Manchester has always been a city in motion. From its industrial roots to its modern skyline of glass towers and cranes, it’s a place where the future seems to be constantly under construction. But behind that energy lies a question that’s shaping the city’s next chapter: should investors focus on affordable housing or stick with the tried-and-tested buy to let model?

The numbers paint a clear picture of a city on the rise. Average property prices now hover around £246,000, still comfortably below the UK average ,but growing faster than most regional markets. Prices have climbed by just over 5 per cent in the past year and are predicted to rise by as much as 29 per cent before the decade is out. For investors, that mix of affordability and momentum is hard to ignore.

Buy-to-let remains the headline act. Manchester’s rental yields sit at around 6 to 7 per cent, putting it near the top of the UK’s league table for returns. Roughly a third of residents rent privately, and the city’s booming population, driven by students, young professionals and growing creative industries, means demand is only getting stronger. Average rents have passed the £1,300 mark, up more than 8 per cent on last year. For landlords, it’s a dependable market with solid returns.

But this success story comes with its own complications. As more investors pile in, affordable housing has become harder to find. The same demand that pushes up rents and resale values also deepens the squeeze on those who live and work in the city. That’s why some investors are starting to look towards affordable housing developments as a way to balance returns with social impact. These projects often come with government support, long-term tenancy agreements and a steady stream of demand from housing associations, making them less glamorous but more resilient.

The choice, then, isn’t just financial. Buy to let plays to the market’s appetite for growth and flexibility, while affordable housing appeals to those taking a longer, steadier view. Both have their risks and rewards, but together they reveal a city that’s wrestling with what kind of growth it wants.

Manchester’s economy is still expanding, its skyline still reaching upward, and its regeneration projects still pulling in billions of pounds of investment. For investors, it’s not just about where to put their money, it’s about what kind of city they want to help build.