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Published on : February 17, 2026 12:43

UK Residential Investment Insights | H2 2025

A tram running through Manchester city centre

Manchester and the North West: Why Landlords Are Still Circling This Market

Manchester continues to be recognised as one of the UK’s most attractive regional residential investment destinations, according to Colliers (1).

According to the firm’s UK Residential Investment Insights | H2 2025, the city’s potential is underpinned by a large and diverse renter base, strong economic momentum, and sustained development activity across the wider North West commuter belt.

Colliers’ latest methodology benchmarks 20 cities across 24 indicators (grouped into five equally weighted pillars), offering a consistent framework to compare investment fundamentals across major UK locations.

This report follows the structure of the Edward Mellor feed article while incorporating Colliers’ H2 2025 findings alongside wider regional market evidence relevant to landlords.

Top UK Residential Investment Cities Report

Colliers ranks 20 UK cities using 24 indicators grouped into five pillars:

  • Economics
  • R&D
  • Liveability
  • Property
  • Environmental (ESG)

Each pillar carries a 20% weighting. Data is normalised so each indicator score sits between 0 and 1, enabling meaningful like-for-like comparison across cities. (1)

For landlords, the most directly relevant measures sit within the Property pillar, including:

  • Rental yields
  • Affordability ratios
  • Income-to-rent ratios
  • Share of renters
  • House price growth

Colliers also prioritises flat-specific data where possible, reflecting the importance of apartment stock within urban rental markets.

Manchester for Landlords

Manchester sits within Colliers’ top five overall in H2 2025 and remains a consistent top performer across all five pillars (top ten in each), reflecting broad-based structural strength rather than reliance on a single growth factor.

What Makes It Work for Buy-to-Let?

1) A Deep, Renewing Tenant Pipeline

Manchester benefits from one of the UK’s largest student ecosystems.

The University of Manchester and Manchester Metropolitan University rank among the UK’s largest institutions by student enrolment (2023/24), supporting steady churn and sustained demand for HMOs, studios, and well-located apartments. (2)

Greater Manchester also reports the largest higher-education international student population outside London (over 21,000 students), which typically concentrates demand in city-centre and inner-ring rental markets. (3)

This creates a continuously renewing rental base — graduating students, early-career professionals, and relocating talent — underpinning long-term occupancy resilience.

2) A “Flats-First” Rental Market

Edward Mellor’s North West Market Update (4) highlights that 54% of homes let in the past 12 months were flats, demonstrating strong demand for apartment-style accommodation across Greater Manchester and surrounding boroughs.

The same update reports:

  • ~£970 pcm average rent for flats
  • ~£1,180 pcm average rent for houses

This provides clear context for landlords choosing between city-centre apartments, suburban semi-detached properties, or commuter-town terraces.

Demand remains strongest where three factors intersect:

  • Proximity to employment hubs (City Centre, Salford Quays/MediaCity)
  • Strong transport connectivity
  • Low-maintenance living formats suited to professional tenants

For investors, this alignment between product type and tenant preference reduces mismatch risk.

3) Price-to-Rent Dynamics That Still Stack Up

Colliers’ Property pillar focuses on investability — not simply headline pricing.

While Manchester’s income-to-rent ratio (23%) sits above some northern peers, it remains materially more accessible than many southern markets. (1)

Crucially, landlords can improve yield dynamics by targeting commuter boroughs where entry prices are lower but rental demand remains supported by transport connectivity and employment spillover.

4) Economic Momentum Supporting Rent Resilience

Colliers projects Manchester’s economy to grow at 2.3% per annum, outperforming most cities in the study. (1)

Sustained economic growth underpins:

  • Employment creation
  • Graduate retention
  • Household formation
  • Rental absorption capacity

This matters for landlords focused on medium-to-long-term holding strategies.

The North West Advantage: Beyond the City Centre

Manchester is the engine — but landlords often achieve stronger returns by viewing the North West as a connected rental ecosystem.

Demand radiates outward along rail and tram corridors into commuter towns where pricing may be more attractive.

Evidence of Rental Growth Across Boroughs

Edward Mellor’s July 2025 North West Market Update highlights measurable rental growth across several Greater Manchester boroughs, reinforcing the strength of demand beyond the city centre. (4)

Examples include:

  • Rochdale: Average rents increased by 17% year-on-year, reaching approximately £959 pcm.
  • Stockport: Average rents rose by 15% year-on-year, reaching approximately £1,206 pcm.

Across Edward Mellor’s core operating areas, rental values are estimated to have grown by around 5% annually, according to data provided via Dataloft.

This data demonstrates that rental growth is not confined to central Manchester. Instead, it is occurring across well-connected commuter boroughs where tenant demand remains strong but entry prices are often lower than prime city-centre stock.

For landlords, this supports a regional strategy that balances:

  • Manchester’s demand depth
  • Borough-level affordability
  • Yield optimisation through lower acquisition costs
  • Ongoing rental growth potential

Transport and “Commuter Liquidity” Are Improving

Greater Manchester’s integrated transport system — the Bee Network — aims to simplify and strengthen cross-region travel across bus, tram, cycling, and active travel routes. (6)

Improved connectivity expands what tenants consider “commutable,” broadening viable rental zones beyond the city centre.

For landlords, this supports:

  • Stronger letting performance in well-connected outer areas (Stockport, Tameside, Rochdale, Salford)
  • A broader tenant pool willing to trade location for space or value
  • Greater pricing resilience supported by infrastructure investment

As infrastructure strengthens, rental “liquidity” increases — allowing secondary but well-connected locations to perform more like prime stock over time.

Regeneration and Investment Pipeline

Greater Manchester continues to promote long-term growth and delivery pipeline across housing and employment sites. (3)

Established employment nodes such as Salford Quays/MediaCity remain focal points for mixed-use expansion — combining jobs, homes, and amenities in a way that reinforces rental sustainability.

Regeneration, when aligned with employment growth, historically supports rental demand durability.

A Buoyant (But Evolving) Market: What Landlords Should Watch

Sales market stabilisation may marginally reshape rental flows.

RICS’ June 2025 UK Residential Market Survey (4) notes buyer demand moving back into positive territory, signalling stabilisation in sales activity — albeit with subdued momentum.

Edward Mellor also highlights two counterbalancing forces (5):

  • Some renters may transition into ownership if mortgage affordability improves.
  • Some landlords are exiting due to regulatory and cost pressures — potentially tightening rental supply in specific submarkets.

Practical Implications for Landlords

  • Focus on assets with “sticky demand” — walkable locations, transit adjacency, strong tenant demographics.
  • Stress-test borrowing assumptions and compliance costs.
  • Prioritise energy efficiency improvements where viable, as EPC standards and running costs increasingly influence tenant choice and void risk.

Key Landlord Takeaways for H2 2025

  • Demand durability: a large student base and graduate retention sustain absorption. 
  • Product-market fit: flats dominate recent lettings across the North West. 
  • Regional strategy advantage: commuter boroughs offer stronger rent growth dynamics at lower entry pricing.

Long-run fundamentals: Manchester’s growth outlook and investment pipeline support rental resilience. 

Contact Edward Mellor Today

The Manchester property market is heating up like never before – and now is the time to act. 

With over 40 years of experience in helping clients to buy and sell property across Tameside, Stockport, Cheshire, and Greater Manchester, Edward Mellor are ready to support you at every stage of your property journey. 

Whether you are looking to move home, secure a buy-to-let investment or sell a property for the best possible price, our local teams are waiting to hear from you. 

We also run the North West’s leading monthly online property auction — delivering a fast, secure, and transparent way to sell.

With competitive bidding, fixed completion timelines, and no property chains, our auction service gives vendors certainty and speed, while attracting serious, motivated buyers from across the region.

If you’re looking for a quicker route to sale, Edward Mellor Auction is built to deliver results.

To discuss your property journey in detail and take the first steps toward a successful transaction, contact our friendly, local experts using the link below.

Contact Us Today

Sources Used 

  1. Colliers: Top UK Residential Investment Cities H2 2025 (PDF)
  2. HESA: Higher Education Student Statistics (UK, 2023/24)
  3. GMCA: International students (Greater Manchester)
  4. Edward Mellor North West July 2025 Market Update
  5. RICS: UK Residential Market Survey (June 2025 PDF)
  6. TfGM: Greater Manchester Transport Strategy / Bee Network

Additional market data via PriceHubble / Dataloft

Related Pages

Buying | Selling | Auction

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