When investors ask me whether they should buy in Manchester or Birmingham, I always say: both cities have their merits, but your goals will dictate where your money works hardest.
I’ve worked with expat investors, first-time buyers and portfolio landlords alike, and the Manchester vs Birmingham property investment debate always comes up. Let’s break it down.
Is Manchester a Good Place to Invest in Property?
Manchester is a city on the rise. We’ve got the long-term promise of HS2 (even if it’s been kicked down the road to the 2030s), which will shave valuable time off the commute to and from the South, bringing thousands more jobs within an hour’s reach of Greater Manchester.
MediaCityUK, the city’s creative hub, continues to be a major force in the local job market. With the BBC, ITV, and hundreds of creative and digital businesses calling it home, Manchester has become a media and tech leader in the North, drawing in talent, jobs, and demand for housing.
What’s really exciting is the major redevelopment going on in and around Old Trafford. The area is being transformed — not just the stadium but a whole multipurpose events arena is in the works, with a projected capacity of 100,000. This is huge for year-round tourism and events. If you’re thinking Airbnbs or short-term lets, this is a goldmine waiting to happen.
Touted as the biggest regeneration project in the UK since London’s Olympic Park in 2012, the plans include a whopping 17,000 new homes, 92,000 new jobs, and an extra 1.8 million visitors flooding into the area each year. With that kind of demand, Manchester United estimates the wider scheme could inject over £7 billion into the UK economy annually. It’s the kind of long-term city-building investors will be paying close attention to.
One thing to keep in mind, though: if you’re thinking of buying a flat purely for Airbnb use, you’ll need to buy it in cash. Most lenders won’t offer a mortgage on a property being used as a full-time short-let without the right commercial permissions or licensing. So it’s important to factor that into your strategy.
Beetham Tower put Manchester’s skyline on the map back in 2006 and it’s come a long way since. New icons like The Blade, Three60, and Elizabeth Tower have taken things to the next level.
Is Birmingham a Good Place to Invest in Property?
Birmingham has completely reinvented itself over the last decade. The city centre looks nothing like it did 10 years ago. We’ve seen billions in regeneration, new public squares, canal-side developments, and a real push toward European-style living. I took an expat client around the Jewellery Quarter recently, and he couldn’t believe he was in Birmingham — he thought I’d taken him to Amsterdam.
Developments like JQ Rise, Smithfield Birmingham, and The Axium have brought modern, high-spec living to the city. The Central Business District (CBD) now houses major banks and law firms, turning Birmingham into a true financial hub.
It’s also becoming a filming hotspot. Peaky Blinders was shot here, and the BBC has invested significantly in new studios. That brings culture, jobs, and more demand for rental accommodation.
From a logistical point of view, Birmingham is brilliantly connected. You’re in London in 1 hour 20 by train, and just up the road is Derby — a UK logistics capital. Amazon, DHL, and other major players have distribution hubs there because it’s so central. This industrial strength translates to strong employment and housing demand in the region.
Blue skies over Brindley Place — Birmingham showing off its canalside charm. Who needs Amsterdam when you’ve got this on your doorstep?
Planning Permissions: The Deciding Factor?
This is where things get a bit tricky — and where a lot of investors start to struggle.
Manchester, under mayor Andy Burnham, is seen as investor-friendly. Yes, some areas are nearing saturation with flats, but planning is relatively straightforward. Developers know the rules. The pipeline of new builds continues, and that’s good news for investors looking for off-plan opportunities.
Birmingham, on the other hand, has had serious issues. The city council effectively went bankrupt in September 2023. And if you talk to developers, they’ll tell you—it’s a nightmare to get planning permission approved unless you’re also building a park, a playground, or a community centre. There’s a lot of red tape, particularly in the city centre.
However, that same inefficiency has created a unique opportunity.
Take Smithfield, for example. It’s one of the last large plots of undeveloped central land, covering 17 hectares. This masterplan includes a festival square, public parks, and over 3,000 new homes. It’s already shifting the city centre southwards towards the Eastside District, where regeneration is booming. Buying here now is like getting in just before the new heart of the city fully emerges.
Because of the strict planning controls, central Birmingham isn’t flooded with stock, which keeps prices climbing. It’s a basic supply and demand equation. Great if you already own, tough if you’re trying to get on the ladder.
Read more: How to Get a Mortgage in the UK as an Expat
Manchester United hope to complete the regeneration of Old Trafford by 2030.
Manchester vs Birmingham in Numbers
Let’s boil it down to the key stats:
Source: ONS House Price Index and Private Rental Market stats
When we look at the most recent figures, Manchester continues to outperform slightly in terms of both rental yield and capital growth. This stronger performance reflects the city’s strong pull for young professionals, overseas investors, and major employers. Well-connected, high-spec developments near the city core tend to be snapped up fast, at a premium.
Birmingham, while a touch more affordable, is catching up fast. The ongoing wave of regeneration — particularly around Digbeth and the Jewellery Quarter — is starting to shift perceptions. Rental demand is climbing steadily, and although yields trail slightly behind Manchester, they’re underpinned by a growing base of tenants drawn in by jobs, lifestyle upgrades, and new cultural investments. But planning delays and council inefficiencies mean more friction in the process.
In short, Manchester feels like the established frontrunner — solid fundamentals, high activity, and consistent returns. Birmingham is the contender — slightly behind on the stats for now, but with momentum and long-term potential that’s hard to ignore.
Foreign Investment and the Power of Branding
Both cities attract international interest, but Manchester has global brand power. I’ve had clients invest purely because of the Manchester United name. Even if they don’t follow football, they know the brand, and that kind of recognition goes a long way. Investors from the Middle East and Southeast Asia are especially active—many even turn a site visit into a mini holiday.
Birmingham is getting there too. Its tech, logistics, and film credentials are growing. But right now, Manchester still wins on global appeal.
Read more: How to Know if a Property Is a Good Investment
My Golden Rule for Expat Investors
Even if you’re not buying now, get your research in early. Know your areas, developers, and mortgage options so that when the time comes, you’re ready to act. I’ve seen too many buyers miss out on brilliant developments because they weren’t prepared — and others rush into bad ones because they didn’t do their homework.
Work with a trusted property professional who understands the local market and can flag opportunities early. Whether you go for Manchester or Birmingham, the real advantage is being ready when the right deal comes along.
For more tips on buying a house in Britain, read our latest ebook: 10 Steps to 10k per Month with UK Property. It’s packed with guidance around each step of the property investment journey and real life examples to help it all make sense.
Tom is a Business Development Manager responsible for overseeing events, leading the business development team, and driving client engagement. He specialises in regional property opportunities across high-growth UK markets, including Manchester, Birmingham, and the North West. Many of Tom’s clients are British expats based in the Middle East.