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Reece Pape is a property writer at RWinvest. Reece is passionate about keeping property investors updated on must-have information and housing market news, utilising the latest property market statistics and data.
As you’re probably aware, to succeed as a property investor – you have to buy property.
So, where to start?
Buy-to-let investment is one of the most popular strategies for investors at the moment, especially for those after a relatively safe, secure and profitable asset to put their money into.
Buy-to-let landlords generate returns through multiple streams, with rental income giving you a passive way of earning money while capital growth leads to investment properties rising in value over time.
Before splashing all your cash, though, it’s probably a good idea to get your head around where to invest.
In this guide to the best buy to let areas, we’ll offer some useful insight on the UK hotspots where you should consider investing your money. Keep reading to find out more.
Now, it would be really easy to list all of the top buy-to-let areas in England and Wales and just call it a day, but to truly understand property investment, you need to consider a few factors.
While some of these may seem quite obvious, they’re vital to getting the most out of property.
These metrics are:
Considering aspects like these can help paint a fuller picture of what you’re actually buying into, and we’ve found that the best areas to invest in typically maintain a healthy balance of each.
Hopefully, it’s clear then that for those seeking to be the very best at property investment – which everyone definitely should endeavour to be – understanding these metrics is an excellent way of finding out where to consider property investment in the UK.
The real question should be:
‘Why haven’t you already considered property investment?’
Throughout the turbulence of the last two years, the property market has remained resilient – with average UK house prices rising to over £300k in 2022, an all-time high according to Land Registry data.
The property market is still booming now, with 2023 probably being one of the best times to get involved.
Huge capital appreciation is expected over the coming years, making now more than ever a great time to invest and take advantage of affordable prices and enhanced returns.
Zoopla is reporting high growth in the rental market as well, with the latest rental market report showing a growth of 11.1% in March 2023. Demand for rental housing was 10% higher than in 2023, while the private housing supply has only risen by 1% since 2016.
This means that there is still a massive imbalance between demand and supply for rental properties, so quality new-build developments are thriving right now thanks to the premium features they include like outdoor spaces and onsite amenities such as gyms and laundries.
As you can see, buy-to-let investors are making substantial returns through both rental accommodation and capital appreciation.
So, without further ado here are the best buy-to-let areas in the UK for 2023.
Well-known in the property investment world, Manchester is consistently one of the best buy-to-let areas in the UK.
Topping our Best Buy-to-Let Areas in the UK for 2023 list, the city remains one of your best options.
As property prices in the entire North West region are predicted by Savills to increase by 11.7% across the next five years, there would be little surprise if Manchester was the one leading the way.
The city has gone through a significant transformation over the years, seeing a considerable increase in property prices. Land Registry data showed that Manchester homes had seen the highest price increase over 20 years, with a rise of 298%, from £59,348 to £235,437.
A solid competitor to London– perhaps sometimes even eclipsing it entirely – all signs seem to point to a rise in capital appreciation returns, rivalling its impressive increase between 2017 and 2018.
Manchester is one of the top destinations for young professionals – on account of an impressive global business and employment growth of 84% between 2002 and 2015.
Major regeneration schemes in the area like MediaCityUK and Spinningfields have brought massive growth to the city, with both employers and workers flocking to the city thanks to the fantastic opportunities.
Check out our in-depth look at the Best Buy-to-Let Areas in Manchester for more.
With comparatively low housing prices and massive rental demand, property investment in Liverpool is a huge market. The Land Registry reports that the average property price in the city is currently over £100k under the national average, proving the North-West city’s high affordability!
Regeneration efforts have helped the city blossom into an economic powerhouse – and a very profitable one at that.
Liverpool also boasts some of the most impressive investment properties for sale with high rental yields that are almost impossible to ignore.
And, since rental yields are such an integral part of any buy-to-let property investment, it’s not hard to see why Liverpool is deemed a top property hotspot.
Zoopla is reporting that Liverpool averages some of the highest rental yields in the North-West, with their data showing an average of 7.02% for Liverpool rental properties.
Some postcodes, like the city centre L1 area, have even higher rental yields thanks to the high demand for rental property close to the major employers and various attractions that the centre of Liverpool has to offer.
Combine this with the several top universities in the city, and renters of all classes are flocking to Liverpool to help make it one of the best buy-to-let areas in the UK for 2023.
The city has continuously been on an uphill trajectory, maintaining its top reputation throughout the pandemic and beyond thanks to the high affordability, lower-than-average rent and fantastic house price growth.
With costs in London continually on the rise, many are beginning to look beyond the capital city for new investment opportunities.
In particular, property investment in Luton has become a popular destination for many first-time buyers in the UK and is almost definitively one to keep your eye on – especially for those after capital gains with a lower entry point.
Boasting proximity to London and a strong reputation for solid transport links, Luton quickly becomes one of the most appealing investment alternatives.
With an equally impressive regeneration plan aiming to combat the town’s housing shortage thrown into the mix, it’s not hard to see why this reputation has come about.
According to the Land Registry, property prices in Luton increased by 6.6% in the last year, coming to a total average of around £284,625.
Considering the area, with average London property valued at £532,212 and the UK average house price currently estimated at £288,000, most would agree that you’re not going to find prices as low as this, especially if you’re looking at property close to London.
Comparing rent prices, London properties see numbers far higher than that in Luton, with the average at £1,384 per home.co.uk’s research. Again, this lower cost is undoubtedly a good incentive to purchase property here. In addition, property investors can count on a gross average rental yield of 4% in Luton.
These are just a few points that make Luton one of the best buy-to-let areas; London no doubt has some fierce competition.
With its flourishing economy, excellent price growth rates, and fantastic transport links, Slough property investment is another up-and-coming UK town that is proving to be quite the popular choice in 2023.
Another commuter town just outside London, Slough also enjoys a robust rental market with rising demand from professionals wanting to dive into both the Slough/London business scene – at a much more affordable price than that of the capital city.
Their regeneration and economic schemes are also particularly notable.
According to the latest data, the average property in Slough is expected to generate yields of around 3.7%, meaning your returns likely won’t be as high as in other areas, but you can target the lucrative London commuter belt to help keep tenant demand high.
These aspects make this another one to look out for. In due time, Slough could be another of the best buy-to-let areas in London’s proximity.
The most important thing to take away is that these are but a few of the buy-to-let best areas in 2023.
While these areas are considered some of the best buy-to-let areas in the UK for 2023, there are other areas which are worth mentioning as good areas to invest in.
As one of the largest cities in the South-East of England, Bristol is a thriving hub for students and young professionals. Property prices have been rising rapidly in the city for several years. Prices rose by 29.5% in the last five years, showing lots of potential for capital appreciation.
With major employers like Amazon and PwC having operations in or near the city, it is an ideal city for those seeking to target young professionals looking for work, and one of the best buy-to-let areas in the UK for 2023.
For those seeking to target the Manchester commuter belt without having to worry about the higher cost of inner-city property, Wigan is an ideal location to invest in.
Major regeneration schemes are transforming the town centre into a thriving modern hub, while house prices are far more affordable than those in Manchester. With an average price of £188,750, you can find property in Wigan for around £40,000 less than in Manchester, while benefiting from the great transport links to one of the best buy-to-let areas that Wigan offers.
As one of the largest cities in the Midlands, Birmingham is a centre of industry and commerce with a rich historical legacy behind it, making it one of the best cities for investors in 2023.
With a combination of rising house prices, high rental demand, key employers in the area and top-rated universities, it has everything you could want from a top buy-to-let area in the UK!
With property investment, it’s always essential to keep up to date with the latest developments.
The best buy-to-let areas in 2022, or equally the best buy-to-let areas in 2021, are not necessarily the best buy-to-let areas in the UK for 2023.
While stats are helpful, they shouldn’t be your only reason to invest in a specific city.
Most importantly, there isn’t one best place to invest in property.
You should consider this list as a good starting point while assessing the investment opportunities in each city and finding one that matches your goals.
Research every aspect of a potential investment area thoroughly before making any final decision – if you put the work in, then the best place to buy property, UK or not, will show its head.
If you’re looking at buying a rental property, you can’t go wrong with RWinvest.
Why invest in property with us?
We also have experience working with investors from around the globe, supplying them with all the information they need at every stage of the investment journey. And as of 2023, we now have over 1,000 five-star reviews.
If you still have some doubts, we also feature in-depth looks into the latest up-and-coming investment areas.
These guides explain why you should consider investing in these areas and cover everything from rental yields to the best places to invest.
If you’ve read enough for now, though, feel free to take a look at some of our latest properties to see if any are the right fit for you.
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