MHHG estate agents

As 2025 comes to a close, the Manchester property market reveals remarkable trends, offering insights for buyers, sellers, and investors. With the sales pipeline reaching its highest value in four years and a strong recovery in sales volume, Manchester remains a focal point for property activity in the UK. Here, we delve into the key highlights of 2024 and projections for 2025.

+30% Sales Pipeline Growth
The value of homes in Manchester’s sales pipeline has grown by an impressive 30% compared to last year. This growth underscores heightened activity in the market, driven by increased supply and stable demand. By the end of 2024, the pipeline consists of 283,000 homes valued at £104 billion, marking a significant surge from 2023.

Buyers and Sellers Return to the Market
After a challenging period of high mortgage rates in 2023, buyers and sellers showed renewed confidence throughout 2024. Increased listings have provided buyers with more options, contributing to the year’s sustained growth in sales. Estate agents in Manchester reported an average of 6.1 sales per month—a milestone not seen since the pandemic boom in 2021.

Despite the rebound in activity, affordability constraints have kept house price inflation modest. Buyers, cautious about the economic outlook and mortgage rates in 2025, have displayed increased price sensitivity, especially in Q4.

Largest End-of-Year Sales Pipeline in Four Years
The Manchester market closes 2024 with a record-breaking sales pipeline by value since December 2020. Sales agreed in the last four weeks of the year are 23% higher than the same period in 2023, illustrating robust buyer activity ahead of the anticipated stamp duty changes in April 2025.

However, the window to finalize transactions before the 31st March deadline is narrowing. This has prompted a push among committed buyers and sellers to secure deals while favorable conditions persist.

House Price Trends
Annual house price inflation in Manchester recorded a modest rise of 1.9% in the 12 months to November 2024, a significant recovery from the -1.2% dip in 2023. With an average house price of £267,500, Manchester is performing well compared to southern regions of England, where price inflation remains subdued.

Price Sensitivity in Q4 2024
As the year progressed, buyers grew more cautious. The gap between asking prices and agreed sales prices averaged 3.6% in December, slightly higher than the 3.2% observed during the summer. This indicates that while buyers remain active, they are negotiating more aggressively amid economic uncertainty and budget concerns.

Historically, smaller gaps between asking and sales prices have driven faster price growth, but current trends suggest a more balanced market heading into 2025.

Outlook for 2025
Looking ahead, Manchester’s property market is expected to maintain moderate growth. Key projections include:
Price Inflation: UK house prices are forecasted to grow by 2.5% in 2025, with northern regions outpacing southern areas due to better affordability and demand.
Sales Volume: Approximately 1.15 million housing transactions are anticipated in 2025, up from 1.1 million in 2024.
Market Dynamics: Continued buyer price sensitivity and a greater choice of homes will keep price inflation in check, supporting more sustainable growth.

Key Takeaways for Manchester
Optimism for Buyers: An increase in available properties provides buyers with more options, making 2025 an opportune time to enter the market.
Strategic Selling: Sellers should price properties competitively to attract offers in a cautious yet active market.
Investment Opportunities: Northern regions, particularly Manchester, continue to offer strong potential for property appreciation.

Conclusion
The Manchester property market in 2024 demonstrated resilience and growth, setting a positive tone for 2025. With the largest sales pipeline in recent years and balanced price dynamics, the city remains an attractive hub for homebuyers and investors alike. As affordability constraints ease and demand grows, Manchester’s property sector is poised for steady progress in the coming year.