A property app claims its internal data shows that Manchester has emerged as the country’s most in-demand city for investors increasingly looking beyond the capital for growth opportunities.
The Property Buying Company says just under a quarter (23%) of investors on its app are searching for property in Manchester, outpacing the 18% who’ve set their preferences for property in London.
Top 5 most in-demand cities for investors
- Manchester – 23%
- London – 18%
- Liverpool – 8%
- Birmingham – 7%
- Luton & Nottingham – 3%
It suggests that findings reflect a broader shift in property investment priorities, with many seeking areas that combine reliable tenant demand, capital appreciation and long-term economic growth.
While Manchester and London dominate investor interest, Liverpool (8%) and Birmingham (7%) were the next most sought-after locations for investment.
Manchester’s appeal comes as investors look beyond London to balance rental yields, capital growth and long-term demand.
While average rents in Manchester have risen by 3% over the past year to £1,349 per month, slightly below the UK average increase of 3.4%, the city continues to offer higher gross rental yields of 6.6%, compared to 5.1% in London.
This suggests investors are prioritising locations with long-term growth potential over the fastest rental growth.
According to the firm, the North West remains the most sought-after region in England and Wales, with 18% stating it as their preferred region for investment.
While London property prices fell by 2.1% over the last year, prices across the North West increased by 0.8%, according to ONS data showing security in investments outside of the capital.
A company spokesperson says: “Despite not promising the highest rental yield, Manchester has established itself as one of the UK’s most attractive investment opportunities.
“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.”