MHHG estate agents

As we move toward the end of 2025, the rental landscape across the UK continues to cool from the rapid growth seen over the last two years. Yet the story is far from uniform—Manchester and the wider North West remain among the strongest-performing regions, supported by solid demand and limited supply.

Here is a clear, Manchester-focused breakdown of the latest trends for October 2025.

UK Rental Growth Slows, but Prices Remain High

Across the UK, average private rents rose 5.0% year-on-year, reaching £1,360 per month.
Although still rising, the growth rate has eased slightly from 5.5% in September, marking the slowest pace since late 2022.

Key figures at a glance:

UK average rent: £1,360 (+£65 over the year)
England: £1,416 (+5.0%)
Rental growth remains positive nationwide, but markets are clearly stabilising compared with the post-pandemic highs.

House Prices and Rents Are Moving Differently

While rents remain elevated, house price growth has softened.
Average UK house prices rose 2.6% in the year to September 2025—slower than the previous month.
This creates an interesting dynamic:

• Rents continue upward, driven by demand, supply shortages, and higher operating costs for landlords.
• House prices are moderating, reducing pressure on yields and making the rental market increasingly attractive for investors.

Manchester Rental Market: Demand Continues to Outstrip Supply

Manchester remains one of the most resilient rental markets in the UK.
Manchester sitting comfortably in the mid-to-upper rent band compared with neighbouring boroughs. This continues a long-term upward trend driven by:

• A large student and young professional population
• Consistent job growth in tech, digital, and professional services
• Ongoing regeneration attracting new residents
• Limited availability of high-quality rental properties

Manchester rents have not cooled as sharply as national averages. Instead, the city continues to benefit from strong structural demand.

Manchester Snapshot (Nov 2025)

• Typical rents remain in the£1,100–£1,300range, depending on location and property size
• Growth remains steady rather than explosive
• Well-maintained homes continue to let extremely quickly

How Rent Levels Change by Property Size

One of the clearest trends this year is the predictable increase in rent as property size increases. Across the UK, and especially in cities like Manchester, the pattern is consistent:

Average rent by property size:

• Rooms / Studios: ￡971, Lowest rents, highest turnover, strong demand from students and single tenants
• 1-bedroom homes: ￡1193， Moderate rents, typically the entry point for young professionals
• 2-bedroom homes: ￡1379， Not iceable jump in price due to wider appeal (couples, sharers, small families)
• 3-bedroom+ homes: ￡1958， Highest rents, limited supply, strong family demand, fastest year-on-year growth

In Manchester, the gap between a 1-bed and a 2-bed continues to widen.
Family-sized homes (3-bed and 4-bed) are seeing some of the strongest annual rent increases due to extremely restricted stock.

For landlords, this means:

• Larger homes are commanding stronger rent premiums
• Smaller units still enjoy high demand but face more price sensitivity
• Well-located 2–3 bed homes offer the best balance of yield and market depth