Across the UK, demand for rental property is soaring.
Data from Rightmove shows that in quarter three of 2022, demand from renters has increased by 20% in comparison with the same period in 2021, pushing up the average monthly rent. The UK average monthly rent is now £1162, an increase of 11% year on year, and a huge 3.2% increase since July.
This is only the third time on record that rents have increased by over 3% or more in a three-month period, showing the effect of the surge in demand on pricing.
The ONS has also published data on the UK’s private rental prices which show that rents in the year to October rose by 3.8%, up from 3.7% in the 12 months to September.
However, the picture is different across parts of the UK, with Manchester second only to Newbury when it comes to rent price increases.
Manchester rental prices soar
Year on year, average month asking rent prices in Manchester have risen from £959 to £1157, exhibiting a 20.5% increase year on year.
This demonstrates how Manchester is becoming increasingly attractive to tenants and investors alike—a trend which looks set to continue as more people move into the region.
The growth in rental prices is being driven by a number of factors, not least of which is the city’s thriving economy and job market. Manchester has become one of the most dynamic cities in Europe, with a range of innovative businesses choosing to call it home. This has created an influx of new people looking for properties to rent, resulting in a buoyant rental market.
Another major factor contributing to the surge in prices is the regeneration of key areas within Manchester, such as Ancoats and Salford Quays. These formerly run-down neighbourhoods have been transformed into vibrant hubs for businesses and residents alike, driving up demand for rental properties even further.
Across the UK, the number of available properties to rent is low—with some locations recording a 30-year low when it comes to the amount of properties listed as available to let.
A change of priority
When looking at areas of rapid rental price increase across the UK, it’s clear to see that city living is very much back on the menu.
While renters headed for the coast and the countryside during the pandemic, with everywhere back open for business, many young professionals now make up a sizeable section of the rental demographic.
In addition, as the residential sales market starts to slow and mortgage rates increase, some home buyers are adopting a wait and see approach, and going into rented accommodation before choosing a new home.
What’s next for the Manchester rental market?
The future of the Manchester rental market looks bright, and it is clear that investors who choose to take advantage of this booming market now will reap the benefits in the years to come. The city’s diverse job market and vibrant social scene make it an attractive proposition for tenants, maintaining a steady stream of demand for rental properties. As such, Manchester remains one of the best places to invest in the UK.
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