MHHG estate agents

Manchester's property market has carried its strong momentum from 2024 into 2025, despite concerns over mortgage rates and economic uncertainty. Sales agreed have risen by 12% compared to last year, driven by buyers looking to secure deals before the reduced stamp duty deadline at the end of March.

Increased Housing Supply and Buyer Demand

The number of properties for sale in Manchester is 10% higher than a year ago, with the average estate agency branch listing 31 properties—the highest January total in seven years. More homes on the market have also led to increased buyer activity, with demand 13% higher than in early 2024 and 26% higher than in 2023.

House Price Growth in Manchester

Annual house price inflation in Manchester stands at 3.6%, outpacing the national average of 2%. The North West as a whole saw a 3.2% rise, highlighting the region’s growing appeal. Strong employment growth and relatively affordable property prices continue to drive Manchester’s market, making it a key area of investment.

Stamp Duty Changes and Buyer Trends

The October 2024 Budget announced that stamp duty rates in England and Northern Ireland will increase from April 2025, impacting both first-time buyers (FTBs) and existing homeowners.
As a result:
FTB demand surged by over 33% in November and December 2024, particularly in the £300,000 to £625,000 price range, where the tax increase will be most significant.
Demand for homes priced below £300,000 and above £625,000 grew at a slower rate.
While it is now too late to complete purchases before the March 2025 deadline, FTB interest remains strong, suggesting continued market activity.

Regional Market Trends

Manchester's property market is benefiting from a broader trend of strong price growth in the North West:
Wigan recorded the fastest house price growth in 2024 at 5.6%, followed by Manchester and surrounding areas at 3.6%.

Market Outlook for Manchester in 2025

Despite rising house prices, there are signs that growth may moderate in 2025 as mortgage rates gradually increase and more properties become available. However, Manchester’s strong employment prospects and affordability relative to London are expected to sustain demand.

Increased Homebuyer Interest

Zoopla’s Monthly Consumer Tracker shows a growing number of renters and homeowners looking to buy in 2025:
Over 20% of renters want to purchase a home, largely due to rising rental costs.
Nearly 20% of homeowners plan to move in the next two years.
25% of homeowners are not actively planning to move but are monitoring the market for opportunities.

With mortgage rates stabilizing in the 4-5% range and wages outpacing house prices since 2022, housing affordability is gradually improving. As a result, Manchester remains one of the most attractive markets for buyers and investors in 2025.