July 1, 2025
UK Property Market / Manchester
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Rents across Great Britain have once again climbed to record levels in Q1 2025, painting a clear picture: the rental market remains resilient – and in some areas, red hot.
According to Rightmove’s latest Rental Trends Tracker, average asking rents outside of London have reached £1,349 per calendar month, a 0.6% rise on the previous quarter and a 4.5% increase year-on-year. Even Greater London saw a modest uplift, marking its 14th consecutive rental price record.
But if you zoom in, there’s one region that’s making a particularly strong impression: the North-West.
North-West tenant demand and investor returns
With 18 tenant enquiries per rental property (more than double London’s average of eight!), the North-West currently tops the charts for rental demand. And it’s not just demand that’s up. Rental values in this region are climbing rapidly, Stockport alone saw a staggering 16.1% year-on-year rise, scoring the second highest rise in the whole of Britain.
Alongside demand, yields in the region remain highly attractive. Landlords in the North West are currently enjoying average yields of 7.2%, well above the national average of 6.3% and significantly outperforming London’s 5.7%. This strength in yield, combined with the region’s consistently high enquiry rates, makes the North West, and Manchester in particular, a standout choice for buy-to-let investors looking for long-term gains.
Stabilising rental landscape
What’s particularly encouraging is that rental prices are continuing to rise even as more stock enters the market; there’s been an 11% uplift in new listings and an 18% increase in overall availability compared to this time last year, yet the rental market is growing as strong as ever.
This welcome boost in supply is helping to create a more balanced rental landscape, giving tenants greater choice while still maintaining strong returns for landlords.
While we are seeing a few more price reductions than in previous years, this simply reflects a move towards more realistic pricing in some pockets. Importantly, average rents are still climbing steadily, and rental demand remains sturdy – enquiry levels per property are still more than double what they were pre-2019.
What does this mean for investors?
For landlords and property investors, the message is clear: the fundamentals remain strong. High yields, increasing tenant demand, and record-breaking rental figures continue to shape the North-West as a powerhouse for property investment.
As more rental homes come to market and the Renters’ Rights Bill looms on the horizon, landlords who offer quality, well-managed accommodation are likely to stay ahead. The priority is shifting slightly – from simply securing tenants, to finding the right long-term renters. But for investors playing the long game, the current climate is still full of opportunity.
Speak to our team to hear about our favourite investment hotspots (spoiler: Manchester is up there), and start your journey today.
What does this mean for owner occupiers?
For owner-occupiers, these changes show a real window of opportunity. Interest rates and mortgage deals are gradually improving, and affordability is beginning to move in the right direction.
At the same time, rental prices are rising. This means monthly mortgage repayments in many areas are again comparable, or considerably lower, than rent payments. A lot of first-time buyers hold off for the ‘right time to buy’ – however, it’s worth recognising that the market rarely offers perfect conditions. The best step you can make is to get involved. Rising rents, growing competition, and lowering mortgage payments makes right now a smart time to take the leap.
Waiting could simply mean paying more in the long run – whether that’s in rent or house prices.
If you’re ready to take that step, our team are here to guide you. Get in touch to find your new home in the city.
