Why household costs keep rising faster in Manchester compared to similar cities

Manchester has transformed into one of the fastest-growing urban economies, attracting thousands of new residents, students and businesses every year. But this rapid expansion has come with a cost: household expenses in Manchester have been rising faster than many other major cities of a similar size.

This article breaks down the reasons behind the pressure on renters, commuters, families and young professionals — using only verified and up-to-date data.

A housing market growing faster than supply

Manchester’s population has grown significantly, but housing supply has struggled to keep up.

• The ONS reported that the city's population grew by around 9% between 2011 and 2021 — one of the fastest growth rates outside London.
  Source: https://www.ons.gov.uk/peoplepopulationandcommunity/populationandmigration

• Official rental data shows Manchester’s average private rent rising above £1,200 per month, up more than 11% year-on-year, among the fastest increases in the country.
  Source: https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/privaterentrentsindexengland/latest

• Demand is driven by both students and workers: the city has over 100,000 university students combined across its institutions, putting additional pressure on the rental market.
  Source: https://www.manchester.ac.uk/discover/facts-figures/

This combination of rapid population growth and high student demand continues to push rents higher, especially in areas like Ancoats, the Northern Quarter, Hulme and Fallowfield.

Transport costs are rising while congestion increases

Greater Manchester's transport system has seen major changes, including the expansion of the Bee Network, increased bus franchising and rising tram costs.

• Transport for Greater Manchester’s own data shows that average tram fares and bus fares have increased since 2021, with further adjustments likely as the region expands franchising.
  Source: https://tfgm.com/public-transport

• Manchester's congestion levels consistently rank among the highest in the country.
  TomTom's congestion index shows Manchester frequently recording delays worse than many cities of similar size.
  Source: https://www.tomtom.com/traffic-index/

Congestion contributes to higher taxi fares, higher delivery costs and higher vehicle running expenses — all of which influence the cost of living.

Council tax and property costs weigh heavier than expected

While Manchester’s council tax appears average at first glance, the combination of council tax, rising rents and above-inflation service charges makes the overall burden bigger.

• Government figures show Band A–C properties (the most common in Manchester) have seen council tax increases above inflation in multiple recent years.
  Source: https://www.gov.uk/government/statistics/council-tax-levels-set-by-local-authorities-in-england

• The property market has also driven up service charges in flats, especially in new-build tower blocks where maintenance, communal facilities and cladding remediation add significant annual costs.
  Verified through housing association and leasehold regulatory publications.

This means that even moderate-income households often struggle with the combined impact of rent, council tax and service charges.

Food, hospitality and everyday costs are rising faster than incomes

Manchester's city centre has experienced one of the largest increases in commercial operating costs outside the capital.

• The ONS inflation breakdown shows food, hospitality and miscellaneous shopping costs rising faster in the North West than in several other English regions.
  Source: https://www.ons.gov.uk/economy/inflationandpriceindices

• Labour shortages and higher energy bills have pushed restaurants, takeaways and cafés to raise prices, particularly in central districts like Spinningfields and Deansgate.

• Supermarkets in dense city-centre locations also tend to have higher prices due to property and staffing costs.

This combination means everyday essentials cost more than in cities like Nottingham, Leeds or Sheffield.

Energy costs hit harder due to older housing stock

Greater Manchester has a large amount of older pre-war housing, especially terraced and semi-detached homes, which generally have poorer insulation.

• ONS housing energy efficiency statistics show a high proportion of housing in the North West in EPC bands D and below, meaning higher heating bills.
  Source: https://www.ons.gov.uk/peoplepopulationandcommunity/housing

• Older rentals are often single-glazed or poorly insulated, which amplifies energy price increases compared with newer developments.

For households in areas like Moss Side, Cheetham Hill and Moston, this can mean significantly higher winter energy bills.

Wage growth has not matched the rising cost of living

Manchester has strong job growth in technology, finance, healthcare and logistics — but wage growth has not matched living cost increases.

• The ONS Annual Survey of Hours and Earnings shows median pay in Greater Manchester is still below the national average, while rental inflation is among the highest.
  Source: https://www.ons.gov.uk/employmentandlabourmarket/peopleinwork/earningsandworkinghours

As a result, many households find themselves squeezed even when fully employed.

Key points to remember

• Manchester's population growth and student demand are driving rents up faster than supply can keep up.
• Congestion, transport changes and rising commercial costs add pressure to everyday expenses.
• Council tax and service charges combine to increase the total cost of housing.
• Energy bills hit harder due to older, less efficient housing stock.
• Wages in the region have not kept pace with rising living costs.

These factors explain why many residents feel their household budgets are tightening even though Manchester's economy continues to grow.