Why Manchester is one of the UK’s best property investment locations

March 26, 2025

Where to invest in UK buy-to-let? It’s always the most important question for domestic and overseas investors – and the answer always seems to be changing.

Up-and-coming markets become established; established markets get less attractive once they become saturated or the price gets too high. However, there is one UK market that has stood at the top of the UK investment location rankings for a long time now. Even better, it shows no sign of relinquishing the top spot in the future.

Property for sale in Manchester city centre is the most popular choice for investors around the world for good reason. Read on to find out why anyone looking to buy UK property in 2025 should be focussing on Manchester.

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House price growth isn’t slowing down

Property values in the city have been increasing for a long time. Since the year 2000, the average house price in Manchester has gone up by approximately 500% according to research in the Manchester Evening News.

That growth didn’t even stop during the recent economic uncertainty. Figures from the Office for National Statistics show Manchester house prices went up 2.9% in 2023 when the national average house price fell by 1.5% in England. In the last 12 months, Manchester prices have increased 1.5% faster than the national average.

In the future, JLL has predicted a further 21.8% growth in Manchester by the end of 2028, and Savills has forecast 29.4% growth in the North West by the end of 2029. That will be driven by Manchester and focussed on the city – making now the best time to buy property in Manchester.

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The shortage of housing in Manchester is causing rents to increase at a fast pace

Rents in Manchester are also growing fast and have been for years. While the pace has slowed from the 20% growth seen in 2023, data from the Office for National Statistics confirms that rental inflation is still extremely strong in the city.

The average rent in Manchester is now £1,300 – a growth of 11.1% in the last year – and JLL has predicted that they will go up another 19.3% by the end of 2028. That is being driven by huge population growth and extremely low availability of homes, in particular luxury city centre properties.

City Council estimates show that Manchester’s population will have grown by 80,000 in just 10 years by the end of this decade. At the same time, the Deloitte Manchester Crane Survey 2025 shows that there are just over 10,000 homes set to be completed in the city by the end of 2029.

That means demand is going up at the same time supply is going down. It’s the long-term dynamic which investors want to see the most. While nothing is ever certain in the world of buy-to-let investment, the facts in Manchester point to a substantial return on investment now and in the future.

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Why are so many people moving to Manchester?

Manchester is a popular destination for young professionals, families, students and people leaving London – but why is that? That’s the question investors need to ask to understand the city’s popularity and long-term appeal.

It’s a cultural hub with world-class attractions for everyone, no matter what you want to do. It’s also home to high-end retail, bars, restaurants and cafes that make a place worth living. Additionally there are new green spaces being developed, making Manchester a more enjoyable and healthier place to be.

The universities are world-famous, and there are high-quality jobs on offer in all the most popular and significant modern industries. The government is moving more and more of the Civil Service to Manchester too, giving the city a national stamp of approval and anchoring it as the UK’s alternative to London.

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Major regeneration investment keeps Manchester’s momentum going

Manchester isn’t just a great place to live now, it’s getting better all the time thanks to billions of pounds of investment and regeneration.

Where most towns and cities would be happy to have a single major regeneration project underway, Manchester has closer to 10 projects that are all worth £1bn or more. Many of them are intended to last decades, and all of them are helping to transform the city with new homes, better jobs, improved public realm and much more.

Why should investors care about regeneration and masterplan developments? Because regeneration masterplans helps accelerate house price growth and add a premium to your return on investment. CBRE research shows homes in these areas appreciate 2.2% more than regular properties.

Put another way, regeneration can supercharge your portfolio – and as a reminder, Manchester has at least eight separate masterplan areas worth £1bn or more, along with smaller projects in between those that are also worth hundreds of millions of pounds.

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Where to invest in Manchester?

For investors, that means Manchester is not just a city with rising house prices, growing rents and a shortage of available properties. It’s also easy to buy in an area where you can expect even faster growth than normal.

For example, Waterhouse Gardens is one of the most exciting and ambitious new developments in Manchester. It contains 556 homes, 30,000 sqft of commercial space, green spaces, a gym, swimming pool and more. It’s also located close to three separate masterplan developments, meaning it is in the exact right location for high house price growth and rents.

It’s also only a short walk from Manchester city centre, Manchester Victoria Station and Spinningfields. Additionally, residents get access to the desirable new Great Ducie Street area which is in the process of being redeveloped.

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Investing in Manchester in 2025

Manchester is the UK’s best buy-to-let property location, and the earlier you buy in 2025 the more you will earn from house price and rental growth in the years to come.

If you want to learn more about Manchester and the UK buy-to-let market, get the latest insights on our website today and contact our team of property experts who will be able to help you find the perfect investment to add to your portfolio.

Why Manchester is one of the UK’s best property investment locations

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