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The Best Places to Invest in Property in the UK

Dec 19, 2024
If you’re ready to become a landlord and looking for the biggest return on your investment, you’re in the right place. Our guide covers some of the best places to invest in property in the UK, including average rental yields, monthly rent and buy-to-let prices. 

What makes a location a good place to invest in property?

Several factors come into play when determining the best places to invest in property. These include:
 
• Rental demand and potential for capital growth – Higher rental demand offers better yields and capital growth potential
• Economic growth and job opportunities – A thriving economy and diverse job openings attract residents, increasing demand for rental properties
• Infrastructure development – Efficient transport links enhance a place’s appeal, especially among commuters
• Local amenities – Schools, shops, restaurants, libraries and sports facilities help a location stand out
 

What is rental yield?

Rental yield is the profit you make from renting out a property against the costs of buying and maintaining it. It’s always expressed as a percentage. 
 

5 of the best cities to invest in property

Below is our pick of the five cities in the UK to invest in property.

 

1. Glasgow

As Scotland’s most populated city and largest economy, Glasgow is a hotspot for property investors. It boasts a strong industrial foundation and a thriving local scene, with excellent amenities and events. It was among the first cities to receive the UNESCO ‘Capital of Culture’ title in 1990 and became known as ‘Scotland’s Silicon Valley’ following its university campus expansion. 
 
• Average rental yield: 7.95%
• Average monthly rent: £951
• Average cost of buy-to-let properties: £1143,617
 
 

2. Newcastle

Regularly ranked among the best places to invest in property in the UK, Newcastle boasts an increasing graduate retention rate and population. This northeastern powerhouse is considered one of the country’s best ‘start-up incubators’, offering various job opportunities to young entrepreneurs. The city also enjoys a rich cultural heritage and a diverse events calendar, making it popular among youths.
 
• Average rental yield: 7.45%
• Average monthly rent: £833
• Average cost of buy-to-let properties: £134,245

 

3. Liverpool

Merseyside’s crowning jewel is another great city to invest in property. Famous for being one of the UK’s most affordable cities, Liverpool benefits from great average rental returns. It’s also investing in developing and improving its spaces, like the Waterfront and Baltic Triangle areas. This will help attract more tourists, unlock more job opportunities and help the economy grow. 
 
• Average rental yield: 7.44%
• Average monthly rent: £801
• Average cost of buy-to-let properties: £129,172

 

4. Manchester

One of the UK’s biggest university cities, Manchester boasts great rental profits, making it among the best places to invest in property. Home value has increased by 13% over the last five years, and several regeneration projects are happening across the city. These include Spinningfields, MediaCityUK and Ancoats, where industrial spaces are being converted into residential and commercial units.  
 
• Average rental yield: 6.53%
• Average monthly rent: £1,070
• Average cost of buy-to-let properties: £196,603

 

5. Birmingham 

This West Midlands powerhouse has seen great regeneration and growth, with rental demand at an all-time high. The ‘Our Future City’ plan is set to transform the city by 2040 with new public spaces, transport links, job opportunities and more energy-efficient homes. Some of the city’s most popular areas, including Digbeth, Eastside, and Southside, are undergoing significant improvements.
 
• Average rental yield: 6%
• Average monthly rent: £934
• Average cost of buy-to-let properties: £183,628
 
Looking for your next investment opportunity? Explore our brand-new developments across the UK, including 2, 3, 4 and 5 bedroom homes. Find out more about our homebuying offers to help you move.
 
Contact our Sales Advisers today to learn more. 
 
 
 
 

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