for Manchester over the next 5 years is approximately 5% to 6% for the city proper (reaching around 630,000 residents) and around 3% to 4% for Greater Manchester (approaching 3 million), creating sustained pressure on housing demand.
The demographic shift with the strongest influence on Manchester property demand is the continued influx of young professionals aged 25 to 40, drawn by the city's job market, universities, and relatively affordable housing compared to London and the South East.
Migration patterns, both domestic (from London and the South) and international (students, skilled workers), are expected to continue supporting Manchester property values over 5 years, with the city's position as the UK's second city for business and culture attracting ongoing inward movement.
The property types and areas that will benefit most from these demographic trends in Manchester are city fringe apartments and terraced houses popular with young professionals (like Ancoats, Hulme, and Levenshulme), and family homes in good school catchments (like Didsbury and Chorlton) as this cohort ages and has children.
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 is the 10 year property price outlook in Manchester?
What is the 10-year property price prediction for Manchester as of 2026?
As of early 2026, the estimated cumulative property price growth expected over the next 10 years in Manchester is approximately 35% to 45% in the base case, which would take the average property price from around £252,000 today to approximately £340,000 to £365,000 by 2036.
The range of 10-year forecasts for Manchester spans from a conservative scenario of approximately 15% to 25% cumulative growth (if economic conditions remain challenging) to an optimistic scenario of 50% to 60% (if rates fall faster and Manchester's growth story accelerates).
The projected average annual appreciation rate over the next 10 years in Manchester is approximately 3% to 4% per year, reflecting the expectation that growth will normalize after the initial rate-cut-driven boost in the late 2020s.
The biggest uncertainty factor in making 10-year property price predictions for Manchester is the future path of interest rates and inflation: if the UK enters a prolonged period of higher rates, affordability constraints would significantly dampen price growth regardless of local demand fundamentals.
What long-term economic factors will shape property prices in Manchester?
The top three long-term economic factors that will shape Manchester property prices over the next decade are: income growth and employment levels, the interest rate and mortgage availability regime, and the balance between housing supply and household formation in the city.
The single long-term economic factor with the most positive impact on Manchester property values is the city's structural economic strength: Greater Manchester has consistently grown faster than the UK average, attracts major employers, and has a diverse economy spanning finance, technology, media, healthcare, and manufacturing.
The single long-term economic factor posing the greatest structural risk to Manchester property values is a sustained period of housing oversupply in specific segments, particularly city centre apartments, which could emerge if build-to-rent development outpaces tenant demand growth.
You'll also find a much more detailed analysis in our pack about real estate in Manchester.
What sources have we used to write this blog article?
Whether it's in our blog articles or the market analyses included in our property pack about Manchester, we always rely on the strongest methodology we can and we don't throw out numbers at random.
We also aim to be fully transparent, so below we've listed the authoritative sources we used, and explained how we used them and the methods behind our estimates.
| Source | Why It's Authoritative | How We Used It |
|---|---|---|
| ONS Housing Prices in Manchester | The UK's official statistics office publishing the UK HPI and rent stats. | We used it as our anchor for Manchester's average sold price and rent levels. We extended the October 2025 data into January 2026 using market indicators. |
| UK House Price Index Data Downloads | The official National Statistics dataset behind UK price indices. | We used it to sanity-check ONS local figures and understand methodology. We cross-referenced time series for consistency. |
| HM Land Registry UK HPI Browser | The official recorder of property transactions in England and Wales. | We used it to cross-check property-type trends and align Manchester's movement with national patterns. |
| Bank of England Monetary Policy Summary | The central bank and official source for the Bank Rate decision. | We used it to set the January 2026 interest-rate backdrop and anchor mortgage-rate direction assumptions. |
| Reuters Nationwide Coverage | A top-tier newswire clearly attributing numbers to Nationwide's index. | We used it to anchor late-2025 momentum and 2026 expectations. We treated it as directional and cross-checked with official data. |
| Rightmove House Price Index | A major UK portal with a long-running index and transparent methodology. | We used it as a forward-looking sentiment check on asking prices. We reconciled it with official sold price data. |
| Rightmove 2026 Forecast | The same major index provider explaining its forecast and assumptions. | We used it to triangulate a reasonable 2026 growth band. We kept Manchester slightly higher based on relative affordability. |
| Savills Mainstream Residential Forecasts | A global real-estate consultancy with a published forecast framework. | We used it for the 5-year baseline and North West vs UK growth profile. We translated regional percentages into Manchester estimates. |
| OBR Economic and Fiscal Outlook | The UK government's independent fiscal watchdog producing official forecasts. | We used it to anchor macro assumptions for housing like growth, inflation, and incomes. We mapped these to demand drivers. |
| HM Treasury Forecasts for UK Economy | Compiles independent forecasts in one official place for cross-checking. | We used it to triangulate uncertainty bands around growth and inflation. We reflected this as scenario ranges in our forecasts. |
| ONS Average Weekly Earnings | The official pay growth series used widely for affordability analysis. | We used it to frame whether wages are helping affordability. We linked pay growth to what buyers can realistically borrow. |
| GMCA Greater Manchester Forecasting Model | The regional authority's forecasting work that is policy-relevant. | We used it to ground Manchester's medium-term demand story. We used it as a reality-check on long-run growth drivers. |
| Manchester City Council Victoria North | The primary source for a major, quantified regeneration pipeline. | We used it to identify the pipeline of new homes reshaping supply. We explained how large regeneration lifts nearby values over time. |
| JLL Residential Forecasts | A leading global real estate services firm with respected UK forecasts. | We used their Manchester-specific projections for 2026-2028 price and rental growth. We compared their view with other forecasters. |
| Nationwide Building Society | One of UK's largest lenders with a widely-followed house price index. | We used their monthly data to track late-2025 momentum. We incorporated their 2026 guidance into our forecast range. |
| Bank of England Effective Interest Rates | Official statistics on actual borrowing and deposit rates in the market. | We used it to triangulate mortgage pricing direction. We translated this into practical buyer affordability implications. |
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If you want to go deeper, you can read the following: