As an overseas investor, it can be difficult to know the best places to invest in property in the UK. This in-depth guide breaks down the best locations for property investment in the UK, including top cities and regions.
Property is a great way to diversify your investment portfolio and assure a steady return on investment (ROI). Investing in property provides a sense of security compared to more volatile investments, like stocks, and they can provide a passive income through rental opportunities. For overseas investors, the UK property market is considered one of the most stable property markets to invest in, but this can be challenging to navigate if you’re unfamiliar with the UK. That’s why we’ve compiled this guide so you can identify the best place for property investment in the UK.
We’ll look at everything from places with the most significant potential for growth to factors like public transport and the job market. We’ll also consider how foreign investors can benefit from investing in property in the UK. Plus, we’ll tell you about some of Yield Investment’s exclusive social housing/supported living investment opportunities that could help you get a superior return on your investments.
By the end of this guide, you should feel confident about where to invest your money and comfortable about managing your property portfolio going forward. So let’s get started!
The Best Places to Buy Property in the UK in 2025
Here are some of the top buy-to-let locations in the UK and the key metrics to consider when choosing where to invest
| City | Average Price of Buy-to-Let Properties | Annual Rental Growth | Average Monthly Rent | Rental Yield |
| Sunderland | £83,842 | 9.4% | £626 | 8.96% |
| Aberdeen | £102,920 | 6.2% | £689 | 8.03% |
| Burnley | £84,869 | 10.9% | £566 | 8% |
| Hull | £98,617 | 10.1% | £612 | 7.45% |
| Newcastle | £134,245 | 6.6% | 3833 | 7.455 |
| Liverpool | £129,172 | 9.8% | £801 | 7.44% |
| Manchester | £196,603 | 11.1% | £1070 | 6.53% |
Sunderland
Average Property Price: £83,842
Annual Rental Growth: 9.4%
Average Monthly Rent: £626
Rental Yield: 8.96%
Sunderland, located in the North East of England, is the highest yield area in the UK. The average property price in Sunderland is £83,842, with an annual rental growth of 9.4%, making it one of the best places to buy property in England.
Sunderland is undergoing significant regeneration, with Sunderland City Council securing £20 million from the Levelling Up Fund to transform the city centre. The city is focusing on attracting investment in advanced manufacturing, technology, and renewable energy, creating new jobs and opportunities, which is attracting more people to the city for work and boosting the rental market.
Sunderland’s affordability compared to other major UK cities makes it an attractive option for investors. With average property prices significantly lower than the average nationally, investors can achieve higher rental yields and a quicker ROI. The affordability, coupled with rising rental demand, creates a compelling investment opportunity.
Aberdeen
Average Property Price: £102,920
Annual Rental Growth: 6.2%
Average Monthly Rent: £689
Rental Yield: 8.03%
Aberdeen, known as the ‘Granite City’ and the energy capital of Europe, presents a resilient opportunity for property investors.
The city is making significant strides in renewable energy, particularly offshore wind, as a leader in the energy transition. In 2024, Aberdeen was named the location for the UK’s first large-scale offshore wind manufacturing facility, attracting substantial investment and creating new high-skilled jobs.
Aberdeen’s rental market is supported by a growing demand for high-quality accommodation from young professionals and skilled workers. The city already has an abundance of quality rental properties, with more due to be completed in 2025 and 2026, making the area desirable for renters. The city is home to 30,000 students (around 15% of the population) attending Aberdeen and Robert Gordon University, which are constantly expanding, ensuring the demand for rental properties remains high.
Burnley
Average Property Price: £84,869
Annual Rental Growth: 10.9%
Average Monthly Rent: £566
Rental Yield: 8%
Burnley, a Lancashire town with a rich industrial heritage, is rapidly emerging as a hotspot for savvy property investors seeking high rental yields and promising capital growth.
Recent Office for National Statistics (ONS) data shows that Burnley’s employment rate has increased by 4.7% in the past year, which attracts a diverse range of professionals to the town, increasing the demand for rental properties. Burnley benefits from how close it is to the M65 corridor and the wider Lancashire region, facilitating access to larger markets and skilled labour pools.
The town is experiencing significant regeneration. The Pioneer Place development, a £23 million project, is set to deliver a new shopping and leisure complex in the heart of Burnley town centre. This development is expected to increase footfall, create new jobs, and improve the town’s appeal to both residents and visitors.
Hull
Average Property Price: £98,617
Annual Rental Growth: 10.1%
Average Monthly Rent: £612
Rental Yield: 7.45%
Hull in East Yorkshire, has emerged as a compelling investment opportunity for property investors seeking strong yields and affordable entry points into the UK property market. The city has had a substantial transformation since its time as the UK City of Culture in 2017, with continued regeneration efforts making it increasingly attractive to residents and investors.
The city’s ongoing investment in urban renewal projects has significantly amplified Hull’s appeal, with developments like the Fruit Market cultural quarter and the £80 million Albion Square project transforming the cityscape.
Hull offers an affordable entry point into the UK property market, with average property prices well below the national mean.The city experiences exceptionally high rental demand, driven by limited supply, which in turn drives up rental values. As a result, Hull delivers some of the highest yields in the Yorkshire and Humber region, thanks to its low property costs and rising rents.
Newcastle
Average Property Price: £134,245
Annual Rental Growth: 6.6%
Average Monthly Rent: £833
Rental Yield: 7.45%
Newcastle has established itself as a premier property investment destination in 2025, offering investors an impressive combination of affordability and strong returns. As the 8th largest city in the UK, its vibrant culture, world-class universities, and boosting economy have made it increasingly attractive to both domestic and international property investors seeking value outside the traditional Southern investment hotspots.
The city has significantly benefited from the North of Tyne Combined Authority’s £600 million devolution deal, with strategic investments already delivering tangible improvements to the urban landscape. The Stephenson Quarter, a £250 million mixed-use development, has revitalised a historic industrial area, creating a new business district attracting major employers, including accounting firms and tech companies. Since its completion, over 2,500 new jobs have been brought to the city centre.
Newcastle’s nightlife and cultural scene contribute significantly to its appeal. The city consistently ranks in the UK’s top 5 nightlife destinations, with an atmosphere that has particular appeal to young professionals, with 60% of under 35 households being rented and nearly 20% living in social housing.
Liverpool
Average Property Price: £129,172
Annual Rental Growth: 9.8%
Average Monthly Rent: £801
Rental Yield: 7.44%
Liverpool continues to cement its position as one of the UK’s property investment powerhouses in the North West in 2025. Over the past decade, the city’s remarkable transformation has created an environment where investors can benefit from a compelling combination of affordable property prices and exceptional rental returns.
The £5 billion Liverpool Waters regeneration scheme is fundamentally reshaping the city’s iconic waterfront, with five distinct neighbourhoods under development across 60 hectares of historic docklands. According to the Liverpool City Region Combined Authority, this project alone is expected to deliver over 17,000 new jobs and contribute £1.3 billion annually to the local economy once completed, substantially increasing property values and rental demand in surrounding areas.
The city’s tourism industry has reached record heights, with Liverpool welcoming 6 million staying visitors in 2024. This tourism boom has created prospects in the short-term rental market, with properties in central locations achieving high occupancy rates.
Liverpool’s regeneration zones offer particularly compelling opportunities for investors focused on capital appreciation potential. Properties in areas like Anfield have seen a 10% since 2022, outperforming the UK average of 9.8% during the same period.
Manchester
Average Property Price: £256,847
Annual Rental Growth: 14.8%
Average Monthly Rent: £977
Rental Yield: 6.21%
Manchester is one of the best buy-to-let locations in the UK due to its thriving economy and population growth. The city has seen a significant increase in house prices in recent years, making it an attractive option for investors. According to Zoopla’s annual per cent rental change report, the rental market in Manchester grew by 14.8% in 2022, indicating a strong demand for rental properties in the city.
In addition to its strong economic growth, Manchester has been recognised as one of Europe’s best places to live. In 2022, Manchester was ranked 28th in the world’s most liveable cities. This ranking was based on economic strength, sustainability and quality of life.
Manchester’s property market isn’t stopping anytime soon, as the city’s population is projected to increase to 630,000 in the next five years. This, coupled with the government’s ongoing investment in infrastructure and regeneration projects, makes Manchester a top location for property investors.
According to Zoopla’s average property price index, the average property price in Manchester is currently £256,847, making it about 2x more affordable than London, where the average property price is £532,000. JLL’s price growth forecast predicts that Manchester’s property prices will increase by 5.0% per annum by 2026, indicating a potential for solid capital growth for investors.
The Key to Making the Best Property Investment in the UK
Yield Investing’s social housing/supported living properties are located in the best areas in the UK for housing contract offers that can generate the best rental yields for our clients. These areas provide typical investment opportunities such as individual flats, freehold blocks, large HMOs/bedsits, and family rentals. Due to the potential for high yields and growth, these are popular property investment strategies with overseas clients.
With complete management systems and effective pricing for cash purchases, you can be confident that these properties will be a solid addition to your portfolio. You can contact us here to get started.
Where is the Best Property ROI in the UK?
The top 17 cities for rental yields in the UK are all in the North of England and Scotland, with the top 3 cities with the best ROI in the UK (using rental yield as a measure) including Sunderland (8.96%), Aberdeen (8.03%) and Burnley (8%). The region has the highest average yield in the UK at 7.65%. This shows that going into 2025, North East property investments offer the best return and strong rental yield.
What Type of Property is Most in Demand in the UK?
Terraced homes are the most in-demand property in the UK, popular among 41% of property investors. This is followed by semi-detached homes at a close 40%, while detached homes and flats/apartments account for 32% and 28% of demand, respectively. Surprisingly, while other home types fell in demand in the past year, flats saw a 1% increase in demand.
Is Buying Property in the UK a Good Investment?
Buying property in the UK can be a good investment – the property market is thriving, and several locations are experiencing a price spike, leading to high rental levels. Landlords can still see healthy investment returns, with an average rental yield of 5.6%, depending on the property’s location. However, naturally, there are risks, and it’s essential to do thorough research and seek professional advice before deciding. Remember that when selling, you may have to pay capital gains tax, which will reduce profits.
Up-and-Coming Places to Invest in UK Property in 2025 – 2026
Property investors often overlook the up-and-coming areas in the UK. Sure, the best areas for property investment will always feature cities like London and Manchester, but many other regions have fantastic potential. If you’re keen on the idea of looking at up-and-coming areas to invest in property, you should add these to your list!
Middlesborough
Average Property Price: £92,862
Annual Rental Growth: 10.7%
Average Monthly Rent: £613
Rental Yield: 7.92%
Located in the Northeast of England, Middlesbrough provides great investment potential. With its high affordability, significant rental demand and rich community/culture, it’s becoming increasingly popular among property investors looking to achieve high yields with the promise of future capital growth.
When it comes to yields, the large North Yorkshire town currently offers investors a gross annual yield of 7.92%, thanks to the optimum combination of low property prices and a steady median monthly rent of £613.
Bradford
Average Property Price: £118,267
Annual Rental Growth: 7%
Average Monthly Rent: £692
Rental Yield: 7.02%
Investing in property in Bradford, UK is a fantastic opportunity for rental income and capital growth. With affordable house prices compared to other cities in the UK, such as London and Manchester, it’s an attractive option for first-time buyers and investors.
According to Zoopla, the average property price in Bradford is around £118,267, significantly lower than the national average of £282,000. The city also saw annual rental growth of 3.8%, an annual increase of 7.0% from £652 in January 2024, indicating a high-yielding investment opportunity in the future.
Up-and-coming areas like Bradford and Middlesborough offer fantastic opportunities at lower entry points than established cities, making them prime spots for low-risk investments with secure returns.
What to Consider When Choosing the Best Place for Property Investment in the UK
When choosing where to invest in property in the UK, these are the main things you need to consider to ensure that your investment is well worth it.
Economic Stability
You’ll want to look at an area’s economic stability before investing. Any area with a steady stream of people entering and leaving is usually considered suitable for investment properties UK. Places with high population growth also indicate a healthy economy and job market, which are key factors when looking for the best areas to invest in your next property.
Local Market Conditions
As you have seen from our list of the best areas to invest in the UK, it’s also important to consider the local housing market in detail, including supply vs demand, average selling prices and rental yields. If you’re looking for guaranteed returns on your property investments, then it’s essential to research and ensure no hidden costs when buying a property in an area.
Political Stability
Finally, it’s worth investigating an area’s political stability, especially if you plan to invest long-term. Examining political stability can help you determine if you’re likely to face any disputes or policy changes and whether any potential changes could negatively affect your investments should they arise further down the line. Looking into local crime rates and access to public services can also give you a good overview of how good the area is for investments.
Investing in UK Property in 2025
While the best place for real estate investment in the UK can vary depending on your investment goals and risk profile, there are still plenty of excellent opportunities to generate solid returns in the UK real estate market. Thanks to the expansive economic growth and an abundance of desirable assets, the UK has become an attractive market for overseas investors looking for a steady and reliable return on investment.
With Yield Investing, you have access to an expert team with knowledge of the local area to help you identify the best places to buy government-backed social housing investments and supported living properties. You can also be sure to invest money that will provide safe and secure returns. Contact us now to get started.
