Manchester property spent the last year outperforming the national market by a large margin, shrugging off the country’s economic uncertainty to keep growing.
The latest monthly rental monitor from Urbanbubble shows that the city continued its strong performance in the first month of 2024. Average asking rents for almost all types of properties are up year-on-year in the busy city centre market which is good news for anyone looking to invest in Manchester property.
The rental highlights are:
- Studios – Average rent of £1,049 pcm; annual increase of 15%
- One-bed apartments – Average rent of £1,146 pcm; annual increase of 9%
- Two-bed apartments – Average rent of £1,519 pcm; annual increase of 9%
- Three-bed apartments – Average rent of £2,106; annual decrease of 5%
Even in the case of three-bed apartments which are renting for a slightly lower average than a year ago, the fact is that rents are decreasing from an all time high, and an average monthly rent of more than £2,100 is still impressive.
Overall, Manchester investment property is a highly rewarding market that offers a lot of potential for investors.
The main cause of these rent rises is the overwhelming imbalance between supply and demand. The monthly rental monitor data shows that there are just 878 apartments available to rent in the whole city at present. This is 67% lower than the number of properties on the market in 2020, showing just how much demand has increased over the last four years.
In the future, construction rates suggest that this supply shortage will only worsen. While 2,600 homes were delivered to market in the last year, there is a shortfall of new properties in construction to follow in the coming years.
Overall, the data shows that there are 15,292 properties in the construction pipeline. This is a reduction of more than 2,900 compared to the same point last year and points to more shortages of rental properties in the future. After all, Manchester’s population growth has not slowed and the City Council continues to forecast the city’s population will grow by 5,000 people a year.
The data on lettings in January 2024 backs this up. Despite being a traditionally quiet time of year for the rental market, there were still more than 450 properties leased in the city over the course of the month, which represents an 11% increase year-on-year.
Fewer available rental homes means that rents are likely to increase in the coming years, and investment properties in Manchester will become even more attractive as a result.
Want to learn more about where to invest in Manchester? Get in touch with the team today.
