which part of the UK is best for property investment?
August 18, 2025

If you're wondering which part of the UK currently offers the best opportunities for property investment, the short answer is:
The North of England (especially Manchester, Leeds, Liverpool), parts of the Midlands (notably Birmingham), and select Scottish cities like Edinburgh and Dundee are top contenders in 2025.
Why These Regions Stand Out
1. Manchester
Ongoing regeneration (Mayfield, St John’s, Victoria North) and strong job markets in tech, media, and education.
Rental yields between 6% and 7%, with projected price growth of ~5.5% in 2025.
2. Leeds
Booming due to digital/fintech growth, South Bank redevelopment, and a solid student/young professional base.
Rental yields around 6–6.5%, with price growth and affordability attracting investors.
3. Liverpool
Affordable entry prices and high yields, especially in areas like Baltic Triangle, with regeneration fueling demand.
Rental yields can reach 7–8.5% in top postcodes, supported by strong tourism and student needs.
4. Birmingham
Massive infrastructure projects (HS2, Commonwealth Games legacy, Paradise, Smithfield) positioned to drive growth.
Yields between 5.5–6.5%, with significant undersupply expected, making it a strong value proposition.
5. Scottish Cities: Edinburgh & Dundee
Edinburgh: High rental demand from students, professionals, and tourists; consistent rent growth; strong cultural appeal.
Dundee: One of the UK's highest yields (~8.4%), thanks to waterfront regeneration and affordability.
Other Noteworthy Hotspots
Derby, York, Wakefield, Huddersfield, Halifax, Barnsley – appealing for affordability, regeneration, and proximity to larger hubs.
Bristol, Cardiff – attractive for quality of life, strong economies, and steady growth: Bristol ~3–5%, Cardiff quite promising.
London: Still carries prestige and global appeal; forecasts suggest stronger growth (~6.5%) in the upcoming year—but it's expensive and yields are relatively low.
Summary Table
Region / City Why Invest? Typical Yield
Manchester Regeneration, jobs, strong growth 6–7%
Leeds South Bank, students, affordability ~6%
Liverpool High yields, regeneration (e.g., Baltic Triangle) 7–8.5% in hotspots
Birmingham HS2, legacy infrastructure, undersupply ~5.5–6.5%
Edinburgh (Scotland) Tourism, students, scarcity High, stable
Dundee (Scotland) High yield, waterfront projects ~8.4%
Secondary towns Lower entry cost, solid growth potential 5–7%+
London Prestige, recovery underway, expensive Lower yields
Final Thoughts
For strong rental income and solid growth: look north and midlands—Manchester, Leeds, Liverpool, Birmingham.
Best bang for buck in Scotland: Edinburgh and Dundee.
Lower-cost alternatives with promise: Derby, York, Wakefield, Halifax.
Luxury and long-term appeal: London—but expect lower yield.
Let me know if you'd like a deeper dive into any city, asset types (e.g. HMOs, BTR), or investment strategies!