Manchester property guide 2025: Overseas buy to let investment

Location is arguably the most important consideration for any investor. Find the right place and you will give yourself the best chance of earning capital appreciation and a growing monthly rental income.

UK property market activity is increasing and this is an ideal time to invest ahead of the new property cycle.

Here’s the most important reasons why overseas investors should buy Manchester property.

How fast are house prices growing in Manchester?

The latest figures from the Office for National Statistics show that the average house price in Manchester has increased by 8.4% in the last year. This is some of the highest growth you will find in the UK and 2% higher than the national average.

In the future, that growth is set to continue. Manchester is at the centre of the North West region which Savills has forecast to be the fastest growing residential market in the UK over the next five years.

According to this data, the average house price in the North West will be 29.4% higher by the end of 2029, compared to the national average of 23.4% over the same time scale.

Strong rental growth in Manchester makes it perfect for investors

Rents in Manchester have been growing fast for a long time. In 2023 following Covid, they grew by approximately 20% in one year. Growth was not quite as strong in 2024, but it was still high. In the last 12 months, rents have gone up a further 7.7%, to a total of £1,310 per month on average.

Additionally, rents are set to keep growing. Savills has predicted average rental growth of 17.6% by the end of 2029. Additionally, research from Paragon Bank shows that rental yields in the North West are currently as high as 7.85% - some of the strongest in the UK.

Not enough homes for the city’s growing population

The future house price and rent increases are forecast due to Manchester’s extremely fast population growth.

Manchester’s population grew by 19% over the last Census period, and the City Council estimates that a further 7,000 people each year are moving to the city centre alone.

That makes any opportunity to buy Manchester apartments in the city centre a valuable opportunity for overseas investors. In particular, the luxury apartment market is extremely popular with young professionals who are willing to pay the highest rents.

As more people move to the city centre, competition for the available homes will keep growing and rents are likely to increase further.

Lack of housing supply in Manchester offers buy to let boost

Manchester is building a lot of homes, but nowhere near quickly enough. As above, we can expect more than 20,000 people to move to the city centre areas alone in the next three years if Council figures are correct.

However, the Deloitte Crane Survey 2025 shows that there are only 10,788 new homes in construction and set to be completed in the next four years. That lack of new homes is the foundation of the house price growth we are expecting to see in Manchester – and what makes the city and ideal prospect for overseas investors.

How does Manchester’s booming economy affect house prices?

Why do people keep moving to Manchester in such large numbers? The answer is the city’s booming economy which is creating well paid jobs for highly skilled people.

125,000 jobs were created in the last Census period, and EY’s regional growth forecast shows that Manchester’ economy is growing at a rate of 2.2% a year for the next two years.

That is the second highest rate of growth in the UK and it is delivering employment in key modern industries like technology, communication and robotics.

How many students are there in Manchester?

Manchester is home to one of the UK’s most significant higher education sectors. More than 100,000 students, including tens of thousands of international students, come to the city’s universities each year.

There are nowhere near enough student beds for them, and many will take accommodation in the private sector, especially those students who come from abroad. They are a key group of people for overseas investors.

What’s more, it is estimated that up to 50% of Manchester’s students stay in the city following graduation, adding even more people into the mix for the available rental properties.

World class connectivity and culture in Manchester is good for property growth

Finally, Manchester is a connected city with a vibrant, exciting culture that draws people in. Road and rail links to London, Birmingham and many other UK destinations make Manchester a fantastic place to live.

Add in Manchester Airport which serves more than 200 destinations around the world, and you have an ideal base for exploration. It has also recently completed a £1bn expansion and there are more transformation works underway.

The city’s culture offers something for everything. World class music, retail, bars, restaurants and much more are there for residents and help the city attract people from around the world – and all of them need housing.

Manchester is the UK’s best investment location for overseas investors

Manchester offers everything that an overseas investor needs. The city has a lot of people and not enough homes for them all. House prices and rents are both going up and forecast to keep growing in future.

Luxury city centre apartments like those at Uptown are a valuable commodity and a great investment for anyone, including overseas buyers.

Want to learn more about buying Manchester property as an overseas investor? Get in touch with the team today to learn more about the city’s property market and our available investment opportunities.