Manchester’s rental market has gone from strength to strength as the city’s population has soared, and it’s now home to a record number of tenants.
In the UK, around a fifth of households rent their homes privately according to the latest figures from the Office for National Statistics. This comes to around 5.4 million households, and is a figure that has been on the rise over the decades, led by certain pockets of the country in particular.
There are multiple reasons for growth in the sector, ranging from the difficulty of getting onto the housing ladder and securing a mortgage for first-time buyers, to lifestyle changes and preferences, as well as a general improvement in the quality of rental homes making it a more attractive option.
While average tenants have been getting older, young professionals continue to make up the biggest proportion of renters – and this tenant type tends to opt for city or town centre living, close to jobs, amenities and socialising opportunities. As such, property investors often target one or two-bedroom apartments in key city locations.
In recent years, Manchester has risen through the ranks to become one of the most attractive locations for property investors, and this is largely driven by rising demand from tenants in the city.
Manchester top for tenants
New research from Property Investments UK has identified Manchester as the most renter-heavy city in the UK, revealing that 62% of households are living in privately rented accommodation there.
This amounts to a total of 133,126 rental homes in total, which is the highest number of rental properties out of any city studied apart from London, which is home to 1,822,840 (53% of total households).
According to the research, Manchester’s “bustling rental market” is home to a huge 88,997 university students, while students and professionals alike can also enjoy 2,788 transport stops thanks to vast improvements in the city’s public transport connections in recent years.
The graduate retention rate in the North West city is high, making it an ideal location for property investors who would rather avoid letting to students but want to avail of the large number of young people – with the research also revealing that 17% of the population is aged 18-24.
Manchester also has one of the highest tenant satisfaction rates in the country, with figures taken from the 2024 Tenant Satisfaction Measures report showing that 73% of tenants report being happy with their accommodation. By comparison, tenant satisfaction was much lower in Leicester, with just 51% of renters feeling positive.
Investors continue to target North West
Commenting on Manchester’s position as a top location for tenants, Property Investments UK said: “Manchester’s appeal as a rental hotspot lies in its dynamic mix of culture, connectivity, and opportunity. The city’s extensive transport network, thriving university scene, and vibrant social atmosphere make it incredibly attractive to renters, particularly young professionals and students.
“For investors, these qualities ensure a steady influx of tenants and sustained rental demand, making Manchester a compelling choice for building a property portfolio.”
Alongside the rise in tenant numbers, rental prices have also surged in recent years in Greater Manchester, with a 72% rise over the past 10 years according to research from Tlyfe.
At the same time, rental yields across the North West as a whole have been consistently higher, on average, than those generated in London and the South East. This has put the area more firmly on the map for property investors, particularly as rental income has been put in the spotlight due to rising mortgage costs since 2022.
Further to this, a recent report from Colliers named Manchester as the top property investment destination in England based on figures collected from the second half of last year, hailed in particular for its thriving economy, R&D credentials, exciting jobs market and booming population..
