HMO statistics Manchester
The population of Manchester is over 550,000 and is the sixth largest local authority in England. It is the largest population in the North and the most densely populated in the North West.
Manchester has boomed economically over the last 20 years, fuelled but growth from the Universities, Football Clubs, and Commercial relocations of large public and private sector firms to the city. The introduction of Article 4 restrictions on HMO developments over 10 years ago has been a significant catalyst to the growth in the price of HMO valuations, and the increase in demand for HMO rooms and rents.
There are approximately 13,500 licenced HMOs in the Greater Manchester area, including just outside of the M60 which extends from Worseley in the North West, to Middleton and Oldham in the North East, including Stalybridge and Stockport, and including Trafford, but excluding Sale.
The biggest concentration of HMOs in Manchester are in Fallowfield, Salford, Trafford and the City Centre. The next biggest areas are around Openshaw and Harpurhey.
Due to Article 4 restrictions we have seen significant growth in demand for HMOs in the peripheral city centre areas, like Droylsden, Ashton-under-Lyme, Denton and Stockport.
Additionally, Greater Manchester areas further out of the M60 are also seeing significant increase in demand due to the growing economy of Manchester which is benefitting traditional mining towns.
70% of HMOs in Manchester are 6 beds and less, 30% are 7 bedrooms and more.
Over half of all licenced HMOs in Manchester are in flats, 25% in terraced houses and the rest a mix of use classes.
Article 4 restrictions on HMOs are extensive in Manchester and Greater Manchester. Article 4 restrictions on HMOs covers Walkden, Swinton, Monton, Eccles, City Centre, Trafford, Stretford, Sale, all the way down to Manchester airport, and then borders at Didsbury, Levenhulme, up to but excluding most of Failsworth, and then up to the M60. It includes all of Cheetham Hill, but most of Prestwich is excluded. The areas outside of Article 4, particularly on the East of Manchester around the M60, are the areas that have seen the most amount of growth in HMO developments and demand.
Manchester HMO Investment
High demand from students and young workers, strong yields (4.5%-6.5%), and Article 4 restrictions make licensed HMOs a premium asset. Regeneration fuels long-term growth. Average property prices are £246,000, with rents at £1,309 a month, up 8.5% from 2024. Yields range from 4.5% to 6.5%.
70% of HMOs have six bedrooms or fewer; 30% have seven or more. Most (over 50%) are in flats, with 25% in terraced houses. There are currently around 13,500 licensed HMOs in Greater Manchester, with the most in Fallowfield, Salford, Trafford, and the city centre with growing demand in Openshaw, Harpurhey, Denton and outer areas like Droylsden and Stockport.
Yes. Article 4 restrictions push demand to unrestricted areas like Denton, Droylsden and Stockport, where Manchester’s economic growth fuels rental demand. Article 4 limits new HMO conversions in areas like the city centre, Trafford, and Didsbury, making existing HMOs more valuable.
Projects like Victoria North (15,000 homes) and MediaCityUK increase rental demand in areas like Collyhurst and Salford and can also increase the value of property. Manchester’s fast growing £63 billion economy; with 1.4 million jobs in tech, media and education attracts tenants to HMOs and is often a cheaper alternative to London. Hospitals like Manchester Royal Infirmary (12,000 staff) and Salford Royal (9,000 staff) drive demand for HMOs for medical staff.
