MHHG estate agents

As we reach the end of 2024, the Manchester rental market shows signs of slowing rent inflation, though prices are still rising in many areas. Let’s break down the key trends you need to know as we head into 2025.

Slower Rent Growth

Over the past year, UK rental inflation has dropped to 3.9%, down from 9.1% a year ago. This is the lowest growth rate in over three years. In Manchester, rent growth is following a similar pattern, slowing down compared to 2023 but still increasing, especially in more affordable neighborhoods.

Supply and Demand Imbalance

The supply of homes for rent in Manchester is improving. There are 12% more homes available this year than last, but this is still 18% lower than pre-pandemic levels. Demand for rentals remains strong, with fewer available homes pushing up rent prices, especially in the city’s suburbs.

Affordable Housing in High Demand

There is growing interest in more affordable rental properties, particularly on the outskirts of Manchester. Tenants are looking for better value for money, and rents are rising faster in affordable areas like Rochdale, where rental inflation is at 11.9%. Suburbs around Manchester are becoming more popular as renters seek lower prices compared to the city center.

2025 Outlook: Rents Likely to Continue Rising

Looking ahead to 2025, rental prices in Manchester are expected to increase by around 4%, mainly in areas with more affordable rents. Areas like Salford and Wythenshawe will likely see the most significant growth, driven by demand for cheaper rentals. However, the overall supply of rental homes is not expected to grow significantly, meaning that competition for properties will continue.

What’s Driving Demand in Manchester

Several factors are still driving rental demand in Manchester:
High property prices mean that many first-time buyers are choosing to rent instead.
Migration for work and study keeps the rental demand steady as more people move to Manchester.
Limited social housing is pushing more people to the private rental market.

Conclusion

In December 2024, Manchester’s rental market is characterized by rising rents, particularly in affordable suburbs. Although rent inflation has slowed, supply continues to struggle to keep up with demand. Whether you’re a tenant or landlord, being aware of these trends will help you make informed decisions in 2025.