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As we enter 2025, the Manchester rental market continues to show strong growth, driven by high demand, limited housing supply, and broader economic conditions. Renters in Manchester are facing higher prices across the board, with notable increases in both one-bedroom apartments and larger family homes. This report provides key insights into current rental prices in Manchester, what’s driving the rental market, and what renters and landlords can expect moving forward.

Manchester Rental Price Trends: December 2024 vs November 2024

In December 2024, the average rent in Manchester reached £1,291 per month, showing a slight increase from £1,279 in November 2024. This upward trend reflects the ongoing demand for rental properties, particularly in central areas of Manchester.

Why Are Rent Prices Rising in Manchester?

Several factors are contributing to the rising rent prices 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 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.

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 opting to live in more affordable areas of Manchester.

Rent Comparison in Manchester Prices by Property Type

Manchester remains relatively affordable compared to cities like London, though it is becoming one of the more expensive rental markets outside the capital.

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)

Popular Areas in Manchester

Areas like Deansgate, Northern Quarter, Spinningfields, and Ancoats have seen higher rent increases due to the continued demand for city-center living. On the other hand, more affordable rental options can still be found in suburbs like Salford, Chorlton, and Fallowfield, although prices in these areas are also rising.

Manchester Rental Market Outlook for 2025

Looking ahead, rental growth in Manchester is expected to remain steady through 2025, although the pace may slow slightly in the second half of the year. The key drivers of high demand and low supply are likely to persist, keeping pressure on rental prices.

What to Expect in the Manchester Rental Market in 2025:

Continued High Demand
With Manchester’s economy growing and its population increasing, demand for rental properties, particularly in central areas, is likely to stay strong.

Higher Rents for Larger Properties
Larger homes, especially four-bedroom rental properties, will continue to see significant rent increases as families and groups seek more space.

Government Interventions
There is potential for government policies aimed at increasing housing supply, which could gradually ease price increases, although these changes may take time to impact the market.

Conclusion

What Renters and Landlords Should Know
As of January 2025, the Manchester rental market remains a competitive environment for renters, with average rents rising across all property types. Renters can expect to pay more for a two-bedroom apartment, which now averages £1,163, or a three-bedroom home, which rents for £1,346 on average.

For landlords, the outlook remains positive, with strong demand for properties likely to continue throughout 2025. However, it’s important to keep in mind that inflation and rising operational costs may impact profitability. Landlords should also stay informed about potential changes in government policies aimed at improving housing affordability and rental regulations.