The Northern Powerhouse city of Manchester has come out on top as an investment destination in England for the second time.
The latest ‘Top UK Residential Investment Cities‘ report for H2 2024 from Colliers has revealed the 20 best-performing cities across the UK by focusing on five key pillars: economic, research and development, liveability/cultural, property and environmental.
The analysis is designed to help investors to make “informed capital allocation decisions”, according to Colliers director of research and economics, Oliver Kolodseike, with the latest report being the eighth in the series.
At the top of the table UK-wide are Scottish powerhouse cities Edinburgh and Glasgow; a position they have now held for three consecutive reports, which are released twice a year.
Ranked third overall, but in first place for England, the North West city of Manchester retains its status for the second report in a row – which its highest placing since Colliers’ analysis began, demonstrating the improvements across the city that make it a promising hotspot for residential investors.
Hailed in particular for its thriving economy, R&D credentials, exciting jobs market and booming population, Manchester is proving particularly popular among investors seeking a more affordable location than London, with exciting future prospects.
Manchester is “world-class”
The report notes: “Manchester continues to be a world-class city region, offering a fantastic environment for living in and for businesses to grow and prosper.
“Home to an £80 billion economy, global transport connectivity, incredible talent from the largest student population outside of London and high-quality business properties, it is a first choice investment destination for leading international brands.”
Office take-up has experienced a steep rise over the past year, hitting its highest figure since pre-pandemic in 2024 with a total of 1.22m sq ft transacted, according to Colliers, which is higher than the city’s five-year average. One of last year’s most significant office transactions was BNY Mellon’s acquisition of 200,000 sq ft of space in the city centre.
This follows on from a number of large corporations and government bodies relocating to Manchester over the past five years. These include JP Morgan, Octopus Energy, and Rolls Royce.
These moves have boosted employment while also increasing demand for homes, which has further enhanced the city’s investability in the residential sector, and boosted property prices at the same time, with Manchester recording the second-highest house price growth of the 20 cities analysed for the report. It also has a high share of properties with an EPC rating of A-C.
The report adds: “Culture, art, music, sport and festivals are in abundance and this combined with easy accessibility to the surrounding beautiful countryside of the Peak District, Lake District and North Wales offer a compelling reason to live and work here.”
Strong economic outlook
In Colliers’ H1 2024 report, Manchester was ranked at the top of the 20 cities for its economy. In this report, it falls to third position, although it holds the second-best GDP forecasts of all cities analysed.
Manchester’s economy is forecast to grow at an annual rate of 2.2% over the next five years, says Colliers, while the unemployment rate is forecast to average 3.7% over the same period.
The city’s population is also forecast to see the highest growth of any of the 20 cities, with a projected increase of 1.07% per year over the next 10 years.
Another area where Manchester scored particularly strongly was in the R&D measurements, where the cities remains in fifth position due to its “positive net business creation”.
“Furthermore, Manchester benefits from the second largest student population and its university ranks 22nd in the 2025 University League Table,” adds the report.
UK housing market needs long-term observation
Andrew White, head of UK residential and international properties, Asia, said: “The housing market has been in a holding pattern in recent years, which is broadly reflected in our latest analysis with our top four cities remaining in the same position. However 2025 could be the year where that changes.
“We’re expecting a flurry of activity in the first quarter with the stamp-duty threshold reducing for first time buyers, also the cost of borrowing should start to come down as the Bank of England is expected to continue to reduce the base rate this year, and with unemployment remaining low, perhaps for some homeownership will become more viable.
“What will be interesting to note this year is whether the affordability gap between the locations we analysis will shrink, and whether the demographics of our regions and cities could be altering – although that is more likely to require a longer term observation, it is one for the Government to be mindful of.”
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