MHHG estate agents

The Manchester housing market has experienced its strongest May in four years, reflecting national trends of improved buyer activity, modest price growth, and increased housing stock. As of June 2025, sales volumes are rising steadily, driven by improved affordability and renewed market confidence. Here’s a comprehensive breakdown of what’s happening in Manchester—and what it means for buyers, sellers, and estate agents.

Key Highlights

• Sales agreed reached a four-year high in May 2025, with a 6% year-on-year increase in agreed sales.
• 13% more homes on the market than this time last year, giving buyers more options and encouraging competition.
• House price inflation remains steady at 1.6% nationally, with Manchester and other North West cities seeing stronger growth due to affordability.
• Buyers are now able to borrow up to 20% more thanks to relaxed affordability testing, without any change in mortgage rates.
• Sellers in Northern England, including Manchester, are benefitting from the highest growth in sale volumes across the UK.

A Rebound for Buyers and Sellers in Manchester

After a slow patch triggered by the end of stamp duty relief, the Manchester housing market is bouncing back. The number of homes coming onto the market is up 13% year-on-year, while sales are up by 6%.

A prime example of this renewed demand? We recently sold a property on Peterborough Street within just two months—a testament to the strong appetite for well-priced homes in sought-after Manchester locations.

Manchester is one of the leading cities driving this rebound, thanks to strong employment, better affordability compared to the South, and a surge in motivated movers.

This increase in market activity is good news for both buyers and sellers. Buyers now have more choices and better affordability terms, while sellers are seeing more competition and stronger offers—though the average sale is still being agreed at around 3% below asking price, or approximately £16,000 less.

Local Trends Driving Manchester Growth

Northern cities are leading the UK in sales growth. The North West region saw a 14% rise in agreed sales, the highest in the country. Manchester in particular is seeing a ripple effect from rising home values and rents in the city centre, pushing demand outward into accessible, more affordable areas.

The local housing stock is more constrained than in the South, which is helping support price growth. In fact, house prices in the North West are up 3% year-on-year, compared to less than 1% in most southern regions.

What’s Fueling the Surge?

Relaxed mortgage affordability testing

Buyers using mortgages can now borrow up to 20% more than just a few months ago, significantly improving purchasing power.

More mortgage products below 4% interest rates

Competitive mortgage products have helped restore buyer confidence without relying on large rate cuts.

Increased stock = more choice

With an average of 35 homes available per estate agent office, the market offers more choice, helping buyers and sellers move faster and form stronger chains.

Strategy for Sellers in Manchester

In today’s market, pricing strategy is key. Homes that are accurately priced based on local comparables and recent sales are attracting attention quickly. Sellers should consider that, on average, homes are achieving 97% of their asking price—a realistic benchmark for setting expectations.

Manchester sellers are in a stronger position compared to those in the South, where higher stock levels and slower sales growth have led to tougher competition and more downward pressure on asking prices.

Is Now a Good Time to Sell in Manchester?

The data says yes—especially in Manchester. With rising buyer interest, improved borrowing power, and competitive mortgage products, conditions are favorable.

For anyone considering listing their home, a well-crafted pricing and marketing strategy tailored to Manchester’s micro-markets can ensure a smooth and successful sale.

Manchester’s market is thriving, offering more choice for buyers and strong opportunities for sellers. Whether you're buying or selling, now is an excellent time to act.

At MHHG Estate Agents, we know the Manchester market inside out. If you're considering a move, get in touch—we’ll help you make the most of this dynamic market.