Rents across the country have surged over recent years amid sky-rocketing tenant demand, but one Greater Manchester area in particular tops the table.
Owners of rental homes across every part of the UK have experienced soaring demand from tenants over recent years, with average rents increasing by a huge 44.4% in England over the past 10 years.
This rise in demand is due to a range of factors, including a shortage of rental homes available compared with the number of tenants, affordability constraints for prospective first-time buyers including rising mortgage rates, and lifestyle changes with growing numbers of young professionals opting for a more flexible lifestyle.
Rental rises are also being blamed on landlords’ costs increasing in recent years due to tax changes (such as the removal of mortgage interest tax relief), as well as higher mortgage rates, with additional outgoings being passed onto tenants.
At the same time, the quality of rental homes has also been on the rise, with more landlords than ever prioritising energy efficiency and additional amenities in their investments in order to make their properties more attractive to today’s tenants. This has led to rent rises, with the advent of the build-to-rent sector, which tends to command premium rents, also having an impact.
Greater Manchester area leads the way
A new study conducted by Tlyfe, which analysed rental market figures across England over the past 10 years using government data, revealed that the Greater Manchester city of Salford had seen the sharpest rent increases during the timeframe.
The area, which has been through vast amounts of regeneration and redevelopment over the past few decades, saw rents surge by a huge 72.4% since 2015. Still, tenants living in the Greater Manchester city continue to pay less than they would in Manchester city centre, with the average sitting at just £990 a month which is also less than the UK average.
Situated just outside Manchester itself, Salford has seen its population surge in recent years, putting pressure on demand for rental homes. It is a key destination for young professionals to move to, who want to make the most of the jobs on offer in and around the city, while living in a more affordable area.
As a result, property investors have honed in on this Greater Manchester city, capitalising on the variety of opportunities available there; and property prices have also more than doubled in Salford over the past decade, adding to the area’s investment potential.
Although a high level of regeneration has already taken place in Salford, investment continues to boost the city’s prospects, with numerous new developments under construction in and around the area.
Above average rental growth
A number of areas across Greater Manchester, including the city itself, have recorded higher than average rental price growth over the past 10 years, according to Tlyfe’s study.
After Salford, Manchester is the next strongest borough for rental rises, with the average price rising by a huge 64.9% between January 2015 and January 2025, from £783 to £1,291 per month.
Next on the list is Tameside, which was recently listed alongside Stockport among the top five locations in the country for its high levels of tenant demand in a study by Simply Business. In Tameside, rents have climbed by an average of 64.5% in the past 10 years, from £504 to £829.
Bury is another location with above-average rent rises, registering a healthy increase of 63.9% and bringing the average monthly rent from £549 to £900.
Finally, Trafford is another standout location according to the research, with a 10-year rent rise of 63.6%. Tenants in Trafford now pay an average of £1,301 per month, compared with £795 in 2015.
Top prospects for property investors
The ‘levelling up’ agenda employed by the previous government – including the Northern Powerhouse project – and continued by the current one has led to greater levels of public investment in Greater Manchester, but private investors and businesses have also added to this by setting their sights on the north of England.
Transport has also greatly improved thanks to Mayor Andy Burnham’s focus on it, leading to the rolling out of the Bee Network which is already successfully delivering travel improvements to the area, with more set to be unlocked over the coming years.
Young professionals are increasingly drawn to the Greater Manchester area due to the growth in the number of businesses and prospects in the area, along with the greater affordability on offer. Despite the drastic rent rises of recent years, it remains a cheaper place to live than London and the South East.
From a property investment perspective, house prices remain below the national average in the North West of England, while many of the region’s towns and cities also offer higher rental yields than other parts of the country thanks to the consistently high rental demand.
If you’re looking for a property investment opportunity in Greater Manchester, or one of the other top-performing locations in the UK, get in touch with BuyAssociation today and find out how we can help.