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The 10 Best Places to Invest in Property in the UK in 2025
Property investment continues to be one of the most popular strategies for building long-term wealth in the UK. With average rental yields ranging between 4.51% and 6.22%, choosing the right location is crucial for maximising returns.
According to the latest analysis from Joseph Mews, the best property investment hotspots for 2025 are thriving cities and regions undergoing major regeneration, economic growth, and infrastructure development. These areas are attracting professionals, students, and businesses, creating strong rental demand and long-term capital appreciation opportunities.
What Makes a Location a Good Investment?
When deciding where to invest, consider the following factors:
- Economic Growth & Job Opportunities: A strong local economy attracts residents and tenants.
- Infrastructure & Connectivity: Good transport links and urban regeneration projects boost property values.
- Rental Demand & Capital Growth: High tenant demand ensures steady income and appreciation potential.
- Amenities & Lifestyle: Access to schools, cultural activities, and green spaces makes locations more desirable.
Where Are the Best Places to Invest in Property in 2025?
Based on current data and market trends, here are the top 10 UK cities for property investment in 2025:
- Birmingham
A major hub in the West Midlands, Birmingham continues to grow thanks to significant regeneration projects, including Eastside, Southside, and Digbeth. The city is also benefiting from HS2 connectivity.
Average property price: £228,000 | Average rent: £990 | Yield: 5.21% | Growth forecast (2024-2028): 19.9% - Derby
Positioned between the North and South, Derby is seeing rapid regeneration. Its young population and strong graduate retention drive demand.
Average property price: £199,000 | Average rent: £748 | Yield: 4.51% | Growth forecast: 22.8% - Leeds
Part of the Northern Powerhouse, Leeds is transforming with developments like the South Bank project. The city’s strong job market attracts professionals and students alike.
Average property price: £234,000 | Average rent: £1,095 | Yield: 5.61% | Growth forecast: 18.8% - Bradford
With City of Culture 2025 status and major regeneration projects, Bradford is emerging as a high-growth location.
Average property price: £175,000 | Average rent: £679 | Yield: 4.65% | Growth forecast: 28.2% - Manchester
Manchester continues to lead as a property hotspot with large-scale regeneration and one of the UK’s strongest rental markets.
Average property price: £234,000 | Average rent: £1,214 | Yield: 6.22% | Growth forecast: 29.3% - Sheffield
A growing student city with £480 million invested in retail regeneration and major job growth expected.
Average property price: £214,000 | Average rent: £839 | Yield: 4.7% | Growth forecast: 28.2% - Liverpool
Liverpool’s cultural appeal, affordability, and business revival make it a strong performer for investors.
Average property price: £175,000 | Average rent: £776 | Yield: 5.32% | Growth forecast: 28.8% - Newcastle
A tech-friendly city with strong job prospects and affordable property prices.
Average property price: £193,000 | Average rent: £986 | Yield: 6.13% | Growth forecast: 25.2% - Leicester
Major infrastructure projects like the Waterside regeneration are boosting Leicester’s property market.
Average property price: £229,000 | Average rent: £915 | Yield: 4.79% | Growth forecast: 22.8% - Nottingham
Nottingham’s strong rental demand, affordability, and regeneration projects make it a solid investment choice.
Average property price: £192,000 | Average rent: £915 | Yield: 5.71% | Growth forecast: 22.8%
Comprison Table
| City ▲▼ | Price (£) ▲▼ | Rent (£) ▲▼ | Yield % ▲▼ | Growth % ▲▼ |
|---|---|---|---|---|
| Birmingham | £228,000 | £990 | 5.21% | 19.9% |
| Derby | £199,000 | £748 | 4.51% | 22.8% |
| Leeds | £234,000 | £1,095 | 5.61% | 18.8% |
| Bradford | £175,000 | £679 | 4.65% | 28.2% |
| Manchester | £234,000 | £1,214 | 6.22% | 29.3% |
| Sheffield | £214,000 | £839 | 4.70% | 28.2% |
| Liverpool | £175,000 | £776 | 5.32% | 28.8% |
| Newcastle | £193,000 | £986 | 6.13% | 25.2% |
| Leicester | £229,000 | £915 | 4.79% | 22.8% |
| Nottingham | £192,000 | £915 | 5.71% | 22.8% |
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Is It Still Worth Investing in UK Property?
Yes – the UK property market remains strong, particularly in cities undergoing regeneration and economic growth. High rental demand, combined with rising rents and capital appreciation, makes these locations highly attractive for investors in 2025.
While landlord regulations have increased, rental yields remain healthy, and the long-term outlook for property investment is positive. Areas like Manchester, Liverpool, Leeds, and Birmingham are expected to deliver some of the highest ROI in the coming years.
How We Can Help
Whether you're looking to invest in one of these top UK property hotspots or diversify your portfolio, we can help you secure the best finance options.
At Clifton Private Finance, we work with high street, specialist, and private lenders to find bespoke solutions tailored to your needs.
Speak to our expert mortgage brokers today – call us on 0117 332 5491 or request a call-back below:
