Manchester

39% of North West landlords surveyed think Manchester is the best city for Buy to Let investment
40% of commercial property professionals thought semi-commercial properties provided a significant opportunity (over the next five years)
77% commercial property professionals were in favour of introducing a system of strategic planning across combined authorities (as part of the Government’s Planning and Infrastructure Bill)

Industrious and inventive, Manchester has been at the very heart of commerce in the North for over a century.

Today, the city is a buzz with the sound of students, start-ups and sales, especially as it attracts and retains top talent as a thriving hive for the tech industry.

But how is business and commercial property investment fairing in the Northern Powerhouse? We looked at Manchester’s Buy to Let, Office, and Retail & Distribution markets to find out.

City insights

£1,310 average private monthly rent in Manchester (March 2025)
Planning permission (24%) is the biggest challenge for Manchester’s portfolio landlords surveyed in 2025
67% of Manchester’s landlords anticipate increased yields over the next 12 months

Greater Manchester, and the North West in general, continue to surpass national averages for both house prices and rents, making it easy to see why the area has been highlighted as the top hotspot for Buy to Let in 2025.

Manchester landlords pointed to refurbishing properties to change their use (23%), renovating empty properties (23%) and student housing (21%) as the most attractive asset classes for investment in the coming year.

Student housing in Manchester

Student housing and HMOs look set to be key opportunities for landlords, as Manchester’s academic facilities, vibrant culture, and growing tech and media industries continue to attract and retain students, graduates and young professionals.

Although the city has a healthy pipeline of Purpose Built Student Accommodation (PBSA) including developments by X1 and Vita Group. With currently 2.5 students per bed, demand for the vital rental accommodation is set to see further opportunity-seeking investors get involved in the sector. Landlords with HMO properties could capitalise on this demand delivering higher yields compared to typical Buy to Lets, and providing options for graduates remaining in Manchester once they transition to the workforce.

Find out how specialist Buy to Let and HMO mortgages can help you achieve your rental ambitions.

Buy to Let and HMO mortgages

City insights

1.05 million sq ft of office space under construction (Q4 2024)
29% annual increase in office take-up in 2024
90% of Manchester investors said office space would be a strong investment opportunity over the next five years
34% increase in revenue expected in next five years
A quarter saw prioritising energy efficiency as a current trend in office refurbishments

With over 10,000 digital and tech-based companies calling Manchester home, it’s easy to see why the city has become an attractive hub for the tech industry. In fact, the northern powerhouse ranked second, behind London, as the best city to start a new business in a recent survey of UK tech industry leaders.

The Oxford Road Corridor Enterprise Zone is a great example of an initiative that’s stimulating the growth in ICT jobs, as well as those in the life sciences, health innovation, med tech and advanced materials sectors. This is leading to the retention of academic talent and an influx of young professionals, bolstering the workforce and bringing new skills to all sectors.

However, even with over a million square feet of office space currently under construction, there isn’t enough space to fill demand, especially for Prime and Grade A properties. As such, developers and investors may be looking at how they can refurbish their current property portfolio to offer better facilities to accommodate the growing trend for best-in-class.

Commercial property professionals and investors based in Manchester pointed to modernisation (44%) and wellness focused upgrades including gyms and relaxation areas (38%) are elements they’ve seen the most in recent office refurbishment projects.

Coworking spaces in Manchester

Not every business needs a dedicated permanent office. Whether that’s established companies that have fully embraced a remote / hybrid working environment, assisted by greater collaboration and communication technologies, or sole-traders and start-ups who can’t justify paying a full-time rent. But occasionally, they may need access to some of the benefits an office can provide.

That’s where coworking spaces can be valuable, providing optimal working conditions, access to amenities such as printers and meeting rooms, greater flexibility, and networking opportunities.

Currently, Manchester offers the second highest number of coworking spaces in the UK, after London, with 78 properties providing services. This number only looks set to grow in 2025, including two new locations from Colony confirmed for Spring Gardens and King Street.

In our survey of 500 commercial property investors, developers and professionals across the UK, 35% said that communal, mixed use and coworking spaces were a current trend they were seeing in office refurbishments.

Whatever the size of your business, there may come a time when you need additional funds to pay a tax bill, relieve cash flow issues or invest in property. Find out how our secured business loans can meet your needs quickly and easily.

Secured business loans

City insights

203,500 people (16%) employed in the wholesale, retail, hotel and restaurant sector (Autumn 2024)
Manchester city centre ranked top retail and leisure location in UK (Colliers)
35% average expected increase in retail revenue over the next five years
76% thought retail shops would be a good investment over the next five years
79% thought semi-commercial properties would be a good investment over the next five years

In 2024, Manchester city centre had a footfall of over 37.5 million visitors, presenting numerous retail opportunities for both chain retailers and independent shops. The area surrounding the Arndale Centre continues to be Manchester’s major retail hub, employing more than 13,500 people and housing 1,200 retail businesses.

In January 2025, the Greater Manchester Business Board announced a new visitor economy plan, setting out ambitious plans to boost tourism to the region and add an extra £15bn to the local economy.

Commercial property professionals in Manchester pointed to the impact of e-commerce (37%) and the shift to experiential and service led retail (23%) as the most important factors when making retail property investments.

The return of the traditional ‘Town Centre’ in Manchester

In recent years, our town centres and high streets have been in decline, decimated by the pandemic and changing buying habits as customers embraced online shopping as well as more competition for disposable income from the leisure and hospitality industry. It’s a trend marked by more empty shop fronts, the loss of high street favourite brands including W H Smith, and a rise in out of town retail and online shopping.

But many towns in Greater Manchester are fighting back with ambitious plans to attract customers by reinventing retail, refurbishing properties, improving open spaces, and mixing in more leisure, hospitality and residential options. Key examples include:

Nationally, local councils have gained new powers to help combat the growing number of empty shops on their high streets. Under the High Street Rental Auctions legislation, councils will be able to auction off leases on long-term vacant properties in a bid to boost local economies and job markets, as well as supporting small and medium-sized enterprise (SME) businesses.

If you’re setting up shop or branching out, our commercial mortgages could help you secure the perfect premises to grow your business.

Commercial mortgages

Any property used as security, including your home, may be repossessed if you don’t repay your mortgage.

Together is a trading style of each of the undernoted companies, which have their registered office address at Lake View, Lakeside, Cheadle, Cheshire SK8 3GW. Together Commercial Finance Limited | Registered in England and Wales - Company Registration Number 02058813.

Get in touch