Manchester Rental Yields: A Good Area to Invest?

Average Rental Yield in Manchester

For property investors, Manchester stands out as one of the UK’s most attractive buy-to-let markets, offering an average gross rental yield of around 6.3%, comfortably above the national average. Analysis of the top 20 highest-yielding postcode districts shows that achieving a 6%+ rental yield in Manchester would place an investor in the top 10 locations across the city, a clear benchmark of a high-performing investment. 

This strong yield is underpinned by Manchester’s growing population, buoyant job market, and thriving student base, which keeps rental demand consistently high. With the average property price at £250,000 as of April 2025, up 8.2% year-on-year, investors benefit from both competitive entry prices and healthy capital growth prospects. The growth Manchester experienced largely outpaced the overall rise in the North West, which was 3.1% during the same time. 

Combining rising rents, affordable purchase prices, and robust demand, the Manchester property market offers investors an excellent opportunity to maximise both income and long-term returns in a resilient and dynamic market.

Ancoats

Ancoats has rapidly evolved into one of Manchester’s most desirable neighbourhoods, particularly for young professionals. With its mix of stylish modern apartments, converted mills, and a vibrant dining and cultural scene, demand for rental properties here is strong. Investors benefit from some of the best rental yields in Manchester and the honour of owning in one of the city’s trendiest areas.

Pendleton, Salford

Located to the west of the city centre, the Pendleton area offers some of the best rental yields in Manchester. Its proximity to Manchester’s main shopping, dining, and business districts makes it a highly convenient and sought-after place to live. The area enjoys strong demand and a healthy supply of rental properties, which has driven both yield performance and significant capital growth over the past two decades.

Manchester’s large and stable student population, one of the biggest in Europe at over 100,000 students, further underpins the city’s rental market. Around 51% of graduates stay in the city after completing their studies, moving from student housing into the professional rental market and ensuring a steady stream of tenants. 

Together, the influx of young professionals, high graduate retention, and ongoing regeneration projects are keeping demand for rental homes strong and competitive. This sustained demand enables landlords to increase rents while maintaining high occupancy, resulting in rising rental yields in Manchester and making the city one of the UK’s most attractive cities for buy-to-let investors seeking both income and long-term growth.