MHHG estate agents

The Manchester property market continues to show strong momentum. In May 2025, both rental prices and house values have seen notable year-on-year increases. This report explores the current trends shaping the rental landscape in Manchester, based on the latest figures available.

Rental Prices Surge Across Manchester

As of April 2025, the average monthly rent in Manchester reached £1,309, marking an 8.5% increase compared to £1,207 a year earlier. This growth puts Manchester in line with the North West regional average, which also saw an 8.5% increase in rents.

On a national scale, the UK average rent hit £1,335, reflecting a 7.4% increase from April 2024. While Manchester rents remain slightly below the UK average, their rate of growth has been faster than many areas across the country.

Regional Rental Comparison – April 2025

Region Avg Rent Annual Growth

Manchester £1,309 +8.5%

North West £899 +8.5%

United Kingdom £1,335 +7.4%

The continued increase in rents highlights strong tenant demand, driven by a combination of limited rental supply and growing competition across urban centres like Manchester.

What’s Fueling These Trends?

Several factors are contributing to the upward trend in both rents and house prices:

Limited Supply of Rental Properties: New landlord instructions have remained subdued, contributing to tight rental supply.

High Demand from Tenants: A strong influx of renters, especially young professionals and students, is keeping demand levels high.

Wider Economic Stability: Inflation has eased in recent months, and although interest rates remain elevated, confidence is returning to both buyers and renters.

Market Implications for Landlords and Tenants

For Landlords:

• Strong rental growth offers opportunities to increase yields.

• Continued demand means less void time between tenancies.

• Rising property values may enhance long-term capital gains.

For Tenants:

• Increasing rents could tighten affordability, especially for new renters.

• Competition remains high—early applications and strong references are essential.

Outlook for Summer 2025

As we move into the summer, Manchester's rental market is expected to remain competitive. The alignment of rising rents and property prices suggests sustained market pressure, particularly in popular neighbourhoods like Ancoats, Didsbury, and Salford Quays.

However, should new government housing policies or interest rate shifts emerge, we could see some moderation in the pace of growth later in the year.

Manchester continues to demonstrate resilience and appeal in the UK property landscape. With rents rising to £1,309 and house prices reaching £247,000, May 2025 underscores the city’s dynamic market conditions. Whether you're a landlord, investor, or tenant, understanding these trends is crucial for making informed decisions in the months ahead.