Manchester’s property market has been making headlines, and for good reason. With its resilient past performance, robust demand, and a series of ambitious regeneration projects, Manchester stands out as a prime location for property investors. Still not convinced of Manchester’s status as one of the best places to invest in the UK? Here, we’ll delve into recent research, explore expert forecasts, and examine the driving forces behind Manchester’s sustained growth. Whether you’re an experienced investor or just beginning your property journey, read on to discover why Manchester really ought to be on your radar for 2025 and beyond.
Before we dive into the most up-to-date Manchester house price predictions, it is vital to consider past performance. March 2025 data from the Office for National Statistics (ONS) shows that Manchester’s property values have experienced steady, impressive growth. As of the latest figures, the average value of a house in the area is around £245,000—a 2.3% increase from the previous year, but do consider that “Manchester” covers a large area, so whilst city prices might increase – suburbs might not see the same growth and vice versa. This upward trend isn’t limited to sales figures alone. The rental market, a key indicator of demand, has seen a dramatic boost. In January 2025, the average rental value hit £1300, reflecting an 11.1% increase from £1171 just a year ago. Notably, this surge in rental prices has outpaced the broader North West region, which recorded a 9.7% growth rate over the same period.
This strong past performance underpins the current investor sentiment in Manchester. Consistent appreciation in property values coupled with rising rental yields makes the city an attractive proposition for both buy-to-let investors and those seeking long-term capital gains.
Industry experts remain bullish when it comes to Manchester property price predictions. Research by JLL offers a detailed outlook on the property market in the coming years. According to their forecasts, Manchester house prices are expected to increase by 3.5% in 2025, followed by rises of 4% in 2026, 5% in 2027, and then 3.5% in 2028. Cumulatively, this amounts to a projected growth of 19.3% from 2024 to 2028—well above the UK national average of 17.6%.
But it’s not just the purchase market that’s set to benefit. JLL also forecasts robust gains in the rental sector, predicting annual increases of 4.5% in 2025, 4% in 2026, 3.5% in 2027, and 3% in 2028. This results in a cumulative rental growth of 21.7% over the same period, with only Birmingham expected to outperform Manchester in this arena.
Adding to the optimism, Savills projects that the North West region will see a remarkable overall growth of 28.8% by 2028. Breaking down the figures, Savills expects a year-on-year increase of 4.5% in 2025, 5.5% in 2026, 6.5% in 2027, and 5.5% in 2028. These forward-looking assessments solidify Manchester’s position as a market not only with a strong current performance but also significant potential for future gains.
Several key factors are driving Manchester’s impressive performance, making it one of the most appealing property markets in the UK. Let’s explore these drivers in detail:
A rising population is a fundamental driver of property demand, and Manchester is experiencing this trend in spades. Between 2011 and 2021, Manchester’s population grew by 26.1%, outstripping the national growth rate of 23.4%. This influx of new residents not only increases the demand for housing but also bolsters the rental market. With more people moving to the city, landlords are well-positioned to benefit from sustained rental demand and the consequent upward pressure on rental prices.
Manchester’s urban landscape is undergoing a transformation, thanks to several high-profile regeneration projects that are reshaping the city and attracting investment. Projects like Spinningfields have reinvented parts of the city into modern business and leisure hubs, often being compared to London’s Canary Wharf for their vibrancy and potential. Similarly, the NOMA development—a 20-acre scheme that has seen an investment of over £800 million—has revitalised the city centre, creating dynamic spaces for business, residential, and leisure activities.
The redevelopment doesn’t stop there. The transformation of Salford Quays into a mixed-use precinct combining commercial, residential, and leisure facilities has further cemented the region’s reputation as a regeneration success story. Moreover, Manchester’s ambitious £10 billion “growth locations” plan aims to attract a similar level of investment, with plans to build around 75,000 new homes. Such extensive redevelopment not only enhances the city’s infrastructure and livability but also creates a multiplier effect on the local economy, boosting property demand and value.
Economic vitality is a cornerstone of any thriving property market. Manchester has demonstrated remarkable prowess in job creation, a critical factor that fuels both property purchase and rental demand. Thousands of jobs have been created thanks to foreign direct investment, further driving demand for housing. As the local economy expands, so does the need for both residential and commercial spaces, ensuring that Manchester property investors can count on a steady stream of potential tenants and buyers.
When compared to London, Manchester offers a significantly more affordable entry point for investors. While the average rental value in Manchester is around £1300, this figure is notably lower than the national average of £1369 and dramatically less than what one would pay in London. For instance, rental prices in London boroughs such as Bexley, Hackney, and Chelsea can range from £1411 to over £3600 according to the ONS. This affordability not only attracts tenants—who benefit from lower costs—but also allows investors to secure properties at competitive prices, translating into attractive rental yields. In essence, Manchester provides the perfect balance of value and growth potential, making it an ideal market for property investment.
Manchester’s property market offers a unique combination of steady capital growth, robust rental yields, and a resilient economic base. Here’s why investors should take notice:
For property investors seeking a market that combines current performance with future potential, Manchester represents an outstanding opportunity. The city’s dynamic environment, supported by demographic growth, transformative urban projects, and economic vitality, creates a compelling case for investment.
Manchester is not just experiencing growth—it is transforming into one of the UK’s most exciting and lucrative property markets. With an average house value climbing to £245,000 and rental prices surging by over 11% in just one year, the city has proven its resilience and attractiveness. Forecasts from respected industry analysts like JLL and Savills point to further gains, with cumulative growth rates outstripping national averages. Coupled with strong population growth, major regeneration projects, a thriving job market, and competitive property values, Manchester’s property market is primed for a bright future.
At Centrick Invest, we understand that timing is everything in the world of property investment. With 2025 and 2026 set to be pivotal years for Manchester, now is the perfect time to explore the abundant opportunities available in this vibrant market. Our dedicated team is on hand to guide you through the intricacies of investing in Manchester, ensuring that you can capitalise on the city’s strong growth trends and future potential.
Unlock the full potential of your property investments. Download our free guide, the UK Property Market Forecast 2025, and discover exclusive insights into the Manchester property investment forecast for the year ahead, as well as trends to watch out for across the UK. Get your copy now by filling out the form below and take the first step toward smarter, more informed investing!
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