Manchester has emerged as Britain’s premier city for renters, boasting a
thriving rental scene where 62% of households opt to rent rather than buy –
making it hugely
attractive for landlord investors.
This northern powerhouse won the accolade after experts evaluated factors
like tenant contentment, university presence, job prospects and housing
costs.
The city’s landlord appeal stems from its 133,126 rented homes, bolstered
by a hefty student cohort of 88,997 – that’s more than four times that of
second place Norwich’s student population of 21,375.
Manchester also has a network of 2,788 transport links, a solid 73% tenant
approval rating and a reasonable affordability score of 7.07 – so it
outshines pricier London at 13.51.
Cheap rents help make the city a magnet for young adults who account for
17% of its population – they also enjoy a 65% employment rate.
Attractive for students
The research was carried out by Property Investments UK who said:
“Manchester’s appeal as a rental hotspot lies in its dynamic mix of
culture, connectivity and opportunity.
“The city’s extensive transport network, thriving university scene and
vibrant social atmosphere make it incredibly attractive to renters,
particularly young professionals and students.
“For investors, these qualities ensure a steady influx of tenants and
sustained rental demand, making Manchester a compelling choice for building
a property portfolio.”
Researchers also praised the city’s culture, transport provision and
potential prospects of tenants.
The firm adds: “For landlords, this ensures a constant tenant flow and
robust demand, positioning Manchester as a prime spot for property
portfolios.”
Norwich has happy tenants
Norwich secured second place, with 57% of its homes being rented, that’s
36,985 properties, and its student population also helped fuel rental
interest.
Tenant happiness in Norwich sits at a commendable 64%, with an
affordability figure of 7.03 and a serene setting enhanced by a 15% senior
demographic, contrasting Manchester’s 9%.
Oxford shines with a 78% tenant satisfaction score, driven by 46,250
students and a thriving economy, where 53% rent.
Yet, soaring house prices – up 10% to £549,581 – push younger residents
towards renting.
Nation’s largest rental area
Meanwhile, London dominates as the nation’s largest rental area, with more
than 1.8 million rented homes.
It boasts of lots of transport links and an impressive 76% employment rate,
but it has expensive rents.
At the opposite end, Rochford ranks as Britain’s least renter-heavy area
with 19% of households renting, or 6,679 properties.
Though tenant approval hits 72%, its scant 33 transport stops and 6% young
adult share foster a calm, family-focused vibe better suited to homeowners,
with a 9.15 affordability metric.
Best for tenant joy
From the results, Fareham and Bromsgrove, both at 21% of rental households,
excel with tenant joy at 84% and 78%, respectively.
Solihull impresses with an 81% satisfaction rate and a youthful 27%
demographic, blending renter demand with liveability.
And Stroud, with 26% of tenants aged 18-24, draws in spirited younger
tenants with its affordable rents and energetic community.
Liverpool stands out for affordability among renter-dense cities, with a
house-buying ratio of 4.89, while Nottingham leads in young adult numbers.
Cities flourish with strong student bases
The
firm’s real estate experts
also highlight shifting trends in the private rented sector and say:
“Britain’s rental landscape now favours spots balancing cost, contentment
and charm.
“Cities like Manchester and Liverpool flourish with strong student bases,
employment and infrastructure. Tenant happiness is key for investors –
areas with good transport and amenities promise lasting growth.”
They add: “Smaller towns and suburban zones are gaining traction as remote
working reshapes housing needs. Looking forward, regions blending
affordability, resident satisfaction and varied populations will yield top
returns for savvy investors tapping into Britain’s rental boom.”
A golden opportunity for student landlords
Simon Thompson, the managing director of Accommodation for Students, said:
“Student landlords should see Manchester as a potential goldmine – it has
lots of students and a great transport network.
“Student landlords who invest in the areas highlighted in this report
should enjoy long term investment success.”
He added: “There’s no doubt that youthful demographics and university life
fuel demand and Manchester’s large student population is proof of that.”
