Manchester rents are 20% more expensive than last year
Research from JLL shows that Manchester rents have surged this past year, surpassing the national average rental growth of 14%.
JLL’s Big Six Residential Development Report looks at how prices and rents have changed in Birmingham, Bristol, Edinburgh, Glasgow, Leeds, and Manchester.
Manchester, with its 19.6% annual rental growth has the highest rent increases among the Big Six. It is followed in this closely by Edinburgh, which has seen rents grow by 18%, and Birmingham, which reports a 17.9% increase.
Your average Manchester one-bedroom home is £1,225 a month, according to JLL. A two-bedroom home is £1,600 a month and a three-bedroom one is £2,200 a month.
Meanwhile, home prices in Manchester have an annual growth of 4.9%. The average price for a one-bedroom home is £223,500. A two-bedroom residence is £309,000 and a three-bedroom one is £374,000.
The increase in prices is credited towards a growing population and shrinking supply. Manchester has increased its population by 9.7% over the past decade, according to JLL. People are lured to the city due to increasing employment opportunities – those figures JLL reports as increasing by 28%.
“Manchester continues to attract a significant amount of inward investment, students and young professionals, looking to make the city their home,” said JLL’s Steve Hogg, the head of UK residential regions and North West.
“It’s unsurprising given the employment and education opportunities that have been created here over the last decade,” Hogg continued.
“That said, although the city continues to build homes at a quick pace, demand is still outstripping supply, so there is work to be done to unlock land that is ripe for development and create houses for the people that need them, and quickly.”
- How does Manchester compare to Leeds? Find out.
Louise Emmott, managing director at residential agency Kingsdene, noted that the rental growth rate of three-bedroom homes was increasing faster than one- and two-bedroom homes – 33% compared to 25% and 14%, respectively.
“This is the largest increase across any of the markets reported and showcases the growing demand for families looking to stay in the city centre for longer,” Emmott said.
It is not all good news, though, Emmott said.
“At the same time, the end of the Help-to-Buy scheme and increasing mortgage rates are pushing up rental renewals as renters look to stay put while they save more money or wait for rates to come down,” she continued.
“All of this combined is causing stagnation in the market which needs to be addressed if we are to keep up with the pace of migration.”
The lack of supply is not just a Manchester issue. JLL director of UK residential research Marcus Dixon saw it reflected in all of the Big Six cities.
“What has become clear through our analysis is that neither the sales nor rental market is currently able to keep up with demand,” Dixon said.
“With fewer landlords entering the market, and the rate of new builds slowing, government intervention is needed to restimulate the market and ensure that there are enough homes for the people that need them,” he continued. “By creating opportunities for people to live and work in our regional cities, it will stimulate further inward investment and contribute to the success of our cities long term.”
Learn more about the residential market in the North West. Book your Place RESI ticket.
We desperately need tens of thousands more homes across Manchester – and not just in the city centre. The councils need to be bolder, sideline the NIMBYs, and get things built.
By Anonymous
Extortionate rent increases lead to mass shop and restaurant closures in Manchester as people have very little disposable income after rent.In the long run this will cause a flight from Manchester by people as they seek a better life .
By Joan Smith
This is the cleanest market signal that should encourage the builders to get building and planners and regulators to move aside – clearly supply is falling short of demand
By Stuart wood
Manchester must start to develop its doughnut ring, in a more attractive way. Just building houses, is not enough, these areas need more than huge supermarkets with litter strewn car parks, if they are to attract people currently clamouring for the city centre.
By Elephant
Quite disgusting. It shows the greed in the market.
By Anonymous
Same in Leeds, Liverpool and London
By Anonymous
These are not rich people, these are 20 somethings paying all their earnings and getting into debt to live here.
By Cal
£1,600 for a 2 bed? Wow. Imagine this is probably skewed by a lot of the new build towers but still
By Levelling Up Manager
Could Stuart wood explain where ‘planners and regulators’ have stopped housing being built in Manchester. And does elephant mean Aldi in chorlton where residents were desperate for a quality low cost supermarket??
By Rubbish
Testament to Manchester’s economic growth. Jobs and amenities are making the city a better place to start a professional life. However, connectivity to the hinterland is a major part of this. As rail connectivity is so poor and so expensive, people are choosing to live within walking distance of work, amenities and social life.
By Transport
I Live in Liverpool South and rents have doubled
By Anonymous
It is amazing to see the regional markets hit this level of growth. However, how can graduates afford to rent in the city centre? Salaries haven’t increased by the same percentage. The regional cities need to start increasing salaries in line with the cost of living in order to retain the talent pool. London costs vs Manchester salaries isn’t sustainable.
By Anonymous1
Chorlton isn’t in the doughnut ring, it is an established community with facilities. I am talking about places along or near to Alan Turing Way, where houses are being thrown up. The success of Ancoats, needs expanding along the Canal to the Ethiad. What happened for those ambitious plans for Holt Town?
By Elephant
Which supermarkets have been thrown up in the doughnut? Asda? That was ages ago
By Rubbish
Government regulation on EPC regulations, planning regulations on “green belt” lots new regulations on evictions and building standards- all of which are intended to help people but will have the intended consequences of pushing up prices and reducing supply
By Stuart wood
From personal experience and speaking to friends, the situation is bleak for graduates. I know plenty of people in their mid 20’s who are earning 35k+ yet just about break even every month even with reasonably modest accommodation
By Anonymous
Lack of supply? In Manchester? Are we talking about the same place? There are huge apartment buildings going up all over the place, have been for years. Lower rise one’s going up on every corner , entire developments and new districts being created on every brownfield, greenfield, car park and corner of someone’s garden. Lack of supply? Certainly not in Salford or the city centre…total myth. Oversupply of greed and chicanery more like it.
By Anonymous
I really find this difficult to believe. I suggest we move to Barnsley. I recently rented a two bedroom flat there for £550 pm. But then it’s Barnsley. Manchester in particular is experiencing the London effect. After years of development and job growth the so called gentrification of certain parts is kicking in. Foreign money from China and the Middle East has played a part as has ‘Northshoring ‘ and the migration of many jobs here…hence my return. Now that interest rates and inflation have headed upwards and eroded people’s earnings it bites very hard for many while the few will notice nothing but an increase in wealth as assets like property and stocks rise in value and they borrow cash against them and write the income off against tax. What a hoot. Meanwhile we are a rudderless ship over regulated where it’s not needed and under where it most certainly is. But what do I know?. I’m sat here writing this in my underwear wondering whether to start my own political party or an Onlyfans page. I live in Worsley now.., somebody has to pay the mortgage.
By Nimrod
We need more at New Cross levels of density pushing further out. Right now if you look at Victoria North plans, the density maybe falls away to quickly. The GM boroughs also need to pull their finger out on transit orientated development, can’t stand GM Rail up quick enough.
By Rich X
As someone who has had to deal with planning authorities I must say the planning regime and speed of dealing with applications is farcical. It all adds to the uncertainty and cost of an overall development. We need LA house builders with experience of delivering social housing in the millions like we used to in the 60’s and 70’s to provide for council tenants
By Anon
Manchester is going to experience what happened in U S where younger people are moving out in large numbers from.high rent and housing cost destination like California and New York and moving to cheaper cities and states.
By Terry Jones
California, New York and Manchester? …very different regimes and very different circumstances in the UK. People are still moving here from Barnsley.
By Anonymous
It seems that everybody wants Manchester to develop but nobody wants to pay the cost that comes along with it!
By Verticality