Manchester Growth Market Insights

According to data from Home.co.uk as of April 2023, the average monthly rental income in Manchester stands at approximately £1,498.

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This amount surpasses the UK average by £314, despite the fact that average UK property prices are 24.61% higher compared to property prices in Manchester.

Thanks to substantial rental returns and affordable property rates, investment properties in Manchester boast an average gross rental yield of 7.78% – outperforming the average rental yield in Birmingham, Leeds, London, and Newcastle.

These statistics are expected to further improve. A recent report by JLL has forecasted a rental price growth in Manchester of 3% in 2023 – surpassing the UK average of 2.5%. Additionally, there's a predicted 5-year growth of 21.6%, indicating a significant surge.

Consequently, there has arguably never been a more opportune time to invest in Manchester buy-to-let property.

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Undersupply in Manchester's Rental Market
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A significant factor driving the immense growth observed in Manchester's property market is the substantial undersupply of properties in the city.

Nationally, there's been a record surge in tenant demand. A 2022 report from Rightmove revealed that the number of buyers inquiring about UK homes is 15% higher compared to the same period last year.

This demand is even more pronounced in the North West and appears to be accelerating. A 2020 study by Zoopla found that the supply-demand ratio in Manchester stands at approximately 1:5. This implies that for every property available, five individuals are seeking a home. This figure, according to the BBC, is now 1:30 in the North West.

The surge in demand aligns with the considerable population growth in the region over the past two decades. This growth was particularly pronounced in the city of Manchester itself, where the population is now 27.8% higher than it was 30 years ago.

The increasing population underscores the necessity for homes in Greater Manchester, presenting positive prospects for buyers eyeing potential rental or tenanted properties for sale in and around Manchester.

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If you’re looking to grow your portfolio, our team of experts can source property on your behalf, get it into let-ready condition and find and manage your tenants. Please contact us on 0161 790 4325 to discuss your needs further.