Manchester has officially been named the UK’s best-performing city for capital appreciation over the last decade.
New analysis from Rightmove places Manchester ahead of every other UK city, while London records the weakest price growth over the last 10 years. Despite a more cautious national housing market and despite the recent changes at the top of UK politics, regional cities continue to demonstrate long-term resilience.
What does this mean for investors looking beyond today’s headlines?
For UK or international investors, there has never been a better time to invest in the capital of the North. With rental yields steadily climbing and predicted house price growth at 4.5% per year over the next five years, while areas like London are seeing a plateau in the housing market, Manchester is increasing in notoriety.
The numbers behind Manchester’s growth
Thanks to a steady stream of investment and major regeneration projects like the new Manchester Digital Campus – which will eventually host over 8,000 civil servants and the potential new ‘No. 10 North’ – and the £1.7bn urban redevelopment project, Sister on Oxford Road, Manchester has recorded approximately 63% house price growth over the past 10 years, with London seeing just 7% growth for the same period.
Northern cities continue to dominate the rankings, with Manchester pulling ahead of other major northern cities like Leeds and Newcastle. The key to its success lies in the sustained demand the city has enjoyed over the last decade, compared with short-term market spikes.
Top 5 UK cities for 10-year capital growth
(Data from Rightmove)
But hasn’t the housing market slowed?
With recent reports indicating market hesitancy amid rising mortgage costs, asking prices in some UK regions dipped slightly in June as buyers became more price-conscious. However, the market is becoming more balanced as the supply of new homes increases.
This isn’t necessarily a bad thing for investors, though. Cooling markets don’t necessarily weaken investment opportunities. The slowdown can often mean corrections of over-inflated property prices and allow for steady, data-driven investment decisions, for greater long-term yield potential and capital growth benefits. In other words, they reward investors who focus on long-term fundamentals rather than market timing.
Why Manchester continues to outperform
Economic growth
Despite wider market hesitancy, Manchester continues to outperform other cities with over 3% economic growth over the past year compared to the rest of the UK, outpacing even London. This is largely due to the strong employment market. Businesses continue to invest in northern headquarters thanks to relatively cheaper office space and high graduate retention rates in the city (around 51% of graduates who study in Manchester stay after graduating).
Major brands like Autotrader, Puma and the BBC have set up bases in the city centre, and with an expanding population (up to 250,000 by 2035) and a high proportion of young professionals, more businesses are expected to follow suit.
Regeneration
Manchester is one of the few major cities in the UK that benefits from ongoing regeneration projects, with further interest in underdeveloped areas, through to the next decade. Sister, just a short walk from Vita Living North Circle Square, is one such area. With an investment of over £1.7 billion, this disused part of the city centre is expected to create 10,000 new jobs and 1,500 new homes.
Alongside other investment upgrades, such as the new UK GPA campus and the Manchester Airport upgrade, the city has a major growth plan for the next 10 years, with an expected £10 billion to be added to the local economy.
Rental demand
Although the wider UK property market has seen some hesitancy in recent months, demand is continuing to exceed supply in many areas, including Manchester. Population growth for the city centre is driving increased demand for high-quality developments with unrivalled amenities.
With sustained rental demand, investors benefit from both continued capital growth and proven rental yields of up to 7.5% at Vita Living Circle Square. The combination of long-term appreciation and high rental yields makes Manchester a good option for a sustainable investment opportunity.
Why investors should look beyond monthly house price headlines
Recent headlines and political changes, including the US-Iran war and the Prime Minister’s resignation, amount to short-term market movements. They include factors such as seasonal changes, interest rates, and buyer sentiment, all of which are influenced by broader politics, wars, and current affairs. They can lead to spikes in buying patterns and even the odd decrease in numbers, but they’re much less crucial to the market than long-term investment performance metrics.
These metrics include things like population growth, employment opportunities, housing shortages, regeneration projects, and infrastructure. A successful investment is more likely when considering the market as a whole and the future outlook of a city like Manchester. Buying based on positive long-term market fundamentals is a much safer bet than one month’s house price data.
Is Manchester still a good investment in 2026?
Yes, as one of the UK’s strongest regional markets, Manchester is an excellent investment opportunity, particularly this year.
The potential for high rental yields and long-term capital appreciation remains a compelling choice for both UK and overseas investors, especially as rental demand for city centre apartments continues to climb. For successful returns on investment, investors should focus on location, quality, and developer track record rather than simply chasing growth statistics.
While the latest Rightmove House Price Index shows the national market becoming more balanced, Manchester’s position as the UK’s top-performing city over the past decade reinforces the importance of investing in locations supported by genuine economic growth.
Contact our Vita Living Circle Square team for more information about the incredible apartments we have available and how you can get started with an investment property in Manchester.
You can also view our full range of locations and investment opportunities at Select Property.