Rental Yields in Manchester in 2024

Average Rental Yields in Manchester in 2024

The average property price in Manchester sits at £230,967 according to the Halifax Price Index, and rent comes in at an average of £1,267, meaning that Manchester properties generate an average yield of 6.5%. This is far in excess of the national average, which SDL suggests sits at 4.75%, demonstrating just how impressive the city’s rental landscape is. 

In fact, in the year to April 2023, rental price growth in the region hit 13% and is showing no sign of slowing. The latest research conducted by JLL states that “Manchester is expected to see the strongest rental market growth over the next five years”, outpacing larger cities such as Birmingham and London as students, families and working professionals alike flock to this northern city with its vibrant culture and abundant opportunities. It is predicted that Manchester will achieve rental price growth of 4% on average each year until 2027, which eclipses other investment hotspots across the UK. It’s no wonder this city is widely regarded as the most promising investment hotspot in the country.

Top 10 Rental Yields in Manchester for 2024


Location Avg. Price Avg. Rent (pcm) Avg. Yield
Openshaw (M11) £193,548 £1,225 7.6%
Ordsall (M5) £213,886 £1,229 6.9%
Blackley (M9) £188,206 £1,066 6.8%
Debdale (M18) £179,883 £1,004 6.7%
Greengate (M3) £238,966 £1,274 6.4%
Moston (M40) £196,829 £1,049 6.4%
Seedley (M6) £210,390 £1,087 6.2%
Droylsden (M43) £210,918 £1,072 6.1%
Salford Quays (M50) £222,716 £1,132 6.1%
Kersal (M7) £251,851 £1,259 6%

What is Driving Rental Yields in Manchester?

Manchester has undergone extensive redevelopment over the past few years, and the city’s plans for the future are sure to attract tenants from across the country and the globe. In fact, the population of Manchester is predicted to swell by 30,000 over the next 6 years, which in-turn will generate greater tenant demand and drive up yields.

This influx of people anticipated to come into the city will likely come to work at one of Manchester’s many new development schemes which will create over 65,000 jobs. Some of the most notable regeneration schemes include NOMA, which will create 6,000 jobs, Spinningfields, which has already created 10,000 jobs and counting, and MediaCity, which has made Manchester a key media hub.

What’s more, Manchester’s reputation is attracting tenants from across the country – the city was voted the second friendliest city in the world, is immensely culturally diverse, and has a number of acclaimed educational institutions. From the Russell Group University of Manchester, popular Manchester Metropolitan, and specialist schools such as the Arden School of Theatre and Royal Northern College of Music, the city continues to attract the best academics. With a student population of over 96,0000, there will always be great demand for rental properties near these educational institutions.

This isn’t to mention the opportunities Manchester can offer businesses – with 80 of the FTSE 100 having a presence in Manchester, and the city’s economic growth expected to soar by 2.5% over the next 2 years, many budding businesses are moving into the city. This not only stimulates the local economy, but creates further job growth which brings more people into the region, allowing the city to maintain its impressive rental yields and high levels of demand.

Best Buy-to-Let Properties for Rental Yields

Wondering what type of property to purchase in Manchester for the best yields? Our research shows that studio properties across the city generate the best yields for investors. This bodes well for investors looking to purchase less expensive units, or those considering their first buy-to-let endeavour, as the average studio property in Manchester costs less than £140,000.

Two bedroom properties seem to be the most abundant in Manchester, with data from Home stating that 47% of available properties had two bedrooms. These types of units are particularly flexible, being suitable for young professionals working in the city, couples, sharers or small families looking to live in the city. As such, two bedroom properties in Manchester make a great investment that can be targeted at a number of tenant demographics. However, all property types across Manchester seem to generate yields far in excess of the national average which SDL put at 4.75%

Here at Joseph Mews, we have already started to accumulate an abundance of interest in our latest Manchester offering in the Northern Quarter, an off-plan development that offers one and two bedroom apartments with projected yields of up to 8%.

Property Type Avg. Price Avg. Rent (pcm) Avg. Yield
Studio £139,522 £779 6.7%
One Bed £183.698 £1,048 6.3%
Two Bed £268,737 £1,362 5.5%
Three Bed £328,726 £1,743 5.3%

Based on data from PropertyData and portals.

What Will Affect Your Rental Yield?

Rental yields are dependent on a variety of external factors, but are primarily influenced by demand and the competitiveness of the market you’re investing in. As such, you should carry out as much in-depth research as you can prior to committing to an investment to ensure that your buy-to-let property will generate returns for years to come.

You should also spend time exploring external factors that could influence your investment. Focus on aspects such as nearby career opportunities, redevelopment schemes, availability of property, transport links and tenant demographics – each of these factors could have a direct impact on your yield.

Tenant demographics are particularly important as they will determine your buy-to-let strategy and what type of property you opt to invest in. For example, areas that have a large student population will suit a HMO investment, whereas other areas may be more suited to a 2-bedroom apartment that appeals to young professionals or sharers.

Want to Know More About Manchester?