Areas of Manchester: Buy-to-Let Property Investment Hotspots
Manchester is not only the commercial and economic hub of the North West, it is one of the fastest growing, most dynamic cities in the country. Both are things that bode very well for the future of property investment and the housing market across the city.
Located at the heart of Greater Manchester and bordering Salford to the west, Stockport to the east and Cheshire to the south. The city of Manchester has transformed from its industrial heritage into a vibrant metropolis that attracts investors, businesses, and young professionals alike.
Contents
- Best areas in Manchester
- When was the last house price crash in Manchester
- Average house prices (£)
- Highest houses prices (£)
- Lowest house prices (£)
- Highest house price growth (%)
- Lowest house price growth (%)
- Manchester buy-to-let rental market analysis
- Manchester HMO rental market analysis
- Landlord licensing
- Is Manchester rent high?
- Are Manchester house prices high?
- How much deposit do you need for the average buy-to-let?
- Manchester population trends
- Why invest in Manchester?
- How to invest in buy-to-let in Manchester
-
by Robert Jones, Founder of Property Investments UK
With nearly two decades in UK property, Rob has been investing in buy-to-let since 2005, and uses property data to develop tools for property market analysis.
Property Data Sources
Our location guide relies on diverse, authoritative datasets including:
- HM Land Registry UK House Price Index
- Ministry of Housing, Communities and Local Government
- Ordnance Survey Data Hub
- Propertydata.co.uk
We update our property data quarterly to ensure accuracy. Last update: December 2024. Next update: March 2025. All data is presented as provided by our sources without adjustments or amendments.
What are the Best Areas in Manchester for Property Investment?
Manchester, the largest city in the north of England and the third largest city in England (very close in population to Birmingham), offers a multitude of compelling reasons for investors, with affordable house prices and strong rental yields compared to many of the southern areas of England.
It has prime investment areas emerging around three key drivers: the student population, young professional hubs, and regeneration zones.
The most lucrative returns are found in established student districts like Fallowfield (M14) where HMO strategies can achieve yields up to 12%, and Ardwick (M13) delivering 6.5% yields through strong tenant demand and more affordable houses.
Meanwhile, areas like Didsbury (M20) and nearby Sale (M33) where average prices reach £415,000, attract young professionals with their vibrant amenities and transport links, commanding premium rents despite more modest yields around 3.6%.
For investors seeking value, emerging areas like Moston (M40) and Clayton (M11) present compelling opportunities, benefiting from Manchester's ongoing northern expansion and regeneration projects. These areas combine affordable entry prices (around £220,000) with strong rental yields of 7-7.3%, particularly attracting young renters priced out of central locations but still wanting good transport links and local amenities.
The city's continued economic growth, particularly in the tech and media sectors, underpins rental demand across all these locations, making them prime targets for both HMO and traditional buy-to-let investors.
Detailed Property Data for Manchester Buy-to-Let
When was the last house price crash in Manchester?
House price trends vary across Greater Manchester, with some areas experiencing faster growth than others. However, the overall trend for Manchester has been upward over the long term.
The last significant property price crash in Manchester occurred during the global financial crisis of 2008-2009. Since then, despite some fluctuations, the market has generally shown resilience and recovery with an upward trend to 2022.
2022 to 2024 there has been a flat lining in house prices for semi-detached and terrace houses, making it crucial to understand how to assess potential when investing for capital growth opportunities.
During this time there has also been a reduction in apartments house prices and a continued increase in prices of detached houses. So there isn't one 'trend' across the area.
Average house prices (£) in Manchester
The latest house price index by the land registry, Oct 2024 (it is always a couple of months behind reporting it's datasets), shows the following average house prices across Manchester and Greater Manchesters local authority areas.
Manchester
- All property types - £250,623
- Flats and maisonettes - £211,235
- Terrace houses - £240,027
- Semi-detached houses - £311,582
- Detached houses - £442,340
Greater Manchester
- All property types - £244,455
- Flats and maisonettes - £189,309
- Terrace houses - £198,929
- Semi-detached houses - £271,127
- Detached houses - £408,364
So you can see the city of Manchester has a higher average house price than the rest of Greater Manchester.
Highest house prices (£) in Manchester
| Rank | Area | Average House Price |
|---|---|---|
| 1 | M21 (Chorlton-cum-Hardy) | £430,778 |
| 2 | M33 (Sale) | £415,868 |
| 3 | M20 (Didsbury) | £381,290 |
| 4 | M41 (Urmston) | £371,980 |
| 5 | M2 (City Centre) | £360,860 |
| 6 | M25 (Prestwich) | £333,017 |
| 7 | M28 (Worsley) | £325,615 |
| 8 | M45 (Whitefield) | £324,051 |
| 9 | M32 (Stretford) | £301,755 |
| 10 | M19 (Levenshulme) | £301,066 |
Lowest house prices (£) in Manchester
| Rank | Area | Average House Price |
|---|---|---|
| 1 | M38 (Little Hulton) | £180,160 |
| 2 | M11 (Clayton) | £204,829 |
| 3 | M9 (Blackley) | £205,422 |
| 4 | M18 (Gorton) | £208,684 |
| 5 | M46 (Atherton) | £212,226 |
| 6 | M40 (Collyhurst) | £221,427 |
| 7 | M17 (Trafford Park) | £224,133 |
| 8 | M26 (Radcliffe) | £228,728 |
| 9 | M6 (Salford) | £229,663 |
| 10 | M5 (Salford) | £229,927 |
Highest house price growth (%) in Manchester
| Rank | Area | 5 Year Growth |
|---|---|---|
| 1 | M16 (Whalley Range) | 79.0% |
| 2 | M23 (Wythenshawe) | 53.8% |
| 3 | M38 (Little Hulton) | 50.6% |
| 4 | M43 (Droylsden) | 43.1% |
| 5 | M8 (Cheetham Hill) | 43.0% |
| 6 | M9 (Blackley) | 41.3% |
| 7 | M32 (Stretford) | 41.1% |
| 8 | M22 (Wythenshawe) | 40.3% |
| 9 | M31 (Partington) | 40.0% |
| 10 | M44 (Irlam) | 39.0% |
The highest growth areas in Manchester show impressive 5-year price increases, topped by Whalley Range at 79% and Wythenshawe at 53.8%. However, these figures should be viewed with some caution as they represent average prices across all property types - changes in the mix of properties being sold (such as more detached houses versus flats) can significantly impact these growth rates. Additionally, areas like Little Hulton showing 50.6% growth have relatively few monthly sales, which can skew the figures. Despite these limitations, the data clearly shows strong price growth across Manchester's previously undervalued areas.
Lowest house price growth (%) in Manchester
| Rank | Area | 5 Year Growth |
|---|---|---|
| 1 | M3 (Salford) | -3.3% |
| 2 | M50 (Salford Quays) | 2.7% |
| 3 | M4 (Manchester City Centre) | 3.4% |
| 4 | M5 (Salford) | 6.9% |
| 5 | M29 (Tyldesley) | 13.3% |
| 6 | M20 (Didsbury) | 15.7% |
| 7 | M1 (Manchester City Centre) | 17.3% |
| 8 | M15 (Hulme) | 20.0% |
| 9 | M18 (Gorton) | 22.6% |
| 10 | M26 (Radcliffe) | 23.1% |
The areas showing lowest price growth are predominantly in central locations and established suburbs, with Salford (M3) actually showing a decline of -3.3%. City-centre locations (M4, M1) and Salford Quays (M50) show surprisingly modest growth, likely due to high volumes of new apartment developments affecting average prices. Even traditionally strong areas like Didsbury (M20) show relatively modest 15.7% growth, suggesting these mature markets may be reaching price stability after previous growth periods.
Manchester Buy-to-Let Rental Market Analysis
For those buying their first rental property, understanding Manchester's rental demand is critical, so you can achieve the very best rental yield across the city.
The rental demand in Manchester is really strong, driven by the city's growing population, its status as an educational and business hub, and its appeal to various demographic groups.
The type of property in demand depends on the area. Apartments, especially in the city centre and near universities, are popular among students, young professionals, and people working in the city who want to be close to work, leisure, and transport links. Single-family homes are more sought after in suburban areas, attracting families and those seeking more space and a quieter environment.
Property Data Sources
Our location guide relies on diverse, authoritative datasets including:
- HM Land Registry UK House Price Index
- Ministry of Housing, Communities and Local Government
- Ordnance Survey Data Hub
- Propertydata.co.uk
We update our property data quarterly to ensure accuracy. Last update: December 2024. Next update: March 2025. All data is presented as provided by our sources without adjustments or amendments.
Highest average rental per week (£) in Manchester
| Rank | Area | Average Weekly Rent |
|---|---|---|
| 1 | M14 (Fallowfield) | £561 |
| 2 | M20 (Didsbury) | £415 |
| 3 | M13 (Ardwick) | £338 |
| 4 | M12 (Ardwick) | £317 |
| 5 | M6 (Salford) | £303 |
| 6 | M21 (Chorlton-cum-Hardy) | £302 |
| 7 | M1 (Manchester City Centre) | £298 |
| 8 | M40 (Moston) | £297 |
| 9 | M4 (Manchester City Centre) | £296 |
| 10 | M3 (Salford) | £291 |
The highest rental prices in Manchester are dominated by student areas and young professional hotspots, with Fallowfield (M14) leading at £561 per week, followed by Didsbury (M20) at £415. With larger properties and Houses of multiple occupation, the number of occupants paying rent could be 5,6,7 or more tenants. The presence of multiple universities influences these figures, particularly in areas like Fallowfield and Ardwick (M13, M12), while popular young professional areas like Didsbury and Chorlton command premium rents due to their amenities and transport links. City-centre locations (M1, M4, M3) feature prominently in the top 10, reflecting strong demand for central living.
Lowest average rental per week (£) in Manchester
| Rank | Area | Average Weekly Rent |
|---|---|---|
| 1 | M34 (Denton) | £213 |
| 2 | M26 (Radcliffe) | £234 |
| 3 | M9 (Blackley) | £236 |
| 4 | M24 (Middleton) | £239 |
| 5 | M27 (Swinton) | £240 |
| 6 | M8 (Cheetham Hill) | £248 |
| 7 | M30 (Eccles) | £252 |
| 8 | M43 (Droylsden) | £255 |
| 9 | M35 (Failsworth) | £257 |
| 10 | M16 (Whalley Range) | £259 |
The areas showing lowest average weekly rents are typically in more residential, family-focused locations where single-occupancy properties dominate the rental market. Denton (M34) shows the lowest average at £213 per week, with areas like Radcliffe (M26) and Blackley (M9) following at £234 and £236 respectively. These figures represent more traditional single-family rentals rather than the multi-occupancy properties common in student areas, offering a clearer picture of standard residential rental costs in Manchester's suburban locations.
Highest rental gross yield (%) in Manchester
| Rank | Area | Rental Yield |
|---|---|---|
| 1 | M14 (Fallowfield) | 12.0% |
| 2 | M11 (Clayton) | 7.3% |
| 3 | M12 (Ardwick) | 7.0% |
| 4 | M40 (Collyhurst) | 7.0% |
| 5 | M6 (Salford) | 6.9% |
| 6 | M18 (Gorton) | 6.7% |
| 7 | M13 (Ardwick) | 6.5% |
| 8 | M5 (Salford) | 6.3% |
| 9 | M50 (Salford Quays) | 6.2% |
| 10 | M9 (Blackley) | 6.0% |
The highest rental yields in Manchester are found in areas with strong rental demand but relatively lower property prices. Fallowfield (M14) leads with an impressive 12% yield, driven by its large student population and HMO potential. Areas like Clayton (M11) and Ardwick (M12) show strong yields above 7%, benefiting from their proximity to universities and lower entry prices. These yields often reflect multi-occupancy properties rather than single-let investments, particularly in student-focused areas.
Lowest rental gross yield (%) in Manchester
| Rank | Area | Rental Yield |
|---|---|---|
| 1 | M21 (Chorlton-cum-Hardy) | 3.6% |
| 2 | M33 (Sale) | 3.6% |
| 3 | M41 (Urmston) | 3.9% |
| 4 | M28 (Worsley) | 4.2% |
| 5 | M45 (Whitefield) | 4.2% |
| 6 | M25 (Prestwich) | 4.4% |
| 7 | M34 (Denton) | 4.4% |
| 8 | M32 (Stretford) | 4.7% |
| 9 | M16 (Whalley Range) | 4.8% |
| 10 | M23 (Wythenshawe) | 4.8% |
The areas showing lowest rental yields are predominantly affluent suburbs where property prices are higher, such as Chorlton (M21) and Sale (M33) both at 3.6%. This pattern is typical as these areas have experienced strong house price growth, pushing up purchase costs, while rental increases haven't kept pace. These locations often attract owner-occupiers rather than investors, explaining the lower yield profile despite their desirable status.
Access our selection of exclusive, high-yielding, off-market property deals and a personal consultant to guide you through your options.
Manchester HMO Rental Market Analysis
(houses of multiple occupation)
There is high demand across the city for rooms to rent in shared accommodation. Below is the top 5 performing areas based on the highest yields. Then we share a summary of the main regions across the city to provide an overview of the Manchester HMO housing market, where you can see the higher yields provided by this property strategy, and why people often ask "are hmo properties worth more."
| Rank | Area | Rental Yield | Weekly Rent per bedroom |
|---|---|---|---|
| 1 | M14 (Fallowfield) | 12.0% | £135 |
| 2 | M40 (Moston) | 7.0% | £137 |
| 3 | M6 (Salford) | 6.9% | £144 |
| 4 | M13 (Ardwick) | 6.5% | £150 |
| 5 | M5 (Salford) | 6.3% | £146 |
North Manchester
- M40 (Moston): Showing strong investment potential with a 7.0% yield and average rents of £137 per week for a double room. Properties are universally well-equipped with 90% offering internet and bills included. The high proportion of living rooms (90%) and parking (90%) makes this particularly attractive for young professionals and students seeking value outside traditional student areas.
- M9 (Blackley): Offering a solid 6.0% yield with average weekly rents of £133, this area features highly furnished properties (96%) with good amenities - 75% include bills and 89% provide internet access. With 75% of properties having living rooms and 82% offering parking, it appeals to budget-conscious sharers looking for more space.
East Manchester
- M13 (Ardwick): Delivering a strong 6.5% yield and £150 weekly rents for double rooms, with impressive amenities - 100% furnished properties, 72% bills included, and 86% internet access. The high proportion of living rooms (83%) and reasonable parking availability (71%) makes this area particularly attractive for HMO investors targeting the student market.
- M11 (Clayton): Although showing a promising 7.3% yield, HMO data shows 100% furnished properties with excellent amenities - 94% include bills and internet. The area offers good value with 81% of properties featuring living rooms and 88% with parking spaces.
South Manchester
- M14 (Fallowfield): Manchester's highest-yielding HMO area (very popular for investors becoming a student landlord) at 12.0%, averaging £135 per week for double rooms. As the premier student location, 98% of properties are furnished and 70% include bills. The high proportion of living rooms (91%) and good internet connectivity (84%) caters perfectly to the student market.
- M15 (Hulme): Located strategically between universities and the city centre, Hulme achieves strong returns with average rents of £154 weekly. Properties are well-maintained with 99% furnished and 87% featuring living rooms, though only 49% include bills. The area's 64% outdoor space availability makes it popular with both students and young professionals.
Central Manchester
- M6 (Salford): Offering an attractive 6.9% yield with £144 weekly rents, this central location boasts 100% furnished properties with high bill inclusion rates (84%). Strong internet provision (92%) and living room availability (89%) make it popular with young professionals and students seeking city proximity.
- M5 (Salford): Achieving a 6.3% yield and £146 weekly rents, this area features 96% furnished properties though lower bill inclusion rates at 41%. High living room availability (92%) and decent internet coverage (72%) attract professionals wanting central living with more space.
Manchester Landlord Licensing
Buy-to-Let Properties
For buy-to-let landlords there is selective licensing in place across key areas of Manchester.
Selective licensing requires all private landlords operating within a designated area to license any privately rented property within that area. The period of designation lasts for 5 years and will include statutory and general conditions aimed at ensuring licensed properties are safe, meet basic standards and they are managed in a satisfactory way.
This includes areas of
- M11 postcode - Clayton & Openshaw area - Ben Street
- M18 postcode - Gorton & Abbey Hey - Hyde Road
- M18 postcode - Gorton & Abbey Hey - The Ladders
- M19 postcode - Levenshulme
- M16 postcode - Moss Side & Whalley Range
- M14 postcode - Rusholme
- M18 postcode - Longsight - The Royals
- M9 postcode - Harpurhey - Trinity
Houses of Multiple Occupation
Landlords who want to invest in or set up a HMO or house in multiple occupation in Manchester are likely to need a mandatory licence.
Here is the link for the Manchester city council mandatory HMO requirements.
Manchester also has a requirement for planning permission, called an Article 4 direction, regulating the creation of new HMOs across the city. This means you need planning permission to change a house from a traditional buy-to-let home (classed as a C3 dwelling house) to a HMO (classed as a C4 house in multiple occupation).
More information about the Manchester Article 4 direction is here.
For investors looking to the west of Manchester and some parts of the city-centre, please note these postcodes may be covered by the neighbouring local authorities or Salford City Council or Trafford Council where landlord licensing differs. If you aren’t sure which council a property falls under you can find the correct local council here by simply adding your property postcode.
Is Manchester Rent High?
Yes, Manchester's rental costs pose a significant financial burden for its residents when compared to their earnings.
In central Manchester, where household incomes are relatively high for the region at £48,900 per year, residents still need to commit nearly a third (31.7%) of their gross income to cover typical rental costs of £297.80 per week. Moving to the popular suburb of Didsbury, despite having some of the city's highest household incomes at £52,100 per annum, residents face even steeper rental costs. Here, average weekly rents of £414.50 consume 41.4% of gross household income.
Even in more affordable areas like Blackley, where weekly rents are lower at £236.10, local households earning £34,400 still need to commit 35.7% of their income to rent.
While Manchester's rental prices might appear moderate compared to renting a buy-to-let in London, the reality for local residents is that housing costs consume a disproportionate share of their income. With most areas requiring over a third of gross household income for rent - before tax, utilities, and other living expenses - Manchester's rental market presents significant affordability challenges for its residents.
Are Manchester House Prices High?
Yes, Manchester house prices are high relative to local incomes, with a situation intensified by significant population growth across the city. Central Manchester (M1) shows average house prices of £278,884 - 5.7 times the local household income of £48,900 - while supporting a growing population of 11,953 residents (up 12% in a decade). In popular areas like M20 (Didsbury), where population has grown 12% to 49,129 residents, the situation is more pronounced with average prices of £381,289 being 7.3 times local earnings of £52,100.
With traditional mortgage lending typically capped at 4-4.5 times household income, and Manchester's postcodes consistently showing price-to-income ratios of 6-7 times alongside steady population growth of 10-12%, the data points to a significant affordability challenge across the city. Even relatively more affordable areas like M9 (Blackley), with its 39,412 residents, show prices at 6 times local income, suggesting a housing market where prices have been driven up by both population growth and limited housing supply rather than local earning power alone.
This house price boom is seeing homeowners and tenants seek out the cheapest places to live in Manchester, and moving further out of the city if affordability is too stretched, to close by towns like Oldham, where they can commute on the tram to Manchester city centre easily.
How Much Deposit Do You Need for the Average Buy-to-Let Property in Manchester?
Assuming a 25% deposit for the average buy-to-let Manchester investor (which is typical for the current market), here's an overview of deposit requirements across different Manchester regions:
North Manchester
- M40 (Moston): A buy-to-let investor looking at an average property in Moston (£221,427) would need to put down a 25% deposit of £55,357.
- M9 (Blackley): In Blackley, an investor would need a 25% deposit of £51,355 for an average property (£205,422).
East Manchester
- M11 (Clayton): For a buy-to-let purchase in Clayton, an investor would need a 25% deposit of £51,207 for an average property (£204,829).
- M18 (Gorton): An investor in Gorton would need to save a 25% deposit of £52,171 for an average property (£208,684).
South Manchester
- M21 (Chorlton): In popular Chorlton, a buy-to-let investor would need a larger 25% deposit of £107,694 for an average property (£430,778).
- M20 (Didsbury): An investor considering Didsbury would need a 25% deposit of £95,322 for an average property (£381,289).
Central Manchester
- M1 (City Centre): A buy-to-let investor in the city centre would need a 25% deposit of £69,721 for an average property (£278,884). M1 is a consistently popular location for landlords seeking the best off-market investment property in the heart of Manchester.
- M4 (Northern Quarter): For an average property in the Northern Quarter (£259,959), an investor would need a 25% deposit of £64,990.
Manchester Population Trends
The population of Manchester as of the last UK government census in 2021 was 551,900 (an increase of 9.7%).
Between the last two censuses, the average (median) age of Manchester increased by two years, from 29 to 31 years of age. This area had the lowest average (median) age in the North West and a lower average (median) age than England (40 years).
Below we look at the largest 10 postcode districts by population across Manchester and the population growth for each over the past 10 years.
| Rank | Area | Population | Population Growth (past 10 yrs) |
|---|---|---|---|
| 1 | M33 (Sale) | 59,972 | 4% |
| 2 | M14 (Fallowfield) | 52,853 | 12% |
| 3 | M20 (Didsbury) | 49,129 | 12% |
| 4 | M24 (Middleton) | 47,250 | 7% |
| 5 | M34 (Denton) | 46,114 | 6% |
| 6 | M22 (Wythenshawe) | 42,201 | 12% |
| 7 | M27 (Swinton) | 41,624 | 18% |
| 8 | M41 (Urmston) | 41,397 | 4% |
| 9 | M40 (Moston) | 40,888 | 12% |
| 10 | M9 (Blackley) | 39,412 | 12% |
The population data reveals interesting patterns about Manchester's development. While Sale (M33) tops the list with nearly 60,000 residents, it's experiencing one of the lowest growth rates at 4%, suggesting it may be reaching capacity as an established suburb. In contrast, areas like Swinton (M27) show dynamic growth of 18% despite already having a large population base of 41,624. The data also highlights Manchester's student influence, with Fallowfield (M14) maintaining the second-largest population at 52,853 and steady 12% growth, reflecting the city's expanding university sector.
Why Invest in Manchester?
Manchester's appeal as an investment destination extends far beyond its property market fundamentals. While our data analysis shows attractive yields up to 12% in areas like Fallowfield and affordable entry points starting from £180,000, the city's true strength lies in its broader economic story.
As a key player in the Northern Powerhouse it is set to see a growth rate of £2.3 billion in its GVA (gross value added) between 2023 and 2027.
Manchester is experiencing unprecedented growth in its digital and creative sectors, with MediaCityUK leading a £5 billion technology ecosystem.
The city's robust educational sector, hosting around 100,000 students across five universities, combines with its thriving employment market - projected to grow 1.7% annually until 2027 - to create sustained rental demand.
This demographic strength is evidenced in our population data, showing significant growth of up to 18% in key areas like Swinton. When coupled with major regeneration projects like the Northern Gateway, a massive regeneration of the city including 15,000 homes and extensive transport infrastructure, public parks and schools.
Manchester significantly also benefits from a major international airport, the largest airport in the UK outside of London, helping to attract international investors, international students and international businesses.
For those landlords and investors seeking property investment advice, on what are the best locations for buy-to-let in the UK, you can see why Manchester offers investors a rare combination of affordable house prices, historic steady growth, impressive tenant demand and growing population and employment. All of this makes Manchester one of the UK's most compelling investment locations around today.
How to Invest in Buy-to-Let in Manchester
For properties to buy in Manchester, including off-market properties and high yielding opportunities, we have partnered with the best property investments agents we can find for 8+ years. You can buy a rental property and get access to the latest property investment opportunities from our network here.