The Areas of Manchester with the Highest Rental Yields
Manchester boasts a strong rental market, a growing population, high average household earnings for the area, and the UK's fastest-growing city with an impressive tech hub, making it a prime location for landlords and investors looking to build a property portfolio.
However, Manchester comprises many distinct property markets, with Manchester City itself, and Greater Manchester offering a diverse range of yields, tenant profiles, and potential for capital growth.
In this article, we explore the Manchester rental market, breaking down average rents by postcode district to help you identify locations with the right fundamentals to tick off on your property investment checklist for your next purchase.
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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 is the Average Rental Yield in Manchester?
The mean gross rental yield for Manchester is 5.59%
(check out our guide on how to calculate rental yield here)
Using the latest Manchester rent prices, from December 2024, we have analysed the total of all yields divided by the number of postcodes (42 postcode districts from the most recent rental data).
By calculating the yields across neighbourhoods, including high-performing areas like Fallowfield at 12.0% and more stable locations like Salford Quays at 6.2%, the mean yield comes to approximately 5.59%. This figure provides a useful snapshot of the city’s rental performance.
For investors learning how to get into property investment or having completed a real estate training course and buying their first asset, it highlights the city’s overall rental potential.
It's important to consider though the importance of targeting specific postcodes to increase potential returns and align with the highest rental demand.
Which Areas of Manchester Have The Highest Rental Yield?
| Rank | Location | Gross Rental Yield |
|---|---|---|
| 1 | Fallowfield, Moss Side, Ladybarn (M14) | 12.0% |
| 2 | Clayton, Openshaw, Beswick (M11) | 7.3% |
| 3 | Ardwick, Longsight (M12) | 7.0% |
| 4 | Collyhurst, Miles Platting, Moston, New Moston, Newton Heath (M40) | 7.0% |
| 5 | Pendleton, Salford (M6) | 6.9% |
| 6 | Gorton, Abbey Hey (M18) | 6.7% |
| 7 | Ardwick, Oxford Road Corridor (M13) | 6.5% |
| 8 | Ordsall, Salford University (M5) | 6.3% |
| 9 | Salford Quays, Media City (M50) | 6.2% |
| 10 | Blackley, Harpurhey (M9) | 6.0% |
| 11 | Salford Central, Blackfriars (M3) | 5.9% |
| 12 | Northern Quarter, Ancoats, NOMA (M4) | 5.9% |
| 13 | Didsbury (M20) | 5.7% |
| 14 | Manchester City Centre (M1) | 5.6% |
| 15 | Droylsden (M43) | 5.6% |
| 16 | Hulme (M15) | 5.5% |
| 17 | Eccles (M30) | 5.5% |
| 18 | Higher Broughton, Broughton Park (M7) | 5.5% |
| 19 | Failsworth (M35) | 5.4% |
| 20 | Wythenshawe, Northern Moor, Northenden (M22) | 5.3% |
What is a Good Rental Yield in Manchester?
Based on the top 20 highest postcode districts across Manchester a gross rental yield of 6%+ would put you in the top 10 locations across the city for a Manchester buy-to-let property investment.
This is a solid return for a buy-to-let in most property markets, and a high rental yield is important for any property investor as it gives you an indication of the potential returns.
However, for investors using mortgage finance, the yield and return have extra importance, as the overall rental income of the property will impact everything from what product and rate of interest you could get to your loan to value (check out our guide on the meaning of loan to value and what is a good loan to value ratio here).
Which Areas of Manchester Have The Highest Rental Supply & Demand?
| Rank | Location | Available Properties to Rent (per month) | Rent Agreed (per month) |
|---|---|---|---|
| 1 | Fallowfield, Moss Side, Ladybarn (M14) | 211 | 80 |
| 2 | Didsbury (M20) | 117 | 44 |
| 3 | Pendleton, Salford (M6) | 102 | 97 |
| 4 | Hulme (M15) | 101 | 66 |
| 5 | Northern Quarter, Ancoats, NOMA (M4) | 98 | 53 |
| 6 | Ordsall, Salford University (M5) | 98 | 50 |
| 7 | Salford Central, Blackfriars (M3) | 92 | 51 |
| 8 | Whalley Range, Alexandra Park (M16) | 89 | 56 |
| 9 | Manchester City Centre (M1) | 85 | 27 |
| 10 | Ardwick, Oxford Road Corridor (M13) | 66 | 44 |
This table highlights the top 10 rental demand locations in Manchester, showcasing areas with the highest availability and rental activity per month. For buy-to-let landlords, it offers a clear snapshot of where tenant demand is strongest, with M14 postcode district (Fallowfield, Rusholme, Ladybarn, Moss Side) leading the way with 211 available properties and 80 rentals agreed monthly.
This indicates a balanced market with steady tenant turnover, making it an ideal area for consistent tenant demand. Other high-demand areas like Pendleton (M6) have an incredibly high ratio of available properties converting to agreed rentals. This may indicate that rental prices may continue to increase in the short term as demand is so high.
M1 in Manchester City Centre (showcasing a blend of historic victorian gothic architecture and brand new ultra modern sky scrappers) on the other hand is a little more balanced with a smaller percentage of available properties being rented each month, typically indicating a more balanced market or a market where rental prices may have reached a short-term peak, have steadied and could plateau in the short term.
Best Postcodes in Manchester for Rental Returns
Based on the latest rental prices and data, here are the top 3 stand-out locations across Manchester for the combination of the highest rental yields and very strong rental demand with the most properties let-agreed:
M14 (Fallowfield, Rusholme, Ladybarn & Moss Side)
The M14 area includes the suburbs of Fallowfield and Rusholme plus some or all of Ladybarn, Longsight, Moss Side, Rusholme and Victoria Park. They are to the south-east of the city centre with good links by road and bus.
Fallowfield is a very popular student HMO rental market, as it has good access to Manchester’s two large universities, Manchester Metropolitan and University of Manchester.
Student houses generally offer excellent rental yields and it is for this reason that M14 postcode has the highest letting yields across the whole of Manchester and neighbouring towns.
M6 (Pendleton, Salford)
To the west of Manchester is Salford. So close that it's border runs to the heart of Manchester city centre and is minutes walking distance from it's main shopping centre, bars and restaurants.
A popular location to live for its easy commute across the city with the tram network, although technically it is it's own council (Salford city council), but it is part of Greater Manchester.
With one of the highest rental yields and also near the top of both demand and supply of rental properties, it is clearly one of the favourites places to call home for a lot of residents and one of the reason why capital growth in Salford has been so high in the past 10-20 years.
M15 (Hulme)
Hulme is an inner city district just south of Manchester city centre. It has benefitted from lots of regeneration in recent decades and offers many newer-build houses and flats.
Hulme is within walking and cycling distance of the centre and close by to the more expensive parts of the city like Whalley Range, Chorlton and Didsbury. Hulme therefore often attracts residents looking for more affordable homes and cheap areas to live in Manchester whilst still getting all the benefits of living close to the city centre.