Manchester has overtaken London as the most in-demand city for buy-to-let investment, with new data revealing a decisive shift in where property investors are choosing to focus their attention.
Internal figures from The Property Buying Company show that 23% of investors using the platform are searching for property in Manchester, ahead of the 18% targeting London. Liverpool follows at 8%, with Birmingham at 7% and both Luton and Nottingham at 3%.
The North West also leads at a regional level, with 18% of investors naming it their preferred area in England and Wales.
Karl McArdle, co-founder of The Property Buying Company, says the numbers reflect Manchester’s growing reputation as a primary investment destination rather than simply an alternative to the capital. “Despite not promising the highest rental yield, Manchester has established itself as one of the UK’s most attractive investment opportunities,” he said.
“Our data shows that demand for property in Manchester is nearly three times higher than in Liverpool and more than three times higher than in Birmingham, despite the latter two offering more enticing rental yields of 7.7% and 6.4%, respectively.
“The city ticks a lot of boxes for investors, with a growing population, high rental demand, ongoing regeneration projects, several universities and major employers all helping to attract students and young professionals.
“Manchester has evolved from being an alternative to London into a destination investors actively prioritise. The gap we’re seeing in demand suggests many investors now view the city as one of the safest and most attractive places in the UK to put their money, thanks to its long-term growth prospects, continued economic investment and stable rental demand.”
The buy-to-let case for Manchester is supported by the numbers. Average rents have risen 3% over the past year to £1,349 per month, slightly below the UK average increase of 3.4%, yet the city still delivers gross rental yields of 6.6% against London’s 5.1%. That yield premium, combined with comparatively lower entry prices, appears to be drawing investors who are weighing long-term returns over short-term rental growth.
Price trends are adding to the argument. ONS data shows London property prices fell 2.1% over the last year, while the North West posted growth of 0.8%. For landlords and investors navigating a challenging environment, that kind of stability outside the capital carries real weight.
The broader picture, McArdle suggests, is one of sustained structural demand. “Manchester has established itself as one of the UK’s most attractive investment opportunities,” he noted, pointing to the city’s economic investment and stable rental base as key drivers.
With investor appetite showing no signs of cooling, the data increasingly positions Manchester not as London’s rival, but as a destination in its own right.