The Best Places to Invest in Property in the UK: A Quick Guide
If you want to invest in property you want to invest your money in the best place.
The best place to invest can mean different things to different property investors. The best places to invest in property include places with attractive property prices, strong rental yields, good prospects for price appreciation, good rental demand, growing populations and growing economies.
In this report we’ve studied a range of factors to help identify what could be some of the best places to invest in property in the UK.
Birmingham is a huge commercial centre with a local economy worth £27,900 million. Professional services like banking, finance and law are major employers. It’s strong in high tech. manufacturing too and new, emerging industries.
Birmingham City Council has an ambitious Our Future City Plan to grow the economy here. The HS2 railway will put Birmingham just 49 minutes from London and a new city district will be built around the HS2 station.
Birmingham is also one of the UK’s largest university cities with around 80,000 students at five universities.
- The average house price in Birmingham currently £199,494.
- Average gross yields in Birmingham up to 3.5%.
- Up to 14.2% price growth over the past 5 years.
Here’s more information on the best areas of Birmingham to invest in property.
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Bristol is one of the ten biggest cities in the UK. As well as a growing population, growing industries here include financial services, IT, creative and media, digital and tech. Bristol is one of the best cities in Europe for jobs growth too. Bristol is also a major student city with around 50,000 students.
There are plans to expand Bristol with a new city centre suburb of 11,000 homes at Temple Quarter, while a new garden suburb at Filton called Brabazon is underway.
Although Bristol house prices are well above average it offers sound yields and has shown good potential for price growth.
- The average house price in Bristol currently £305,471.
- Average gross yields in Bristol up to 4.3%.
- Up to 13.51% price growth over the past 5 years.
Here’s more information on the best areas of Bristol to invest in property.
Hull, correctly known as Kingston Upon Hull, has a population of around 260,000. Although it has something of an unfashionable image Hull is an enterprising city that attracts world leaders from many sectors, and is home to almost 10,000 businesses. Hull is becoming a global centre for the growing renewable energy sector too.
Hull generally is one of the cheapest places to invest in property in the UK and offers investors excellent value for money.
- The average house price in Hull currently £118,564.
- Average gross yields in Hull up to 4.2%.
- Up to 18.03% price growth over the past 5 years.
Here’s more information on the best areas of Hull to invest in property.
Leeds is one of the top five cities in England with 784,846 residents while the wider area has 3 million people.
Leeds is big in economic terms. It generates 5% of all UK economic output and has a larger economy than nine European countries. Leeds is a major UK centre for banking, finance and law plus precision manufacturing, food and drink, retail and healthcare. The digital, media and creative industries are growing fast.
Leeds is a massive student city with four main universities and a number of other HE colleges with 65,000 students overall.
Leeds has seen impressive price growth in recent years.
- The average house price in Leeds currently £210,315.
- Average gross yields in Leeds up to 5.4%.
- Up to 27.95% price growth over the past 5 years.
Here’s more information on the best areas of Leeds to invest in property.
Liverpool has a population of around 484,500 and the wider Merseyside area has 1.4m. Liverpool’s key industries include chemicals, food, business and financial services, retail, tourism and automotive.
Liverpool has benefitted from lots of regeneration including the waterfront, Albert Dock and Liverpool One. More is planned to make Liverpool an even better place to live, work and do business including Liverpool Waters, a 60 ha regeneration project with five new neighbourhoods.
Liverpool is also a major student city (around 50,000 students) creating a huge demand for student accommodation.
Liverpool scores highly on low property prices, strong yields and impressive past 5-year price growth.
- The average house price in Liverpool currently £155,508.
- Average gross yields in Liverpool up to 6.4%.
- Up to 23.47% price growth over the past 5 years.
Here’s more information on the best areas of Liverpool to invest in property.
While Luton doesn’t have the most fashionable image it has a thriving economy, a major airport and some of the cheapest property in south east of England.
Luton is also enjoying increasing popularity as a place for London commuters to live, thanks to great train services into London and good value prices. Luton has been named as London’s top commuter hotspot in the past.
Luton has enjoyed outstanding 5-year price property appreciation – some of the best in the whole country.
- The average house price in Luton currently £239,316.
- Average gross yields in Luton up to 3.2%.
- Up to 49.83% price growth over the past 5 years.
Here’s more information on the best areas of Luton to invest in property.
Manchester and Greater Manchester overall is one of the largest economic areas in the country with an economy worth £21,600 million.
Manchester is a centre for modern, emerging industries including professional services, digital, media and tech. which provides many well-paid jobs. Manchester has seen a huge amount of regeneration and development in recent years, helping to make Manchester an increasingly prominent European city.
The City of Manchester’s population is forecast to grow from 541,000 (2018) to a huge 625,000 in 2028.
Manchester is a major student city of around 100,000 students.
- The average house price in the City of Manchester is currently £205,067.
- Average gross yields in Manchester are up to 5.9%.
- Up to 24.9% price growth over the past 5 years.
Here’s more information on the best areas of Manchester to invest in property.
Middlesbrough on Teesside has an economy based on heavy industry and is a major port. The town has suffered some decline in the past but there are big plans for regeneration including a massive industrial redevelopment of the former steelworks site called Teesworks and a new Freeport.
There are lots of exciting plans to regenerate Middlesbrough town centre. These include the Centre Square high-quality office scheme, Albert North and Boho aimed at making Middlesbrough a centre for creative businesses.
Teesside University has expanded fast in recent years and has 19,000 students.
Middlesbrough is one of the best locations in the UK for low property prices and high letting yield.
- The average house price in Middlesbrough currently £122,736.
- Average gross yields in Middlesbrough up to 7.5%.
- Up to 5.05% price growth over the past 5 years.
Here’s more information on the best areas of Middlesbrough to invest in property.
Created as a new town in the 1960s Milton Keynes has grown fast ever since and it keeps on expanding. The population could reach almost 300,000 over the next decade.
Milton Keynes is a hotspot for business and jobs growth and scores highly on quality of life. Over the last decade, Milton Keynes has proved to be one of the best performing places in the UK for jobs growth, earnings and other indicators of economic success.
Milton Keynes has good value property prices compared to other towns and cities in the region.
- The average house price in Milton Keynes currently £267,299.
- Average gross yields in Milton Keynes up to 5%.
- Up to 12.49% price growth over the past 5 years.
Here’s more information on the best areas of Milton Keynes to invest in property.
Newcastle is very much the capital of the north-east with around 1.65 million people living there. Newcastle itself has a population of around 292,000.
Once a city of coal and shipyards the Newcastle economy has been transformed in recent years. The area’s largest employers now include the public sector, financial and professional services, construction, transport and automotive industries. Newcastle also has an emerging creative and digital sector.
Newcastle is a major student city (around 50,000 students) so good news for student property investors too.
- The average house price in Newcastle upon Tyne currently £169,913.
- Average gross yields in Newcastle upon Tyne up to 6.2%.
- Up to 13.37% price growth over the past 5 years.
Here’s more information on the best areas of Newcastle to invest in property.
Nottingham has an industrial past but today its main industries are future-orientated ones like financial and business services, logistics, advanced manufacturing, clean technology, life sciences and digital. It a major university city with 57,000 students.
There are some exciting regeneration plans in progress in Nottingham including a £2 billion development at Southside with new offices, apartments, shops and city-centre amenities.
Nottingham combines good value property prices and attractive yields.
- The average house price in Nottingham currently £160,594.
- Average gross yields in Nottingham up to 6.7%.
- Up to 14.03% price growth over the past 5 years.
Here’s more information on the best areas of Nottingham to invest in property.
Peterborough was a new town first created in the 60s to take the overspill from London and it has grown fast ever since. Peterborough is an employment hotspot with jobs in advanced engineering and manufacturing, agri-tech, food and drink, digital and creative, energy and environment and financial services.
Peterborough City Council says Peterborough is the country’s fifth fastest-growing city with a high demand for more accommodation.
Peterborough has excellent access to London by train (up to five trains hourly taking 50 minutes) and the A1(M) motorway.
- The average house price in Peterborough currently £199,116.
- Average gross yields in Peterborough up to 4.6%.
- Up to 15.5% price growth over the past 5 years.
Here’s more information on the best areas of Peterborough to invest in property.
Reading is at the heart of the M4 Corridor. Reading is a centre for IT, telecoms, tech. and digital businesses with many global corporations based in and around the area providing lots of high-value jobs. The Reading economy is worth approximately £7,800 million annually.
Reading has some of the best transport links in the country being right on the motorway network, within easy reach of Heathrow Airport and with frequent trains into London. The new Elizabeth Line (Crossrail) will put Reading within 50 minutes of the City of London.
- The average house price in Reading is currently £300,007.
- Average gross yields in Reading up to 4%.
- Up to 5.33% price growth over the past 5 years.
Here’s more information on the best areas of Reading to invest in property.
Sheffield has a population of 575,400 but official forecasts say it is likely to see huge population growth to 652,300 by 2039.
Sheffield is famous for being Steel City. While steel and engineering is still important key industries today include logistics and distribution, health and education, financial, legal and professional services and telecoms. Sheffield is also developing a reputation for advanced manufacturing, which could boost the economy here in the future.
- The average house price in Sheffield is currently £188,633.
- Average gross yields in Sheffield up to 6.6%.
- Up to 17.42% price growth over the past 5 years.
Here’s more information on the best areas of Sheffield to invest in property.
Slough’s great location by the M4, the Great Western mainline railway and Heathrow Airport make it a hotspot for industry and commerce. Slough’s economy is based on light manufacturing, logistics, services, telecoms and tech. The wider M4 Corridor area is known as the UK’s Silicon Valley. Slough Trading Estate is said to be the biggest business park in Europe with around 500 companies and 20,000 employees. Slough is also the most productive place in Britain.
Slough’s huge jobs market means the population of around 149,000 people has grown 15% over the last decade alone.
Slough has good value property compared to London and much of the southeast.
- The average house price in Slough currently £298,367.
- Average gross yields in Slough up to 3.7%.
- Up to 8.91% price growth over the past 5 years.
Here’s more information on the best areas of Slough to invest in property.
Stoke has a population of around 260,000 and is a city made up of six towns – Stoke, Hanley, Burslem, Tunstall, Longton and Fenton.
Stoke’s original industries were mining, steel and pottery but it is now a centre for light manufacturing and services. Stoke is also a university city with Staffordshire University and Keele University nearby.
Stoke is a cheap property hotspot, and it’s possible to invest in property here for around £40,000. It offers strong yields and has benefitted from excellent price growth in the past.
- The average house price in Stoke on Trent currently £122,010.
- Average gross yields in Stoke up to 7.4%.
- Up to 30.55% price growth over the past 5 years.
Here’s more information on the best areas of Stoke to invest in property.
Southampton, Portsmouth and South Hampshire form a major metropolitan area with around 1.5 million people. Southampton is very much a maritime city. Southampton is the UK’s second-largest container port, a major vehicle export centre, a ferry terminal and Europe’s largest cruise ship terminal. Other industries include oil refining, chemicals and the public sector. The local economy is worth £7,400 million a year.
Southampton ranks as one of the cheaper places to invest in property in the south of the UK with prices well under the national average.
- The average house price in Southampton is currently £212,527.
- Average gross yields in Southampton up to 5.5%.
- Up to 12.31% price growth over the past 5 years.
Here’s more information on the best areas of Southampton to invest in property.
Wolverhampton is amongst the top ten largest cities in England with around 251,000 people. City status in 2000 has helped to raise Wolverhampton’s profile and attract more investment and development to the city.
Wolverhampton has great accessibility being close to the motorway network, on the West Coast main railway line and with a tram link to Birmingham. Developments including a new transport interchange, office developments and city living are helping to regenerate and improve Wolverhampton. Wolverhampton is also a university city with the University of Wolverhampton.
Wolverhampton is a great value location for property investors, with average prices being around £100,000 under the national average.
- The average house price in Wolverhampton is currently £169,019.
- Average gross yields in Wolverhampton up to 5.1%.
- Up to 16.84% price growth over the past 5 years.
Here’s more information on the best areas of Wolverhampton to invest in property.
The 10 Best Places to Invest in Property (Average Prices)
The 10 Best Places to Invest in Property (Average Yields)
About Our Data
Note: Population estimates are based on information provided by Localstats. Current average asking prices are taken from HM Land Registry data and Zoopla. Buy-to-let yields by postcode are taken from Property.xyz. The Best 10 places sections refer only to locations included elsewhere in this report.