The North West property market continues to outperform in ways that matter to investors: yield, growth, and fundamentals that hold under scrutiny.

We’ve analysed the latest data from Q4 2025, and the evidence is clear—this region offers some of the most compelling investment opportunities in the UK right now. Here’s what the numbers tell us.

Performance That Delivers

The North West is currently delivering 8% average rental yields across the region. That’s not selective data from outlier postcodes—that’s the regional baseline.

House price growth sits at 2.9% annually, with Manchester recording 2.1% year-on-year growth to an average of £250,000. Oldham is posting 4.4% annual increases, while Warrington and Preston continue to demonstrate consistent performance as prime markets within the region.

The five-year outlook projects 27-30% cumulative price growth by 2030, supported by economic expansion, population growth, and persistent undersupply. That’s capital appreciation alongside cash flow that already outpaces most UK markets.

For investors building portfolios, the North West offers both income stability and medium-term growth potential—without the capital requirements or yield compression seen in higher-priced regions.

Manchester’s Economic Fundamentals

Manchester’s economy is forecast to grow at 2.1-2.5% annually between 2025 and 2028. That’s nearly double the UK national average of 1.2-1.4%, making it the second-fastest growing city economy in the country.

Employment growth is projected at 1.8% per year—the highest of any major UK city. By 2026, Manchester’s economy will have expanded by £2 billion compared to 2022 levels, driven by its tech sector, professional services, and ongoing infrastructure investment.

Population growth is keeping pace. Manchester is on track to reach 600,000 residents by 2026, with the city centre alone expected to accommodate 100,000 people. The wider North West is growing at 1.24% annually, making it the second-fastest growing region in England.

More employment. More population. More demand. These are the structural drivers that support investment-grade property performance.

HMO Market: Strong Yields, Proven Demand

The HMO market in the North West consistently delivers 8-10% gross yields, with certain areas—particularly the M14 postcode around Fallowfield—achieving 9-10%.

Manchester hosts over 100,000 students across four universities: University of Manchester, Manchester Metropolitan, University of Salford, and University of Bolton. This creates permanent, renewable tenant demand that underpins occupancy rates and supports rental growth.

Beyond student accommodation, young professionals continue to migrate to the region, attracted by employment opportunities, affordability, and connectivity. Areas like Salford, Clayton, and Gorton maintain occupancy rates above 96% with median tenant tenure of 18 months.

Between 2024 and 2025, HMO insurance policies in Manchester grew by 13%. The market isn’t saturating—it’s expanding in line with demand fundamentals.

Four Micro-Markets Worth Monitoring

Strategic investors look beyond city centres. Here are four towns where price, growth, and yield dynamics create genuine opportunity:

Oldham
Average price: £206,170 | Annual growth: 4.4%
Accessibility without premium pricing. Strong Metrolink connectivity to Manchester supports commuter demand while prices remain favourable for portfolio expansion.

Stockport
Recognition: Named top place to live in the North West
Transport infrastructure, lifestyle amenities, and prices that haven’t yet reflected desirability. Strong potential for both capital growth and quality, long-term tenants.

Warrington
Status: Best performing prime market in the North West
Strategic location between Manchester and Liverpool. Dual-city employment access attracts professionals seeking space and value without compromising connectivity.

Preston
Rental yields: 6-8%
University city with consistent student demand, supplemented by professional renters. Lower entry costs than Manchester make it effective for capital deployment across multiple units.

Five-Year Forecast: What to Expect

Savills projects the North West will achieve 27.6% total growth by 2028, with year-on-year increases of 5.5% in 2026, 6.5% in 2027, and 5.5% in 2028. Extending that trajectory suggests cumulative growth approaching 27-30% by 2030.

This isn’t speculative projection—it’s driven by undersupply, economic growth exceeding national averages, population expansion, and rental demand consistently outpacing available stock.

Rental growth is forecast to sustain at 3-4% annually through 2026, supported by chronic undersupply in key regional hubs.

For investors, this means cash flow today and capital appreciation over the medium term. Both metrics are working in the same direction.

Why This Matters

At Forth Action Invest, we operate on evidence, not optimism. The North West presents a rare alignment: lower entry prices, superior yields, economic growth, and demographic expansion all supporting investment performance.

We’ve deployed over £50 million across 300+ units in this region because the fundamentals consistently deliver. Our managed portfolio maintains 96% occupancy with yields averaging 8-12% across HMO assets.

This isn’t about chasing headlines. It’s about capital deployment where data supports returns.

The North West offers investment-grade opportunities for those prepared to act on evidence rather than sentiment.

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Ready to deploy capital strategically?
Forth Action Invest specialises in sourcing, developing, and managing high-performance property investments across Greater Manchester and the North West. Schedule a consultation with us to see how we can help maximise your next acqusition. Book here