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Manchester House Prices: Manchester Property Market in 2022

We take a look at Manchester house prices in 2022, trends impacting the market, what investors can expect in the coming years and why investing in property in Manchester could make a great return on investment.

In the past two decades, Manchester’s property market has witnessed exceptional growth, surpassing other cities to become one of the UK’s hottest property investment destinations.

With ongoing regeneration, a growing population and a buoyant job market, the city’s attraction knows no bounds and property prices continue to rise across the board.


The Current State of the Manchester Property Market 

Manchester continually ranks top amongst UK cities for property investment and the destination that landlords are most likely to invest in.

How much does a house cost in Manchester, UK? The average property price in a Manchester postcode is currently £231,000. In the last year alone, Manchester property prices increased by over £13,000. In 2021, 12,800 property sales and transactions were completed, the majority of which were in the £150,000 – £200,000 price range, followed by the £100,000 – £150,000 price range with 2620 properties sold.

Manchester is proving popular with first-time buyers due to relatively cheaper housing compared to other cities in the UK. Government incentive schemes like Help-to-Buy are assisting first-time buyers to get onto the property ladder. Last year, new build properties sold for an average of £253,000. 

How do Property Prices in Manchester Compare to Other UK Cities?

manchester property prices and other UK cities

Housing in Manchester is one of the most affordable cities in the UK. While average prices in Manchester sit at £231,000, average house prices in London are £675,309 and Bristol £316,177. 

Liverpool and Leeds are major UK cities that are slightly cheaper, at £152,974 and £207,238, respectively. 

Why is Manchester a Property Investment Hotspot?

With record property price growth in recent years, a few key factors are driving Manchester’s appeal and house price growth:

  • Manchester’s Growing Population 

House price growth is being driven in part by Manchester’s growing population. As the population rises, there is an increase in the demand for properties alongside increasing property prices due to insufficient supply. 

Manchester’s population is currently around three million, meaning there’s plenty of potential for rental investments. Investors that can purchase property below market value will be able to generate impressive yields due to the consistently high costs of rent. In addition, the city has one of the UK’s most thriving student populations, also spurring demand for housing as well as helping to drive the area’s booming economy. 

Interested in investing in student accommodation? Check out our guide: Best Student Accommodation Areas in the UK

  • Manchester Regeneration and Incoming Investment 

In the past two decades, Manchester has undergone nothing short of an urban renaissance. Regeneration and investment is a major contributor to its growth, changing the landscape of the city and increasing its appeal. Regeneration projects boost the quality of living, drawing businesses to the area which make the city more appealing and increase its livability. 

MediaCityUK is a 200-acre mixed-use property development on the banks of the Canal in Salford, home to companies like the BBC, ITV, the University of Salford and around 40 service companies. NOMA Manchester is another mixed-use redevelopment scheme. The £800 million and 20-acre investment is the largest development project in North West England and plays a major role in attracting more companies to invest in Manchester.

Spinningfields is the city’s financial centre and a shopping and entertainment destination with bars, restaurants, Manchester Opera House and the People’s History Museum.

As well as major businesses, Manchester ranks in the top 10 global destinations for startups.

With the cost of living around 31% cheaper than in London, recent years have seen many businesses relocate north. In addition, the pandemic spurred a small exodus from London as people sought out more space and quality living for their money. 

  • Manchester Housing Shortfall 

2021 saw the completion of thousands of apartments in high demand areas. Even with the completion of these apartments, there is still not enough to meet the city’s centre population growth. 

Manchester city council estimate that the city centre population will surpass 100,000 by 2025, adding 5,000 more people a year moving in the centre of the city. It’s expected that demand will further push up property prices and increase capital gains, especially for those buying off-plan property in Manchester (read more in our guide to off-plan property investment).

Manchester Property Market Predictions 2022


In 2022, a few things will impact the growth of the property market. Housing stock is expected to remain low, which would mean house prices are likely to stay strong. With plenty of property developments in the works, it’s likely that Manchester’s growing house prices are likely to exceed other cities in the UK. 

Manchester’s housing market is unlikely to see the same growth as in 2021, particularly with the end of the Stamp Duty waiver, increasing inflation and interest rates on the rise. 

In 2022, growth is likely to be lower, but still impressive. However, the cost of borrowing, while not as low as it was, is still relatively inexpensive, and as long as borrowing costs are kept low, there is likely to be healthy demand. 

Overall in 2022, house prices are unlikely to see the same accelerated pace as in 2021, but continued property price growth over the year is likely. 

Manchester Rental Yields in 2022

Average rental yields across the UK are around 4.5%, and between 5-6% is considered a strong performance. In Manchester, yields currently sit between 5-7% and in some areas, for example in the M5 postcode of Salford, you can find returns of 10% and higher. 

Out of all the cities in the UK, Manchester house prices in 2022 are looking optimistic. With a growing population, regeneration improving the area’s livability, there’s strong demand for rental properties and with the right property in the right area, landlords can make good returns.

Manchester Property Market Predictions 2022 and Beyond 

manchester property market predictions

The forecast for Manchester’s property market looks optimistic. The city is expected to see the highest sales price and rental growth of any UK city through to 2025 – even with the high amount of property development in the works.  

By 2025, house prices are predicted to grow by around 18%. Looking regionally, the North West is expected to see strong house price growth. House prices are expected to rise by around 6% in 2022, 5.5% in 2023 and 2024, and 4.5% in 2025 – a 28.5% rise by 2025.

With strong predicted growth, now is a great time to buy property and invest in Manchester. Manchester house prices in 2022 are expected to rise and with high-quality residential property on offer and more developments in the works, landlords can find highly desirable properties to spur tenant demand and gain great yields and capital growth.


  • Are house prices falling in Manchester?

In 2022, house prices in Manchester are expected to continue to increase, albeit at a slower rate than in 2021. If demand for homes continues to surpass the number of those coming onto the market, it’s likely that property prices will continue to rise. 

  • What are the lowest Manchester house prices by area?

The most affordable areas of Greater Manchester include Rochdale, with an average property price of £144,551. One of the cheapest areas across the region, it is particularly appealing to first-time buyers. Wigan is second on the list with an average property price of £145,560, up 10% since 2020. 

  • What are the best areas to invest in Manchester?

  • Salford

Salford has seen annual price growth of 7.3%, with the average home now costing £175,200, up from £163,300 in January 2021. Manchester Waters is one of the remaining large-scale regenerations being undertaken in the area and offers walking distance to the centre. With one and two-bedroom apartments, one of the major appeals is its proximity to MediaCityUK. Rental yields are expected to reach 6%, making properties in the development a good investment.

  • Oldham

Manchester’s Oldham area saw the highest annual house price growth out of Manchester’s 10 boroughs. Property prices increased 11.9% in the past year with the average home costing £155,100, up from £138,600 in January 2021. Unrivalled countryside, small villages and more space for your money certainly add to Oldham’s appeal – almost 25% of the borough lies within the Peak District National Park.

  • Trafford

Trafford is currently the borough with the highest house prices in Greater Manchester. Average prices in January 2021 were £294,200. By January 2022, these increased to 7.8% to £317,200. A popular area for families, Trafford borders Cheshire but offers an easy commute to Manchester city centre. It’s no secret that Trafford is home to some of the country’s best schools – good accommodation in sought-after school catchment areas starts from £250,000.