As Manchester continues to adapt to the ever-evolving residential property landscape, it's crucial for landlords to stay abreast of the latest market trends. Our team at urbanbubble has been analysing the current data to provide a comprehensive picture of the city's rental market as we progress through 2023.

In this update, we delve into the numbers, focusing on the patterns shaping the Manchester residential property scene and the implications for the future.

Overview

 New data from urbanbubble has revealed that while growth in rental prices for 1 and 2 bed apartments has been steady entering Q3, there's been a dip in the value for studios, 3-bed apartments, and houses over the recent months. Nevertheless, all housing types are still riding high compared to the same period last year.

Current letting activities have shown a marked improvement from the depths of the pandemic. However, they are still not matching the highs of summer 2022. There are also welcome signs of further change for those looking to rent in Manchester with a slight uptick in property availability compared to last year.

Rental progress

 We’ve captured the rental trend over the past five years for studios, and 1 to 3 bedroom apartments, including 2 & 3 bedroom houses in central Manchester.

From July 2022 to 2023, rental figures have shown some impressive growth:

• Studios have seen a 12% jump, shifting from £798 to £895.
• 1-bed apartments recorded a 14% increase, moving from £978 to £1,116.
• 2-bed apartments grew by 11%, from £1,356 to £1,501.
• 3-bedroom apartments rose by 12%, from £1,889 to £2,116.
• 2 & 3 bed houses, on the other hand, witnessed a 7% increase, from £1,642 to £1,755.

Supply and demand dynamics

The ongoing effects of the Covid-19 pandemic continue to shape property management in Manchester even today. Our research team has recorded the availability of apartments at the end of each month since January 2020, broken down by the number of bedrooms.

Interestingly, the number of available apartments in July 2023 was 29% more than in July 2022. However, it's still 43% less than in 2021 and a significant 76% below the 2020 figures.

An additional trend to note: 2-bedroom apartments now dominate the central Manchester market, comprising 62% of the offerings. 1-bedroom apartments come in at 29%, with studios hitting their lowest ever at a mere 1.9%.

Our data provides an insight to the monthly letting activity over the past five years. Historically, summer months have always seen a surge in lettings, while winter months show a decline. This trend was only disrupted during the pandemic years of 2020 and 2021.

The peak of letting activity was in the summer of 2021 with a whopping 1,066 apartments being let in July. However, since then, there's been a dip. As of July 2023, the number of lets stands at 810, making it the lowest since 2020. To put it in perspective, this figure is 8% below the 876 lets in July 2022 and 22% less than July 2021's 1,066.

A better way for landlords

For Manchester landlords, the market's current dynamics highlight the importance of having a keen understanding and a reliable partner for efficient property management in Manchester. The landscape is ever-evolving, and staying updated is crucial for maximising opportunities.

If you're a landlord aiming to navigate this thriving, but complex market, get in touch with our team at urbanbubble. We bring a mix of market knowledge, experience, professionalism and friendly advice to help you make the best of the current Manchester rental market.