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House Prices in Manchester 2024 Predictions and Trends

We take a look at Manchester house prices in 2024. As well as the trends impacting the market and what investors can expect in the coming years. And why investing in properties 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 Housing Market in 2024

Manchester continues to be a leading choice for property investment within the UK, consistently ranking as the preferred destination for landlords looking to expand their portfolios.

What is the Average House Price in Manchester, UK, in 2024?

As of 2024, the average house prices in Manchester have reached £294,276, marking a steady increase. Compared to the previous year, sold prices have risen by 2% and are now 15% higher than the 2020 peak, which stood at £255,800.

Manchester remains a favored location among first-time buyers, even after the closure of the Government Help-to-Buy scheme in October 2022. Between April 2023 and March 2024, the average price of new build properties in Manchester escalated to £309,000, reflecting an 11% increase, or an additional £29,500, over the past twelve months.

How do Manchester House Prices Compare to Other UK Cities in 2024?

When considering affordability relative to other major UK cities, Manchester’s housing market offers compelling value. The average house price in Manchester is currently £231,000, significantly lower than in cities like London, where the average stands at £723,707, and Bristol, at £400,520.

Comparable cities such as Liverpool and Leeds present slightly lower average house prices, at £219,235 and £266,917, respectively, making Manchester an attractive middle ground for affordability coupled with investment potential.

This overview underscores Manchester’s enduring appeal in the UK’s property market, balancing affordability with growth, making it an attractive proposition for investors and first-time buyers alike in 2024.

Recent Trends in Manchester House Prices

Over the past few years, Manchester’s housing market has experienced notable trends, characterized by steady growth in house prices, making it one of the UK’s standout cities for property investment. 

This upward trajectory can be attributed to a combination of economic growth, increased demand, and significant infrastructural developments, positioning Manchester as a key player in the Northern Powerhouse initiative.

House Price Movements

Manchester has seen a consistent rise in house prices, outpacing many other regions in the UK. This growth has been fueled by a robust demand for housing, driven by the city’s growing population and economic prosperity. 

The influx of young professionals, attracted by Manchester’s employment opportunities in sectors such as finance, technology, and creative industries, has further spurred demand for both purchasing and rental properties.

Economic Influences

The city’s economic resilience and expansion have played a critical role in bolstering the property market. Manchester’s economy has benefited from diversification, with significant investments in technology and infrastructure attracting domestic and international businesses. 

This economic buoyancy has increased the city’s desirability as a place to live and work, directly impacting house prices as demand for housing strengthens.

Demand and Supply Dynamics

Manchester’s housing market has been characterized by a mismatch between supply and demand. 

The demand for housing has consistently outstripped supply, leading to competitive market conditions and upward pressure on prices. The city’s appeal to graduates, professionals, and families seeking a high quality of life has only intensified this dynamic. Additionally, the student population has ensured a steady demand for rental properties, appealing to investors and further stimulating the market.

Infrastructural Developments

Significant infrastructural developments have been a key driver of house price growth in Manchester. Projects such as the expansion of the Metrolink tram system, the development of MediaCityUK, and the regeneration of areas like Ancoats and Salford Quays have enhanced the city’s appeal. 

These projects not only improve residents’ quality of life but also attract investment, boosting property values in these areas.

Why is Manchester a Property Investment Hotspot?

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

Manchester’s Growing Population 

The growth of Manchester house prices 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. 

As of 2021, Manchester was the most densely populated of the North West’s 39 local authority areas. Today, there are about 2,791,005 people living in Manchester, and it is one of the most visited cities in the country London and Edinburgh.

With a population close to three million, 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 2024

In 2024, Manchester continues to experience significant regeneration and attract substantial investment, reinforcing its status as a leading city for business, culture, and living in the UK. This influx of investment is not only reshaping the city’s skyline but also enhancing its infrastructure, amenities, and housing stock, contributing to a dynamic and thriving urban environment.

Key Regeneration Projects

  • Northern Gateway: One of the most ambitious regeneration projects, the Northern Gateway aims to transform a vast area north of the city center into a vibrant residential and commercial space. With plans to create thousands of new homes, the project is set to redefine urban living in Manchester, focusing on sustainability and community.
  • Mayfield Park: The creation of Mayfield Park, the city’s first new public park in over a century, is a centerpiece of the broader Mayfield regeneration scheme. This development will include office spaces, retail units, and leisure facilities, creating a new urban hub that combines green space with economic activity.
  • Salford Quays and MediaCityUK Expansion: The continued expansion of MediaCityUK in Salford Quays underscores Manchester’s role as a media and digital powerhouse. The area is set to grow further, with more office spaces, studios, and residential units, attracting businesses and residents alike.

Incoming Investment

  • Transport Infrastructure: Significant investment in Manchester’s transport infrastructure aims to enhance connectivity within the city and with the rest of the UK. Projects like the expansion of the Metrolink tram network and improvements to rail services are key to supporting the city’s growth.
  • Commercial Developments: Manchester has seen a surge in commercial investments, with new office spaces accommodating the growing demand from tech companies, startups, and established firms expanding their presence in the city. This is fostering a dynamic business ecosystem and generating employment opportunities.
  • Residential Development: The housing market is benefiting from both public and private investments, with a focus on creating affordable and sustainable housing options. New developments are not just concentrated in the city center but are also revitalizing surrounding neighborhoods, making Manchester an attractive place to live for a diverse population.
  • Cultural and Educational Institutions: Investment in Manchester’s cultural and educational institutions continues to enhance the city’s cultural landscape and attract international talent. Upgrades to facilities at universities and cultural institutions like the Manchester Museum and the Factory International are enriching the city’s intellectual and cultural offerings.

Impact on the Property Market

The ongoing regeneration and investment in Manchester are having a profound impact on the property market. Areas undergoing redevelopment are witnessing increased property values and demand, offering lucrative opportunities for investors. Moreover, the focus on creating a diverse and sustainable urban environment is attracting a wide range of residents, from students and young professionals to families, bolstering the rental market.

Regional Analysis within Manchester

Manchester’s dynamic property market showcases varied trends across its regions, reflecting the city’s diversity in economic development, lifestyle offerings, and housing demands. Here’s a closer look at house price trends within different areas of Manchester, highlighting regions with significant growth and those with untapped potential.

City Centre

Manchester City Centre continues to experience robust growth in house prices, driven by the demand for urban living, proximity to employment hubs, and a vibrant cultural scene. 

Developments along Deansgate, the Northern Quarter, and Spinningfields have seen considerable appreciation, attracting young professionals and investors. Despite higher price points, the demand for luxury apartments and renovated industrial spaces remains strong.

South Manchester

Areas like Didsbury, Chorlton, and Sale in South Manchester are known for their family-friendly environment, green spaces, and quality local amenities. 

These characteristics contribute to steady house price growth, with Didsbury, in particular, commanding premium prices due to its desirable schools, independent shops, and café culture. These areas offer a mix of substantial period homes and modern developments, appealing to families and professionals alike.

Salford Quays and MediaCityUK

The regeneration of Salford Quays and the development of MediaCityUK have transformed this area into a significant business and entertainment district, home to major broadcasters and creative companies. 

The influx of jobs and investment has spurred demand for housing, with new build apartments and waterfront properties experiencing notable price growth. This area represents a blend of investment opportunities and lifestyle appeal, especially for those working in the media and creative sectors.

East Manchester

East Manchester, particularly areas like Ancoats and New Islington, has seen dramatic transformations from industrial roots to trendy residential neighborhoods. These areas have attracted significant investment in new housing developments, with a focus on innovative design and sustainability. 

While house prices have risen sharply in recent years, these neighborhoods still offer growth potential as the regeneration continues to unfold.

North Manchester

North Manchester, including areas like Prestwich and Harpurhey, presents untapped potential for investors and homebuyers. 

These areas benefit from more affordable housing options, community investment projects, and improving transport links. As regeneration efforts extend northward, these neighborhoods are poised for growth, offering opportunities for those looking to invest at a lower entry point.

Untapped Potential

Emerging areas such as Levenshulme and Moston are beginning to catch the eye of investors and homebuyers seeking affordability and connectivity. 

Levenshulme, with its independent retail scene and strong community spirit, and Moston, benefiting from housing renewal initiatives, represent markets where significant growth is anticipated as Manchester’s development wave continues.

manchester property prices and other UK cities

What are the Best Areas to Invest in Manchester?

1. City Centre

The heart of Manchester is highly attractive for investors due to its constant demand from young professionals and graduates. With an array of shops, restaurants, cultural venues, and employment opportunities, city centre properties often command high rental prices and enjoy low vacancy rates. Areas like Deansgate, the Northern Quarter, and Spinningfields are particularly popular for their lifestyle offerings and connectivity.

2. Salford Quays

Home to MediaCityUK, Salford Quays is a hub for the creative and digital industries, housing major corporations such as the BBC and ITV. The area has seen significant regeneration, transforming it into a desirable residential area with modern apartments and waterfront properties. Salford Quays offers a blend of urban living with a more relaxed waterside environment, appealing to professionals working in MediaCity and central Manchester.

3. Ancoats and New Islington

Ancoats, once an industrial heartland, has undergone a remarkable transformation into one of Manchester’s coolest neighbourhoods, with artisan eateries, independent shops, and a thriving creative scene. Adjacent New Islington offers contemporary living spaces and has been earmarked for further development. Both areas are popular among young professionals and families, offering strong potential for capital growth and rental demand.

4. Hulme

Close to the city centre and Manchester’s universities, Hulme has benefited from regeneration efforts and is now a sought-after location for students and academics. Its proximity to key amenities and relatively affordable property prices make it an attractive option for buy-to-let investors.

5. Chorlton and Didsbury

These suburban areas are popular with families and professionals alike, known for their green spaces, excellent schools, and vibrant local communities. Chorlton and Didsbury offer a more relaxed lifestyle while being well-connected to the city centre, making them ideal for long-term rental investments.

6. The Green Quarter

A newer development close to Victoria Station, the Green Quarter is becoming increasingly popular for its modern, eco-friendly apartment complexes. The area appeals to those who prioritize sustainability and convenience, offering a quick commute to the city centre and attractive amenities.

7. Trafford

Situated just outside Manchester, Trafford is renowned for its excellent schools, making it a prime location for families. Areas like Altrincham and Sale provide a suburban feel with easy access to Manchester’s city centre, offering a balanced investment opportunity between rental yields and capital growth.

8. Northern Gateway

An area to watch, the Northern Gateway is set to become one of the UK’s largest regeneration projects, promising thousands of new homes and commercial spaces. Investors getting in early could benefit from significant appreciation as the project unfolds.

Manchester Property Market Predictions 2024 and Beyond

Over the past three years, Manchester has witnessed a consistently high demand for homes, with prices soaring by 21.8% since the end of 2019. As we step into 2024, the landscape of the Manchester property market presents a complex but optimistic picture.

In 2024, the supply of housing stock in Manchester is expected to remain constrained, a trend that suggests house prices will continue to rise, potentially outpacing other UK cities. Despite this, the property market in Manchester, much like the broader UK market, may not experience the explosive growth seen in 2021 and 2022, as factors such as inflation and rising interest rates begin to exert their influence.

Reflecting on the end of 2022, data from JLL highlighted the average prices for flats in Manchester: £213,000 for a one-bedroom flat, £300,000 for a two-bedroom, and £367,500 for a three-bedroom flat. The forecast for annual house price growth in 2023 was pegged at 5%, with JLL projecting an impressive five-year house price growth forecast of 19.3% through to 2027.

As we look towards the rest of 2024, it’s clear that while the pace of house price increases may not match the heights of the previous two years, the Manchester property market is still poised for growth. This continued growth trajectory, albeit at a potentially moderated pace, underscores the enduring appeal and resilience of Manchester as a prime location for property investment.

Investors and homeowners alike should remain cautiously optimistic. The fundamentals of Manchester’s property market — from its vibrant economy and cultural appeal to ongoing infrastructure improvements and regeneration projects — continue to provide strong underpinnings for investment. However, staying informed and agile in response to changing economic indicators will be key to navigating the market successfully in 2024 and beyond.

Manchester Rental Market Predictions

While property prices in Manchester in 2022 continued to rise, across the UK demand for rental properties greatly outstripped supply, leading to intense competition among tenants.

Manchester was the UK’s best-performing rental market in 2022, recording 20% growth in rents in the city centre. In the Manchester city centre property market, average rents are currently around £1,172 for a one-bed flat, £1,495 for a two bed flat and £2,100 for a three bed flat. 

With a restricted rental supply, February 2023 saw the lowest number of available apartments in any February of the last four years, with only 528 available apartments. This figure is down 76% from February 2021’s high of 2,216 apartments.

As well as a lack of supply, quality build stock has helped push the average price of rents up in Manchester. High specification three bed homes recorded the highest annual growth at 33%, followed by two beds at 22%, making Manchester rent growth appealing for landlords. 

Above Average Rental Yields

Average rental yields across the UK are around 4.7%, and between 5-6% is considered a strong performance. Rental yields in Manchester were at a rate of 5.1% on average, and the property market in the city continues to dominate the market thanks to strong demand and a growing population. 

The Highest Rental Forecast Growth in the UK

Between 2023 – 2027, JLL predicts five year rental forecast growth of 21.6% in Manchester, the strongest in the UK, closely followed by Birmingham at 19.3%.

With a growing population and 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.

What is the Property Market Forecast for Manchester in 2024?

Manchester house price trends have shown consistently high demand for homes in Manchester, and the city is one of the UK’s best performing property markets. With returning students and young professionals, demand is outstripping supply. The five-year sales forecasts puts house prices growth in Manchester at 19.3% through to 2027.

Are House Prices Dropping in Manchester?

If you’re thinking of buying a house in Manchester, in 2023, house prices should continue to increase. Albeit at a slower rate than in 2021 and 2022. 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. According to the latest property news Manchester, JLL predicts house prices to increase by over 5% in 2023 and other predictions put that growth up to 8%.

Is it Worth Buying Property in Manchester?

Manchester is a vibrant city with a strong economy and a rich cultural scene. With renowned universities, and well-known for its music, sports and entertainment industries, in recent years investors have seen the potential that the city offers.

For investors looking for strong rental yields and capital gains growth, Manchester is certainly one of the UK’s most exciting property markets.

What is the Property Prediction for Manchester?

House prices should still rise in the centre of many of the UK’s largest cities in 2023. Manchester should be the strongest market in terms of price growth and over the next 5 years property prices could grow by as much as 19.3%

What are the Lowest Manchester House Prices by Area?

When looking at house prices in Manchester, Wigan is the most affordable borough of Greater Manchester with average property prices of £167,730. Rochdale comes next with an average property price of £190,703.