Manchester rents are once again soaring as property supply and demand cannot be met. This had led to want-to-be residents pleading for affordable properties located in and around the city centre.
Surprisingly, the number of properties available to rent in Manchester may be lower than many residents think, with just 360 reported to be available. However, this isn’t too unexpected, as over the last 12 months, the northwest has seen one of the largest jumps in house prices in the country, and according to Zoopla’s price index, these properties are experiencing some of the strongest yields also.
“Over the last 12 months, while asking rents have increased by a significant 15.8%, achieved rents have increased by 19.5% [on average]”
Not only have these strong rental yields seen an increase of around 38% in areas of Manchester city centre, but areas surrounding the city have also seen an impressive increase, with the likes of Salford and Trafford increasing by 20% over the last year.
“A studio apartment in Central Trafford now costs more to rent than a two-bed apartment in the same area did just four years ago,”
The overall property market in Manchester has seen an average positive rise of 9.5%, with the most affordable markets seeing the largest increase of interest. This is a fantastic clue for investors, conveying that purchasing affordable property in the region will grant the best chance of increasing their capital gain compared to other properties in the market, or other regions entirely.
When compared to London, which is a market that has consistently become more unaffordable for investors and buyers- property prices have only risen 9.2%, nearly half that of the overall house price increases found across England, which amount to 16.4%. The Northwest alone has tripled that of individual increases found in both city centres.
With these price increases, many are finding an increased competition when securing properties, as demand is up nearly 60% when compared to the last 5-year average recorded in 2022. Although this is ultimately a positive sign for investors, it means that those wanting to invest in property should take care to choose properties that reflect the current market demand: affordable, in locations suitable for city centre travel. An example of a location matching these demands is Manchester’s Salford, which sits at an affordable rate, mere minutes away from the centre via multiple transport routes.