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.