construction

Manchester outbuilds London as housing pipeline grows

Manchester has built more new homes over the past year than all 32 Greater London boroughs combined, highlighting the scale of development taking place in one of the UK’s fastest-growing property markets.

According to Manchester City Council’s latest Housing Strategy update, 4,766 homes were completed over the past 12 months, compared to 4,261 in all of Greater London’s boroughs. The figures also show the city delivered its highest annual number of affordable homes since the late 1990s, despite the slowdown in residential construction seen in many other parts of the country.

And that momentum is unlikely to slow. More than 13,500 homes have been delivered since 2022, with more than 7,800 currently under construction and a further 20,000 having planning approval or progressing through the planning system.

It means Manchester is now on track to achieve its target of delivering at least 36,000 homes by 2032.

Burnham’s track record

With Andy Burnham now in No 10, his track record as Mayor of Greater Manchester is coming under increasing scrutiny, particularly his commitment to build more social housing. One of the most striking aspects of the figures is therefore the growth in affordable housing.

Manchester completed 901 affordable homes over the year, with 439 delivered for social rent. Affordable housing starts have increased by 12% since 2022/23, bucking the national trend, and the city centre recorded its largest-ever delivery of affordable homes at 259 completions.

There are also around 4,000 affordable homes in the pipeline, including approximately 1,450 already under construction and another 2,000 with planning permission.

Why it matters

Building activity on Manchester’s scale gives developers, lenders and investors greater confidence that regeneration will continue over the coming years. It also provides greater certainty for businesses considering relocating or expanding, knowing there is a robust supply of housing and strong local employment growth.

Councillor Gavin White, Manchester City Council’s executive member for housing and regeneration, said: “We have done housing differently. We aren’t solely reliant on private developers to deliver social and affordable housing. We are ramping up delivery by working closely with our housing partners, by accessing grant funding and using Council-owned brownfield land to deliver the homes we need. And the results speak for themselves.”

Making better use of existing homes

Along with new development, Manchester is also focusing on making better use of its existing housing stock.

Since establishing a dedicated Empty Homes Team in 2024, around 600 long-term vacant properties have been brought back into use. The council has also introduced incentives encouraging tenants in larger social homes to move into smaller properties where appropriate, releasing 195 family homes during the past two years.

Together, these initiatives have contributed to the city’s housing register falling by around 2,000 households over the past six months. Manchester has also reduced the number of households requiring temporary accommodation since 2022 and has almost eliminated the use of bed-and-breakfast accommodation for families.

The council reports, though, that the introduction of the Renters’ Rights Act is now beginning to have an impact on tenure patterns. Its data shows a number of landlords have chosen to exit the private rented sector since the legislation came into force on 1 May, with around two-thirds of those properties purchased by owner-occupiers. The council estimates this has resulted in around 1,450 additional homeowners over the past year.

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