Manchester’s residential rental price growth has reached 50% over the past three years, far outpacing the rest of its ‘Big Six’ city counterparts, according to research from global property advisor JLL.
Its ‘Big Six’ research, which tracks residential development activity, prices and rents across Leeds, Birmingham, Manchester, Bristol, Edinburgh and Glasgow, noted how a new supply of rental homes in the market has driven growth across the mainstream and prime markets.
Prime two-bed rental properties have seen the highest growth over the past 12 months, rising 14.9% – in comparison prime one-bed rental properties saw a 9.7% increase while three-beds grew 12.9%.
In contrast, average sales growth in the market remained consistent, growing 1.8%. JLL outlined high mortgage rates and uncertainly over service charges had deterred prospective buyers.
Reflective of national trends, the research also showed that annual sales growth across the Big Six saw a 1.9% rise over the past year, though a shift to more affordable markets was reported.
Demand for rental properties across the six cities has also remained robust, driven by young professionals seeking the lifestyle benefits of city centre living.
Manchester’s rental market proved an outlier, with JLL’s research showing the national picture has become more balanced this year. Annual growth, which had soared to double-digit highs in H1 2023, moderated to an average of 6.6% across the ‘Big Six’ cities.
Jonathan Wiedemann, Head of North West & Building Consultancy North at JLL, said: “Manchester’s firmly cemented itself as a fantastic place to live, work and study. That’s borne out by our rental figures and the steady flows of capital, businesses and people heading into the city.
“The sales market might not have had a vintage start to the year, but investors shouldn’t feel disheartened. There’s a quiet optimism among Manchester property professionals that an anticipated spate of interest rate reductions, brightening economic picture and stable political landscape will fuel future growth.”
