Rental rates have risen by 7.1% in the north-west city over the last 12 months, as more investors turn to Manchester in search of the highest yields.
- Average rental rates have risen fastest in Manchester in the last year than any other city in the UK
- Nationwide average rents grew 2.2% in the 12 months to September, but in Manchester they rose by 7.1%
- With one of the most acute demand to supply imbalances in rental property in the country, more domestic and international property investors are turning to Manchester to acquire assets that can deliver a strong, regular income
Is Manchester the heartbeat of the UK’s rental revolution?
The north-west city was named last year by HSBC as the city with the highest yields in Britain. Now a new report from Countrywide outlines that rents in the UK are rising fastest in Manchester.
On a national level, the rate of growth in the 12 months to September 2016 was 2.2%. But in Manchester, they rose by 7.1%, more than any other city in the country. Furthermore, of the 20 largest cities in the UK, the five which recorded the largest rental rate rises were in the north of England and Scotland, including York, Glasgow and Liverpool.
But it’s a different story in London and the south of England. This region saw the highest proportion of landlords cutting monthly rates in the last year, with Cambridge (18%) and London (17%) the cities where rents were cut the most.
“A different type of two speed rental market is emerging, with falling stock and growing demand driving rental growth in many northern cities at a higher rate than those in the south,” commented Johnny Morris, Research Director at Countrywide.
More investors from the UK and around the world are turning to Manchester to find a property asset that can deliver a strong income.
85% of people living in the city centre now rent. But while city targets state that Manchester needs 4,000 new purpose-built rental units each year to keep up with demand, just 1,417 annual units are set for delivery over the next eight years.