Manchester Rental Market Update
As one of the fastest-growing cities in the UK, Manchester continues to see a dynamic shift in its rental landscape. At Northern Group, we’ve analysed the latest data to bring you the most important insights for landlords, investors, and residents looking to stay ahead of the curve.
Rental Demand Remains Strong
Rental demand across Manchester remains high, particularly in central neighbourhoods such as Ancoats, Northern Quarter, Picadilly Basin, Deansgate and Castlefield just to name a few. According to recent Rightmove figures, tenant enquiries per property are up 11% year-on-year, with one and two-bedroom apartments seeing the highest demand.
At Northern Group, we’ve seen this trend reflected in our own portfolio, with properties often letting within a week of being listed and many after the first viewing! This is due to high demand of rentals in Manchester as well as our marketing efforts for our Landlords properties, which includes high quality videography and photography for advertising using Giraffe360 cameras to create virtual tours and drone videography of our properties and their locations.
Another recent trend we have found, is seeing strong interest from professionals relocating from London, we can see this from our website Google Analytics, which shows 24% of our overall traffic is coming from searches in London. They’re drawn by Manchester’s lifestyle, transport links, and affordability in comparison to the Capital. Find out more about the interest in relocating from London to Manchester here.
Average Rents Continue to Rise
Manchester’s rental prices have climbed steadily in the past 12 months. The average monthly rent for a city-centre apartment now sits at £1,323, up from £1,204 this time last year (2024) – a 9.9% increase. The whole of Greater Manchester has seen a steady price increase year upon year and the average price for Greater Manchester as a whole, for example, Trafford prices have gone up by 2.9 percent in the last year, taking the average rent cost up to £1,211 per month. Tenants in Stockport can expect to pay an average of £1,068 per month to rent a home, which has increased by 6.6 percent in the last year.
Rental Data by Property Type:
One-bedroom properties: £942 per month (average)
Two-bedroom properties: £1,163 per month (average)
Three-bedroom properties: £1,346 per month (average)
Four-bedroom properties£1,926 per month (average)
Information from: Urban Splash, JLL, Select Property Group
Why Are Rent Prices Rising in Manchester?
- High Demand for Rental Properties
The influx of young professionals, students, and international workers seeking rental properties in Manchester’s city centre has created a highly competitive market. Proximity to key business districts, transport links, and universities continues to drive demand in the most desirable areas of the city. - Limited Rental Housing Supply
Despite ongoing developments, the supply of rental properties in Manchester has not kept pace with growing demand. This shortage is causing rents to rise, especially in high-demand areas such as Ancoats, Deansgate, Spinningfields, and Northern Quarter. - Economic Pressures
Inflation, rising interest rates, and the cost-of-living crisis are pushing up the operational costs for landlords, which are then passed on to tenants in the form of higher rents. Maintenance, utility costs, and insurance expenses for landlords are also factors driving price increases. In particular, the Stamp Duty changes from April 2025, have also resulted in higher costs for Landlords, resulting in rent increases for residents. Find out more about the effect of Stamp Duty costs here. - Shift Towards Renting Over Homeownership
With mortgage rates remaining high, many people are choosing to rent instead of buying, further increasing competition in the rental market. This is particularly true for first-time renters and families choosing to live in more affordable areas of Manchester. - Rent Comparison in Manchester Prices by Property Type
Manchester remains relatively affordable compared to cities down south such as London, Brighton and Bristol, though it is becoming one of the more expensive rental markets outside the capital, especially within the north.
Shortages of High-Quality Modern Homes
While demand continues to soar, Manchester is still facing a shortage of high-quality rental homes, particularly furnished, pet-friendly, and energy-efficient properties. Landlords who invest in modernising or upgrading their homes – especially with eco-conscious features like LED lighting, better insulation, or EV charging – are seeing quicker lets and higher returns.
Listing with a property management company like Northern Group not only reduces vacancy periods but can also increase ROI through better tenant screening, professional marketing, and strategic pricing. Find out more about how using a professional property management company can help landlords here.
Shifting Tenant Priorities
Tenants in Manchester are increasingly seeking more than just a home – they want lifestyle. At Northern Group, we’ve seen strong interest in apartments that offer:
- On-site coworking spaces
- Private terraces or balconies
- High-speed Wi-Fi and smart home features
- Proximity to independent cafés, gyms, and green space
- Gyms, Pools, Cinema Rooms, etc.
Neighbourhoods like Ancoats and New Islington have become hotspots not only for the modern homes, but also for the cultural appeal. Access to independent businesses such as artisan bakeries like Companio, and venues like Mackie Mayor, Firehouse and quirky shops makes these areas highly desirable.
Looking Ahead to Summer 2025
All signs point to another busy summer in the rental market. With several major employers continuing to expand their presence in Manchester, more students choosing to stay post-graduation, the surge in interest from London residents, and the general appeal of Manchester, we expect upward pressure on rents to continue. New developments coming to market will help ease pressure slightly, but the demand for well-managed, high-quality rental stock remains strong.
Our Advice to Landlords
If you're considering letting your property or switching management, it is a great time to do so. Working with an experienced and professional agent like Northern Group gives you the best chance of maximising your investment. We reduce void periods, attract high-quality tenants, and use expert pricing strategies to ensure your property achieves its full potential. Our dedicated team also ensures your property is fully compliant with the latest legislation, giving you complete peace of mind. We offer a free rental valuation and can help you prepare your property for market; from expert advice and support, to professional marketing.
Speak to one of our friendly team for more information:
0161 974 3232
& stay informed with updates of the Manchester rental market and follow @northerngroup on social media platforms including LinkedIn, Instagram and TikTok!