Manchester is the highest-ranking English city for residential investment, according to commercial real estate firm Colliers.

In the latest edition of its UK’s Top UK Residential Investment Cities report Manchester scored third overall in the ranking, behind Scottish cities Edinburgh (first) and Glasgow (second), which remained steadfast in their position since the previous iteration of the report in H2 2023. 

The biannual report analyses 20 locations within the UK against 24 indicators, including GDP, population growth, EPC rankings and leisure facilities. 

These indicators are grouped into five categories: economy, research and development, liveability, property and sustainability, to cover the various interests of residential investors. 

Manchester’s new position as the top English city is a result of its strong economic performance, as well as favourable property factors. The city has had a record house price growth of 33% during the last five years, far outstripping the report’s 20-city average of 15%. 

It is also predicted to have a strong GDP growth at an annual rate of 2.2% during the next five years, which is also above the 20-city average of 1.8%, while the unemployment rate is forecast to average 3.7% during the same period. 

In addition, Manchester’s population is projected to increase by 1.14% per annum over the next 10 years and boasts the second highest student population in Colliers’ analysis behind London. It also had a significant proportion of residents who live in rented accommodation. 

A further strong indicator for investment in the city is the number of entrepreneurs living in the city who are starting up new businesses.

Andrew White, Head of UK Residential & International Properties Asia at Colliers, says: “Manchester has gone through a significant transformation including redevelopment in recent years across the housing tenure mix, so it’s only natural that it would rank highly in our analysis. 

“In addition, we’ve witnessed lots of large corporations and government bodies moving their headquarters to the city in the last five years, such as, JP Morgan, Octopus Energy and Rolls Royce, which has naturally resulted in increased demand for homes, and bolstered significant house price growth in the city.

“The local authority has also been very active in welcoming developers to make changes in the city through regeneration projects such as NOMA as well as build-to-rent and single-family housing developments in the city’s suburbs, so it’s not surprising at all to see Manchester rank as our highest English city for residential investment.

“Furthermore, Manchester’s economic and residential growth highlights the need for strategic expansion to meet housing demand.”

He says Deputy Prime Minister Angela Rayner’s recent announcement regarding the Government’s new house building plans is an important step in this direction to addressing housing shortages. As Manchester continues to attract residential investment and experience population growth, the availability of greybelt land for development will support sustainable urban expansion.

“By incorporating these additional areas, Manchester can maintain its economic success and residential appeal, providing much-needed housing while preserving residents’ quality of life.  Manchester’s top position in Colliers’ report showcases its growth and investment potential.”

Colliers Top UK Residential Investment Cities H1 2024:

1.    Edinburgh
2.    Glasgow
3.    Manchester
4.    London
5.    Oxford
6.    Milton Keynes
7.    Belfast
8.    Cambridge
9.    Leeds
10.    Cardiff