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
What is happening in Manchester’s real estate market? Are prices on the rise or decline? Is the city still a magnet for international investors? How are local government policies and taxes shaping the real estate landscape in 2025?
These are the questions we hear every day from professionals, buyers, and sellers across Manchester and beyond. Maybe you’re curious about the same things.
We know this because we stay closely connected with local experts and people like you, exploring the Manchester real estate market daily. That’s why we crafted this article: to offer clear answers, insightful analysis, and a comprehensive view of market trends and dynamics.
Our aim is straightforward: to make sure you feel informed and confident about the market without needing to search elsewhere. If you think we missed the mark or could improve, we’d love to hear your thoughts. Feel free to message us with your feedback or comments, and we’ll strive to enhance this content for you.
How this content was created 🔎📝
1) Foreign buyers will increasingly target Manchester for its growing international reputation
Foreign buyers are increasingly drawn to Manchester for several compelling reasons.
One major factor is that while property prices in Manchester are on the rise, they are still much more affordable than in London. For instance, in 2025, the average property price in Manchester is £234,867, which is significantly lower than London's £523,376. This makes Manchester a great option for international investors seeking value.
Manchester's connectivity is another big draw. The city is home to Manchester Airport, a major international hub with non-stop flights to 187 destinations across 55 countries. This makes it super convenient for international buyers to travel to and from the city. The airport even offers long-haul flights, like a direct route to Singapore, showcasing its global reach.
On the economic front, Manchester is thriving. A growing number of international companies are setting up shop here, contributing to the local economy. Foreign-owned companies add £37 billion to the economy and employ around 172,000 people. This economic vitality makes Manchester a prime spot for international business and investment.
Manchester also ranks highly for Foreign Direct Investment (FDI) in the UK, just behind London. This ranking highlights the city's status as a top location for international business. Its reputation is growing on the global stage, making it an attractive destination for foreign buyers.
With its affordable property prices, excellent connectivity, and thriving economy, Manchester is becoming a hotspot for international investors looking for opportunities outside of London.
Sources: Invest in Manchester, Joseph Mews, Flight Connections, GM Business Board
2) Chinese investors will remain key players in Manchester’s property market
Chinese investors have shown a growing interest in the UK property market, with a notable 76% increase in interest in buying UK property as non-residents in Q3 2023 compared to Q2. This trend continued into 2024, with figures 35% higher than in Q1 2023. This surge in interest is partly due to the growing affordability for Chinese households, which is expected to rise by 50% in 2025, potentially leading to more investments in the UK.
Manchester, in particular, has become a focal point for Chinese investors. The city is recognized as one of the UK's most dynamic property markets, characterized by rising property prices, high rental demand, and ongoing development. This makes it an attractive location for property investors looking for good-value property prices and rental growth that exceeds wage growth. Additionally, Manchester's economy remains one of the strongest in the UK, driven by sectors like digital technology, finance, healthcare, and education, which attract both domestic and international interest.
Furthermore, partnerships between Manchester developers and Chinese firms, such as those involved in regeneration projects like the £4 billion Victoria North initiative, have increased real estate values and attracted a wide range of renters. These collaborations highlight the strong business links between Manchester and China, further solidifying the city's appeal to Chinese investors.
Chinese investors are also diversifying their investment portfolios into international real estate markets, including the UK, driven by economic strategies like the Belt and Road Initiative. In 2023, funding capital deals were the dominant way of Chinese investments into the UK, accounting for 53% of total deal volume, indicating a continued diversification into real estate and other sectors.
Sources: Expat Mortgages UK, The Luxury Playbook, Flambard Williams, Grant Thornton
We created this infographic to give you a simple idea of how much it costs to buy property in different parts of the UK. As you can see, it breaks down price ranges and property types for popular cities in the country. We hope this makes it easier to explore your options and understand the market.
3) Properties with good transport links will experience a steady rise in prices
Properties near good transport links are seeing steady price increases, and this trend is set to continue.
Take Manchester, for example. The expansion of the Metrolink tram system has been a game-changer. Homes within 500 meters of a Metrolink station enjoy a 6.1% price premium over those further away, which means about £11,000 more based on local averages.
The Bee Network, which combines Metrolink, buses, trains, and active travel, is a major factor in this growth. It's designed to make travel both affordable and efficient, making well-connected areas more attractive. Ancoats, a neighborhood in Manchester, has seen remarkable transformations thanks to these improved transport links, becoming a hotspot for young professionals and creatives.
Real estate agencies are buzzing about the demand for homes in these well-connected areas. According to Zoopla’s House Price Index, Manchester topped the charts for annual house price gains in 2024, with a 2.8% year-on-year rise, compared to the UK's 1% average. Even though the premium for being close to a transport station has dipped since the pandemic, properties near transport hubs are still highly sought after.
Neighborhoods with easy access to public transport are not just convenient; they’re also a smart investment. The integration of various transport modes in the Bee Network is a key driver of property price growth, making these areas more appealing and valuable.
So, if you're considering buying property, keep an eye on areas with strong transport links. They’re not just about convenience; they’re about future value and growth potential.
Sources: Nationwide House Price Index, The Luxury Playbook, GM Business Board
4) Student-heavy areas will maintain strong rental yields due to steady demand
Rental yields in student-heavy areas like Manchester have remained strong due to consistent demand, and this trend is expected to continue. In the past, specifically during the 2022/23 academic year, Manchester had a high student population with approximately 123,950 students enrolled at its universities. This large number of students creates a steady demand for housing.
Moreover, the enrollment numbers have been stable and growing, with a net increase of around 23,000 students since 2016/17. This consistent growth in student numbers ensures a continuous demand for rental properties. Additionally, historical data shows that areas such as Fallowfield and Oxford Road have consistently shown high rental yields, with Fallowfield generating an average yield of 6% and Oxford Road 8.2%.
Another factor contributing to strong rental yields is the low vacancy rates in student accommodations. There is a significant undersupply of student housing, with a reported shortfall of more than 23,000 beds. This shortage leads to higher rental prices and fewer vacant periods, making these areas attractive for property investors.
Sources: Statista, Track Capital
5) New regulations will boost affordable housing development in Manchester
Manchester is buzzing with new plans for affordable housing.
Thanks to fresh regulations and initiatives, the city is seeing a big push in this direction. In 2023, over £3 million was funneled into housing projects, leading to the creation of 210 homes, with 119 earmarked as affordable. This funding is smartly focused on brownfield land, which is a win-win for addressing the city's housing needs and providing temporary accommodation.
The Manchester Housing Strategy is another game-changer, aiming to build 36,000 new homes by 2032, with 10,000 set to be affordable. Part of this strategy is Project 500, which is all about teaming up with housing providers to build 500 affordable homes. They're also getting clever with data to create a temporary accommodation model that cuts costs and tackles homelessness.
Public-private partnerships are stepping up too. The Hands On Sourcing Support project has been busy testing the waters with potential partners like social impact funds and pension funds. This collaboration is key to hitting the city's ambitious housing targets.
Sources: Local Partnerships, Manchester City Council, Manchester Housing Strategy Report
Make a profitable investment in Manchester
Better information leads to better decisions. Save time and money. Download our guide.
6) Updated property tax laws will affect investor strategies in Manchester
Changes in property tax laws can significantly impact how investors approach their strategies in Manchester. In 2025, the UK Finance Bill introduced several key changes that altered the tax landscape. For instance, the increase in Capital Gains Tax (CGT) rates from 10% to 18% for the basic rate and from 20% to 24% for the higher rate means that investors will face higher taxes when selling properties, which could deter frequent buying and selling.
Additionally, the reduction in the Investors’ Relief lifetime limit from £10 million to £1 million is a substantial change. This reduction means that investors who previously enjoyed significant tax relief on their investments will now have to reconsider their strategies, possibly leading them to hold onto properties longer or seek alternative investments. The reassessment of property values in Manchester Township, which aims to align property values with true market values, will also affect tax bills starting in 2025, potentially altering the attractiveness of certain investments.
Moreover, the Annual Tax on Enveloped Dwellings (ATED) imposes additional charges on properties owned by companies, which could discourage corporate ownership of high-value properties. These changes, combined with media coverage and expert commentary, suggest that investors will need to adapt their strategies to navigate the new tax environment effectively.
In summary, the combination of higher taxes, reduced reliefs, and reassessed property values will likely lead investors in Manchester to rethink their approaches, focusing on long-term holds or diversifying their portfolios to mitigate the impact of these tax changes.
Sources: Accountancy Age, GOV.UK, Manchester Township
7) Withington will attract investors seeking properties with high rental yields
Withington is quickly becoming a hotspot for property investors thanks to its high rental yields and strategic location.
In recent years, Withington has seen a surge in rental demand, largely because it's so close to major universities like the University of Manchester and Manchester Metropolitan University. This makes it a favorite among students and young professionals, ensuring a steady rental market.
Central Manchester's property prices have skyrocketed, averaging around £300,000, pushing investors to seek more affordable options. Withington stands out as a prime choice, offering strong rental potential in a more budget-friendly package.
Withington boasts an impressive average rental yield of 9.11%, outshining other Manchester suburbs like Openshaw and Ordsall. This makes it a magnet for investors looking for solid rental returns.
The area's mix of student and professional renters adds to its appeal, contributing to its promising rental yield. This blend makes Withington a prime location for property investments.
As rental demand in Manchester continues to grow, Withington's strategic position and attractive yields make it a smart choice for investors. The area's potential for high rental returns is hard to ignore.
Sources: Management and Maintenance, Flambard Williams, Joseph Mews, The Luxury Playbook
8) City center rental yields will dip slightly as more rental properties enter the market
Manchester's city center is buzzing with new residential developments, with around 1,500 homes expected in the Northern Quarter and Grey Mare Lane by 2025/26.
This boom means more rental units will hit the market, and as landlords compete, rental yields might dip slightly. The build-to-rent sector is also on the rise, offering perks like screening rooms and private dining, which adds even more choices for tenants.
With more options, tenants can be picky, and landlords are already offering incentives to attract them. This competitive scene could drive down rental prices and yields.
Remote working is another game-changer, reducing the need for city center living. As more folks work from home, the demand for city center rentals might drop, nudging rental yields lower.
Media reports are buzzing about an oversupply of rental properties in Manchester, which usually means lower rental prices and yields as landlords scramble for tenants.
Sources: Housing Today, Centrick, Joseph Mews
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.
9) Middle Eastern investors will target luxury properties in Manchester’s city center
Middle Eastern investors are increasingly focusing on luxury properties in Manchester's city center for several compelling reasons.
Firstly, the property prices in Manchester have been on the rise, with the average house price reaching £272,000 in 2024, showing a growth rate of 4.9% year-on-year. This growth is significantly higher than the national average, making Manchester an attractive investment destination. In the city center, one-bedroom apartments cost around £220,000, while two-bedroom apartments average about £310,000, indicating a robust market for luxury properties.
Additionally, there has been a notable increase in investment in luxury developments by international firms. Projects like One Port Street in Manchester have attracted significant investments from GCC investors. Saudi Arabian investors, in particular, have been active in the UK’s regional property markets, with plans to expand their portfolios through Manchester-based developments.
Moreover, reports indicate that GCC investors contributed $2.35 billion to luxury property sales in the UK in 2023 alone, highlighting their strong interest in high-end properties. Projections for 2024 estimate that GCC investors will invest $3.2 billion in UK real estate, with a significant portion directed towards luxury properties.
Sources: Magnate Assets, Beech Holdings, The Luxury Playbook
10) Manchester’s property prices will stabilize as the market adapts to post-pandemic conditions
In recent years, Manchester's property market has been experiencing a shift. Between 2023 and 2024, there was a noticeable drop in property sales, with a decrease of 26.5% and 28.9% respectively. This slowdown in transaction activity suggests that the market is cooling off after the rapid changes during the pandemic.
At the same time, new housing developments are being completed, which is increasing the supply of homes. For example, projects like the Residences at Chestnut are adding affordable housing units to the market. This increase in supply helps to balance out demand, which can lead to more stable prices.
Additionally, the growth rate of house prices has been slowing down. In early 2024, the average property price was £270,000, and it's expected to grow by only 3-5% by the end of 2025. This slower growth rate is a sign that the market is stabilizing, as it adjusts to the new conditions post-pandemic.
Sources: Joseph Mews, Plumplot, Manchester Property Investment
11) City center luxury apartment prices will rise modestly due to limited supply
Manchester is buzzing with young professionals and international buyers eager for city life.
The city is thriving with over 1,600 start-ups, employing around 60,000 people, making it a hotspot for opportunities and an attractive place to settle. But there's a catch: the city center has limited land, which means fewer chances to build new luxury apartments.
When you have high demand and limited supply, prices naturally climb. This is exactly what's happening in Manchester's luxury apartment market.
Looking at the numbers, in 2024, property prices in Ancoats jumped by 6%, while the Northern Quarter saw a 5.5% increase. These areas are popular, and the price hikes reflect that.
Real estate agencies are also pointing out a shortage of high-end properties, which only adds to the upward pressure on prices.
So, if you're considering buying a luxury apartment in Manchester, be prepared for modest price increases due to this limited supply.
Sources: The Luxury Playbook, North Property Group
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.
12) Didsbury will remain attractive to families for its excellent schools and green spaces
Didsbury is a top choice for families thanks to its excellent schools and lush green spaces.
In 2024, Didsbury High School earned an Outstanding rating from Ofsted, showcasing the high-quality education available here. This isn't just a one-off; more families are enrolling their kids, proving the demand for Didsbury's top-notch schools is on the rise.
Beyond academics, Didsbury is famous for its green spaces like Didsbury Park. Redesigned in the 1920s, this park offers a children's play area, a football pitch, and bowling greens. It even snagged a Green Flag Award in 2014, a nod to its welcoming and safe environment, bolstered by strong community involvement.
The local government is committed to keeping these green spaces in tip-top shape, investing in their maintenance and improvement. This ensures they remain attractive and safe for families, adding to Didsbury's charm.
Community events in these parks further boost Didsbury's family-friendly vibe. These gatherings make it a lively place where families can connect and enjoy quality time together.
With its blend of excellent schools and inviting green spaces, Didsbury continues to be a magnet for families looking for a vibrant and engaging community.
Sources: Manchester City Council - Didsbury Park, Manchester School Inspection Outcomes
13) Manchester will see increased demand for accessible housing due to an aging population
In recent years, Manchester has seen a significant increase in its elderly population. As of 2023, over 780,000 people aged 55 and over lived in Greater Manchester, making up 27.4% of the city's population. This number is expected to grow rapidly, with a nearly 50% increase in the population aged 75 and over by 2041, adding almost 100,000 more residents.
With this growing number of older adults, there is a rising demand for housing that caters to their specific needs. Many older adults prefer living arrangements that offer independence while also providing support, such as independent living, assisted living, and memory support. This preference is driving the demand for accessible housing options.
Moreover, nearly one in three residents aged 65 or over in Greater Manchester is projected to have a limiting long-term illness by 2035, and just under 8% will have dementia. These health challenges highlight the need for housing that accommodates mobility issues and provides necessary support services.
Sources: The State of Ageing in Greater Manchester, Older People’s Housing Taskforce Report, Greater Manchester Housing Strategy 2019-2024
14) Manchester will see increased housing demand as the growing tech sector attracts more young professionals
Manchester's tech sector has been on a remarkable growth trajectory, especially in the past few years. In 2023, the city was home to 305 high-growth tech companies, and this number was expected to rise in 2024 with new arrivals and expansions. This growth in the tech sector has created a significant number of job opportunities, with more than 69,000 roles advertised in the creative, digital, and tech sectors in 2023.
Major tech companies have been establishing a presence in Manchester, further boosting its reputation as a tech hub. For instance, in 2024, IBM announced its move to a new office in Manchester City Centre to drive innovation and support local businesses. Similarly, Arm, a tech giant valued at £140 billion, expanded its presence by securing the largest commercial letting in two years, occupying 68,860 sq ft at No.1 St Michael’s.
This influx of tech companies and professionals is expected to increase housing demand in Manchester. The expansion of Arm at No.1 St Michael’s is part of a larger trend where tech giants are moving into high-quality, sustainable office spaces, which could drive up housing prices in desirable areas. Additionally, the Greater Manchester Digital Blueprint aims to grow the region’s technology and data sector size to £5.5 billion by 2025, further attracting young professionals to the area.
Sources: Manchester Digital, GM Business Board, Lloyds Bank, GM Business Board, Prolific North
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.
15) City center rental prices will increase as more professionals return to office work
In 2023 and 2024, city living and working dynamics have shifted noticeably.
As professionals head back to the office, rental demand in city centers like Manchester is climbing. This is largely because companies are ditching remote work policies, leading to a surge in office space needs. In 2024, over 332,103 square feet of office space was snapped up in Manchester, and experts predict that prime rents could hit £46.00 per square foot by 2025.
Public transport is bouncing back too, with bus usage in Manchester reaching 86% of pre-Covid levels. This uptick in commuting means more people are working in the city center, which in turn boosts the demand for nearby rentals. The desire to live close to work is clear, as the average rent for a city center apartment has jumped by 25%, with two-bedroom flats now going for £1,600.
Increased foot traffic and higher occupancy rates in city center rentals are pushing prices up. Real estate agents are seeing more interest in these areas, and media reports back up the trend of returning to office work, all pointing to rising rental prices.
Sources: Oktra, Fisher German, Manchester City Council, North Property Group
While this article provides thoughtful analysis and insights based on credible and carefully selected sources, it is not, and should never be considered, financial advice. We put significant effort into researching, aggregating, and analyzing data to present you with an informed perspective. However, every analysis reflects subjective choices, such as the selection of sources and methodologies, and no single piece can encompass the full complexity of the market. Always conduct your own research, seek professional advice, and make decisions based on your own judgment. Any financial risks or losses remain your responsibility. Finally, please note that we are not affiliated to any of the sources provided. Our analysis remains then 100% impartial.