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Rent prices in Manchester – it’s looking good for landlords, but where do you start? Read our guide to average monthly rent in Manchester, for everything from market trends to city centre and student rent.
Property professionals are seeing major leaps and bounds in Manchester right now, from the city centre to more affordable surrounding neighbourhoods. A thriving university city with a high rate of students staying on as graduates (51 per cent according to the 2019 Great British Brain Drain report) and much-loved by young families, there’s certainly a lot going for Manchester as an investment spot.
Heading into January 2020, these are the estimates:
Outside city centre
One bedroom flat
Three bedroom flat
This is according to global user contribution database Numbeo, based on monthly rent from 1,645 entries in the past 18 months, from 261 different contributors.
So the horizon looks bright, but how are the actual figures looking, as we break into 2020?
According to Rightmove, Manchester was the UK’s second most-searched for rental location outside of London in 2019. Bristol topped the list, with Manchester second and Liverpool third.
Top lettings agency Manchester Apartments also reported its highest ever number of lets in 2019, with 99.5 per cent of 800 studio and one to three-bed apartments being snapped up by students and professionals. This is in comparison to 75 per cent for the previous year.
And along with just over half of students staying on in Manchester after graduating, the Great British Brain Drain report also found that 57 per cent who left for other universities chose to move back after graduating. The Manchester student pie is worth slicing, if you’re looking to rent out in the north-west.
Manchester refuses to stand still, with a huge number of new sites being finished last year, and more in the pipeline. The city centre is developing, with the skyline expanding beyond even recent memory. This has been helped along by high rates of council-approved infrastructure and building projects.
Along with the clear attractions for students and graduates (five universities in the city region, 24 within an hour of commuting, affordable living, good travel options and world-famous, iconic culture), Manchester ticks so many boxes, and suits a long list of budgets.
Following the Christmas slump, general election uncertainty, and the tail end of Brexit, the market is reshaping with pick-up likely as we head into spring. Use the time now to get ahead of this iconic, fast-changing city.
It’s worth noting the recent report from the National Landlords Association (NLA) on Hometrack data. This showed Manchester, Edinburgh, Leicester and Birmingham bucking the national trend with cumulative house price growth of more than 15 per cent since 2017.
Topping things off, analysis from Aldermore Bank has placed Manchester at number three on its best places for landlord investment list (December 2019). The high profile retail bank used five key indicators for its report – average total rent, best short-term returns through yield, long-term return through house price growth over ten years, the lowest number of vacancies as a proportion of total housing stock, and percentage of the city population in the rental market.
Manchester came in second out of 25 listed cities, just behind Oxford and ahead of Edinburgh. London placed fourth, thanks to higher property prices impacting on annual rental yields, and Liverpool was significantly further back, in 17th place.
It’s not just Manchester that’s feeling the glow. More broadly, north-west England is a promising search zone for would-be investors, seeing an impressive 8.3 per cent increase in average rental values in December 2019, compared to December 2018. These figures from Homelet pin rents at around £756 a month. Lower than the national average, but bear in mind the higher rate of increase and lower than average property prices, with better yield potential.
Almost everyone wants value for money from their rent, but lots of prospective tenants will specifically be on the hunt for cheap rental deals.
Groups of students or friends looking to rent together will be keen to rent bigger properties and split the costs, so areas with roomier houses and lower asking prices are worth looking into.
Removal professionals Compare My Move highlight Wigan as the best value area to rent in Manchester, with average monthly rents at around £514 a month. The monthly rent for a one-bedroom flat is around £435, and for a 3-bedroom house it’s £568. Your tenants will be able to reach central Manchester by direct train in under 45 minutes.
Tameside is also highlighted for its affordability, with a one-bedroom flat costing £467 a month. It’s also a 30 minute drive from the city centre and popular with young families, thanks to great school options.
Check back to the start of this article for Manchester average rent figures from Numbeo, the table lists city centre specifics, starting with one-bedroom flats at £758.60 a month.
If you’re keen to stay central but don’t like the higher prices, New Islington and Castlefield are areas worth eyeing up. New Islington is a 15 minute walk from Manchester Piccadilly, and Castlefield is a 10 minute train commute.
Manchester Student Homes has released data for the 2018-19 period, with average rents for up to 12-bedroom properties across five popular areas. Here’s what they’ve estimated for up to three-bedroom properties, bills excluded:
Note, these rent levels are per person.
If you’re looking to rent to students, it may be worth becoming accredited with Manchester Student Homes, or similar. Not only does it raise confidence, you’ll also benefit from being in their directory.
What are your thoughts on rental prices in Manchester? Let us know by leaving a comment below.
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