Manchester resi rents soar compared to regional rivals
Research by JLL found that the monthly price paid for new-build apartments in the city and neighbouring Salford has increased by 50% over the last three years, while Leeds remains the cheapest of the UK’s six largest regional markets.
In the first half of 2021, the average rent for one-, two-, and three-bedroom apartments in Manchester was £1,200.
This has risen to an average of £1,800 in the first six months of 2024 and equates to rise of between £100 and £200 every six months for the last 26 months.
Two-bed apartments are most in demand and have seen the highest growth over the last year, up almost 15%. Rents for one-bed and three-bed apartments are up by 9.7% and 12.9% over the last 12 months, according to JLL.
There are several schemes driving this growth. Two-bedroom apartments at Kampus start at £1,650 a month, while two-bed flats in South Tower at Deansgate Square are being offered up for as much as £2,800 a month.
Jonathan Wiedemann, head of North West and building consultancy North at JLL, said: “Manchester’s firmly cemented itself as a fantastic place to live, work and study. That’s borne out by our rental figures and the steady flows of capital, businesses and people heading into the city.
“There’s a quiet optimism among Manchester property professionals that an anticipated spate of interest rate reductions, brightening economic picture and stable political landscape will fuel future growth.”
While still a way behind the £2,500 average London rent, the rate of growth in Manchester outstripped the other five big regional cities: Birmingham, Leeds, Glasgow, Edinburgh, and Bristol.
In Leeds, rents have risen almost 30% in the same three-year period from just shy of £1,050 to £1,350. The Yorkshire city has the cheapest rents of all the Big Six regional centres, boosting demand, according to JLL.
Leeds currently has 4,300 operational BTR units but this could rise to 11,700 if all of its pipeline schemes are delivered.
Birmingham has largest build-to-rent pipeline out of any of the Big Six. Currently, the city has 6,400 operational units, way behind Manchester’s 13,400. However, if all of the schemes in Birmingham’s pipeline come forward, it would become the largest BTR market outside of London with 18,600 units.
Since 2020, Birmingham has seen £1.7bn of BTR investment, more than any other city, including Manchester.
This feels a tricky optic, probably makes a lot more schemes pencil-out, but could turn politically toxic.
By Rich X
The property industry applauds higher and higher rents in Manchester because it’s solely motivated by money but this is at expense of young people especially who increasingly are paying high proportion income to rent
By Barbara Smith
Yet my flat at City Gate rents for hundreds less than it did in 2011
By Anonymous
If rents are too high young people will go elsewhere, Manchester loses out and companies do not start/move to Manchester. This is not something to be “celebrated”.
By js1000
I’m sure the leading experts will be along here shortly to tell us there are no affordability issues in Manchester, and/or how unreasonable it is to expect developers to meet affordable housing requirements when they are only just scraping a profit.
The “stable political landscape” presumably includes MCC continuing to roll over whenever a developer doesn’t fancy playing ball.
By Rotringer
This seems to be all about new build rents for the latest new thing. I’d be interested to learn whether rents for second hand stock is following the same/similar upward trend…or are 2-3 year old blocks are seeing rental income tail off / voids increase. Anyone in this sector able to comment with accuracy?
By Anonymous
I’ve started noticing a lot of friends that are renting now looking to other cities. A few years ago Bristol seemed ridiculously expensive but now it’s similar. Personally I don’t think Manchester will retain young people if it continues to outpace arguably nicer areas
By Anonymous
We really need a recession. Almost everything is overpriced. Covid stimulus has distorted the business cycle.
By Anonymous
Not sure if this should be celebrated myself, however the majority of people I know have moved to GM’s suburbs rather than completely vacating the city completely, gentrifying the wider city region. Look at Stockport AKA New Berlin.
By Anonymous
Except that isn’t what’s happening here is it @js1000? Quite the opposite in fact
By James Kenny
This research was conducted by the company that increased my rent from £900 to £1100
By Anonymous
I have been living in Manchester for 12 years! I used to tell people how great and cheap the city was… Not anymore.
Now I’m researching other cities because has become stupidly expensive for what it offers.
By AlbertoRM
Hmm to be celebrated? Maybe. This has happened in London and the trickle down now is clearly hitting Manchester and Birmingham. It’s a balance, all about the high salary jobs attracted and retained . It works well until there’s a recession..or worse a depression but with governments around the world about to turn on the money printers again to keep our economies alive I shall be an interested participant to see how well that goes over the next few years.
By Doc Holiday