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Manchester October 2025 Rental Market Update: How Is the Renters’ Rights Act 2025 Reshaping Manchester’s Rental Market?

Manchester October 2025 Rental Market Update: How Is the Renters’ Rights Act 2025 Reshaping Manchester’s Rental Market?

The Manchester rental market continues to show resilience and strength through 2025 — even as new national legislation reshapes the private rented sector.
From steady rent growth to major legal reforms under the Renters’ Rights Act 2025, both landlords and tenants are entering a new era defined by balance, compliance, and long-term sustainability.

UK Rental Market Snapshot – September 2025

Across the UK, average private rents have risen by 5.5% year-on-year, reaching around £1,354 per month. England mirrors this trend with an average of £1,410 per month, marking another year of strong rental performance.

Regional highlights

  • North East: +9.1% annual growth (the strongest in the country)
  • London: +6.6%, driven by returning international demand
  • West Midlands: +5.6%, supported by regional relocation and affordability pressures
  • Yorkshire & Humber: +3.8%, showing the slowest growth rate in England

By property type

  • Detached homes: £1,544 per month
  • Semi-detached: £1,417 per month
  • Terraced houses: £1,308 per month
  • Flats/Maisonettes: £1,327 per month
  • 1-bed properties: £1,099, 4-bed+ properties: £2,021

These figures show that larger homes and quality properties are leading rent growth, while affordability pressures begin to steady smaller flat markets.

Manchester Rental Market: Local Insights

1. Steady Growth, Strong Demand

In Manchester, rents continue to rise steadily — broadly in line with national trends of 4–6% annual growth.
Demand remains robust across both the city centre and suburban areas, fuelled by a diverse tenant base: students, professionals, young families, and international renters.

2. City Centre vs Suburban Dynamics

City Centre: Neighbourhoods like Ancoats, Northern Quarter, and Salford Quays are seeing high demand from professionals and international tenants seeking lifestyle and convenience.
Suburbs: Areas such as Chorlton, Didsbury, Levenshulme, and Prestwich remain in high demand among families looking for space, gardens, and good schools.
Well-presented properties with modern finishes, EPC-compliant features, and professional management are being let faster and often achieve premium rent levels.

3. Quality Over Quantity

Tenants are becoming more selective — choosing energy-efficient, well-managed homes over cheaper but outdated properties.
Landlords who invest in presentation, maintenance, and communication see fewer voids, longer tenancies, and stronger yields.

The Renters’ Rights Act 2025 – What It Means for Manchester

The Renters’ Rights Act 2025, now in effect, marks the biggest reform of the private rental sector in a generation.
It aims to improve fairness, transparency, and stability — changing how landlords and tenants interact across England, including Greater Manchester.

Key Changes for Landlords

End of Section 21 “No-Fault” Evictions:

Landlords can no longer evict tenants without reason. All tenancies will move to a rolling periodic model, offering greater tenant security.

Ban on Rent Bidding:

Landlords and agents must advertise one clear rental price and cannot accept higher offers.

Advance Rent Limits:

New restrictions prevent landlords from demanding rent more than one month in advance.

Fair Access for All:

Landlords cannot refuse tenants simply for receiving benefits or having children.

Lifetime Deposits:

A new transferable deposit system will allow tenants to move between homes without paying multiple deposits.

Pets Rights:

Tenants gain the right to request pets, which landlords can only refuse on reasonable grounds.

Key Benefits for Tenants

Stronger Security & Flexibility:

All tenancies become open-ended periodic, reducing the risk of unexpected evictions.

Clearer Pricing & Fewer Hidden Costs:

No rent bidding or excessive up-front payments.

Fairer Treatment:

Discrimination based on benefits or family status is prohibited.

Improved Living Standards:

Stricter compliance rules ensure safer, better-quality homes across Manchester.

What This Means for Manchester Landlords

For landlords in Manchester, these reforms mean greater accountability — but also long-term stability if managed well.
Here’s how to stay ahead:

  • Update tenancy agreements to reflect rolling tenancies and remove outdated clauses.
  • Review rent-setting policies to ensure compliance with new transparency rules.
  • Focus on retention: keeping reliable tenants is now more profitable than chasing higher turnover.
  • Invest in property upgrades: modern, compliant homes will outperform in a regulated market.
  • Work with professional agents: the right management partner ensures your portfolio stays compliant and profitable.

Tips for Tenants

Understand your new rights: You can’t be evicted without valid grounds and have stronger rights to challenge unfair rent increases.
Act quickly on quality homes: Manchester’s most desirable rentals still move fast.
Secure stability: Consider longer tenancies to lock in current rates as demand continues to climb.
Communicate openly: Good relationships with landlords and agents ensure smoother tenancies and quicker maintenance responses.

At MHHG Estate Agents, we understand that Manchester’s rental market is evolving rapidly — and that both landlords and tenants need expert guidance to stay ahead.
Whether you’re:

  • A landlord looking to navigate new compliance rules and maximise yields, or
  • A tenant seeking a safe, well-managed home at a fair rent,

our experienced Manchester-based team is here to help.