Mortgage Rates & Inflation on Manchester’s Property Market

Sep 20, 2023

Feeling lost in the complex property marketplace puzzle? Don’t worry, you’re not alone! In this article, we’ll shed light on the current inflation rate, recent changes in mortgage rates in the UK, and how they directly impact UK house market, specifically in Manchester. Whether you’re aspiring to own a home or make a savvy property investment, this is an article you won’t want to miss. Explore UK house prices, mortgages, and the opportunities in this ever-evolving market.

We’ll delve into the intricacies of average house prices in Manchester, the inflation rate, and housing finance industry alterations. Drawing on data and expert insights, we’ll explain how these factors influence property values and how you, as an investor or home buyer, can seize the best deal. Discover how these dynamics might affect your future decisions.

At Rothmore Property, we’re dedicated to keeping you informed about your property search. Our goal is to provide you with current and comprehensive industry information so you can make well-informed decisions. With Rothmore Property by your side, navigate the property space with confidence. Stay tuned and let’s embark on this property journey together!

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The Current State of Mortgage and Inflation Rates

Monthly inflation of house prices in the UK, is calculated using data from HM Land Registry, Registers of Scotland, and Land and Property Services Northern Ireland. Let’s dive right into the heart of the matter. Recent reports from USwitch and Forbes reveal a significant decrease in mortgages in the UK. Fixed mortgage rates have dropped below 5% for the first time since July, as reported by This Is Money.

Graph of Mortgage rates changes over 2023

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According to the Office of National Statistics, the Consumer Prices Index including owner occupiers’ housing costs (CPIH) rose by 7.9% in the 12 months leading up to May 2023. This represents a slight increase from 7.8% in April, but a decrease from the previous peak of 9.6% in October 2022.

Figure 1_ Annual CPIH and CPI inflation rates little changed between April and May 2023

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How does this impact Manchester’s property market?

Mortgage and inflation rates directly influence property prices in the city. Properties in Manchester had an overall average price of £299,535 over the last year according to Manchester Evening News. But the recent drop in mortgage rates could indicate a shift.

Reduced Rates

Reduced rates of mortgages and inflation, have two effects on property prices. Firstly, they make monthly repayments more affordable, encouraging individuals to climb the property ladder and seek a better deal. Secondly, they reduce mortgage costs, increasing purchasing power. This presents opportunities for investors, first-time buyers, and those interested in buy-to-let mortgages. Staying informed about property industry trends is crucial.

Base Rate

The Bank of England base rate has been steadily increased over recent months in order to tackle inflation. In August, there was an increase from 5% to 5.25%, marking the highest level since the 2008 financial crash. As inflation decreases, experts now anticipate the rate to reach a peak of approximately 5.75% in Spring 2024, which is lower than initially expected.

These high interest rates have been put in place to help drive down inflation and as mentioned, UK inflation has been on the decline since these measures were introduced. It is projected that inflation is to gradually decline to the Bank of England’s target of 2% by early 2025. Once inflation is under control and is consistently heading in a downwards trajectory, the Bank of England will look to start lowering Interest Rates.




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Lower UK interest rates, will help increase demand for Manchester property further, making ownership more accessible. With reduced monthly repayments, individuals and families can enter the property industry sooner, securing a better deal and moving up the property ladder.

Cracking the Code: The Impact on Manchester’s Properties

So, what does all this mean for the property industry in Manchester? Well, it’s good news! With lower mortgage deals, borrowers can enjoy reduced borrowing costs, making it a good opportunity for potential homeowners and investors to secure a mortgage or consider purchasing off-plan property.

The Manchester property market has been consistently growing over recent years, attracting an increased number of owner occupiers and investors. When exploring your options, it’s crucial to consider factors such as interest rates, possible lenders, mortgage brokers, deposit size, monthly salary, current savings, monthly bills, your eligibility and possible early repayment charges . There are various borrowing and repayment choices available, so its important to do your research. Taking these factors into account will help you make informed decisions in your property journey.

View of a footbridge in Salford quays in Manchester, England

Opportunities for Investors

Whether you’re looking to buy a home to live in and create lasting memories, or as an investment to secure your financial future, the current climate presents opportunities that should be considered.

For investors, the lower mortgage rates falling below 5% that have been introduced by some of the major high street lenders, offer the potential for higher profits and greater long-term financial gain. By acquiring properties at a lower cost in the current marketplace, you can position yourself for future success as the industry continues to grow.

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Invest with Rothmore Property

Rothmore Property offers exclusive Manchester properties and investment opportunities. As Manchester-based property specialists, we provide chances to invest in exciting off-plan developments and profitable buy-to-let properties, offering returns of up to 10% NET.

Speak to one of our dedicated property consultants, who will guide you through Manchester’s property market and help you make solid investment decisions that yield significant returns. Secure your financial future with Rothmore Property, your reliable partner in property investment.

I’m thinking of buying a property in Manchester. How will the drop in mortgage rates affect me?

Housing puzzle

The recent drop in mortgages is good news for potential home buyers in Manchester. With the decrease in mortgages, monthly payments are significantly reduced, making home ownership more affordable.

Moreover, a decrease in mortgages can significantly benefit Buy-to-Let investors in the Manchester market. Lower rates mean lower monthly costs, increasing the income potential from rental properties. This not only provides a greater return on investment but also offers a higher cash flow for property owners.

Furthermore, investing in the Manchester Buy-to-Let industry at this opportune moment can also present long-term benefits. The city’s thriving rental industry, with a high demand for properties, ensures a steady stream of tenants and a potentially higher rental yield. With Manchester’s growing economy and vibrant property market, it’s an ideal location for property investors looking to maximise their returns.

In summary, the current decrease in mortgage rates opens up promising opportunities for Buy-to-Let investors in the Manchester property space. By taking advantage of lower rates, you can enhance your purchasing power and potentially achieve higher returns through rental income. Speak to one of our dedicated property consultants who will help guide you through the exciting and dynamic Manchester property market and help grow your property investment portfolio.

As a first-time buyer, is this a good time to get a mortgage?

With major high street banks dropping mortgage rates across the board following a positive shift in inflationary data. The amount of interest a first time buyer will be required to pay has also fallen. Meaning that it has become more attractive and affordable than it has been over the months previously.

However, it is always important to carefully evaluate your personal financial situation and seek professional advice to ensure a well-informed decision. By doing so, you can embark on your home ownership journey with confidence and peace of mind.

Real estate agent or realtor signing mortgage agreement for new

Are fixed mortgages also decreasing?

Indeed, fixed mortgages have dropped for the first time since July, as reported by This Is Money. This drop can provide more stability and predictability for homeowners and property investors.

Applying for a mortgage involves understanding how your will mortgage work, finding a lender, comparing the rate of interest, filling out a mortgage application, and entering into a mortgage agreement. It is important to compare different mortgage options and ensure that you meet the eligibility criteria before making a decision.

fixed mortgage rates uk 2000-2023

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Exploring Remortgaging Opportunities

For homeowners, considering remortgaging is a practical option. Remortgaging involves switching your current mortgage to a different deal, either with your current lender or a different provider. It can be a smart move to consolidate debts, secure a better interest rate, or free up cash for big purchases.

To execute a successful remortgage plan, it’s advisable to seek the guidance of a financial broker. A broker can offer expert advice, helping you navigate through the various options available and prove invaluable in finding a mortgage that suits your financial needs.

It’s also important to remember that the mortgage market is regulated to protect consumers. This means that lenders need to ensure their products are suitable for customers’ needs and that they can afford the repayments.

Lastly, the housing market can change rapidly, particularly the interest rate, which can fluctuate significantly over time. By remortgaging, you may be able to take advantage of lower rates when they become available.

In conclusion, remortgaging can be a valuable financial strategy for many homeowners. However, as with any significant financial decision, it’s essential to seek professional advice and ensure you make the choice that best suits your circumstances.

Graph of how much mortgage rates have gone up

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Wrapping it Up

To sum up, although the ups and downs of mortgage rates can be intimidating, it’s crucial to grasp the dynamics of the market and take advantage of opportunities when they come. If you’re interested in Manchester’s property market, the current situation could be a valuable chance to achieve your property goals or enhance your investment portfolio.

We at Rothmore Property have made it our mission to guide our clients through every step of the buying process. Our expert consultants have a wealth of experience in new homes and are well versed in working with national and international buyers.

Whether you’re a first-time buyer looking for that dream home, or you’re a seasoned investor wanting another buy to let for your growing portfolio. It’s important you benefit from getting the best properties, advice and service in the market.

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This guide is intended solely for informational purposes and should not be considered as investment advice. For those in search of financial guidance, it is advisable to consult with a financial advisor authorised by the FCA, to receive regulated advice tailored to your investment choices.

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