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Best Places to Invest in UK Property in 2024

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    The UK Property Investment Market: Best Places to Invest

    The UK property market is globally renowned for its stability, but that doesn’t mean it stays the same year-to-year.

    As a property investor, it’s crucial to stay on top of the latest trends and predictions to ensure you’re investing in the most lucrative locations in the country. But how can you find the best places to invest in property in the UK for 2024?

    Using a data-driven approach, we’ve compiled this list by considering property prices, rental yields, and capital growth predictions of the UK’s biggest towns and cities.

    Our rankings also consider other key factors, such as urban regeneration potential, employment opportunities, infrastructure, rental demand, opportunities for property investors, and more.

    For those seeking a lucrative new opportunity, UK property investment is considered one of the best things to invest in right now.

    So, without further ado, here are our buy-to-let hotspot picks for the coming year!

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      Liverpool City

      1. Liverpool

      Average BTL Property Price: £129,172
      Average Rental Yield: 7.44%
      Predicted Growth by 2028: 20.2%

      A mainstay on anyone’s list of the best and most affordable places to invest in property in the UK, Liverpool has had a meteoric rise similar to Manchester’s. But with more affordable prices and a higher yield, Liverpool is our top pick for investing in 2024, and we’re not the only ones saying this. The Times also hailed Liverpool as the best place to invest in property this year.

      Previously a city suffering from economic decline, UK regeneration has helped transform Liverpool into the economic powerhouse you see today. Liverpool has become a significant player as a UK city, but average property prices remain well below the national average.

      According to Zoopla’s latest ranking of best buy-to-let cities, Liverpool has one of the highest average gross yields in the country for a buy-to-let property. It is one of the few major cities on Zoopla’s top-ten list, sure to make it attractive in the eyes of property investors.

      Liverpool can also offer property investors a wealth of diverse opportunities. For example, it’s a top UK destination for students, with three city centre universities and a population of around 70,000, according to LJMU.

      This combination of growth potential and desirability as an area of residence and currently low prices makes Liverpool a property investment oasis in the presently subdued UK property market.

      Liverpool property investment is a top choice for many – with the city being one of the most affordable on this list and essentially leading the charge regarding house price growth.

      According to the UK House Price Index, Liverpool has beaten out some of the UK’s largest cities in terms of capital growth. The area showed good growth in 2022, reaching a yearly change of 12.1% in December, and the average property price has grown by over £50,000 in just a few years since January 2020. The UK property market as a whole has been sluggish over the past year, with some cities registering negative growth. However, Liverpool has bucked this trend and avoided price falls, with a yearly growth of 1.6%.

      However, rents have not risen at the same rate as house prices, meaning the overall average rental yield in Liverpool is lower than in other cities. Nevertheless, investors are likely to see a high ROI combined with affordable prices, making it more likely you will see substantial returns.

      Factoring in a young city centre population (75% are aged 17 to 29) and rental prices set to rise in 2024, private landlords can make a top purchase in Liverpool.

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      2. Manchester

      Average BTL Property Price: £196,603
      Average Rental Yield: 6.53%
      Predicted Growth by 2028: 20.2%

      Manchester has been one of the most popular places to invest in property in the UK over the last five years and for a good reason.

      A report from Zoopla found that the ratio between supply and demand in Manchester is causing rents to rise rapidly, making its rental growth the second-fastest in the UK behind London – a whopping 14.8%.

      This is a testament to the popularity of Manchester among renters, but it also points to an extreme supply-demand imbalance in the city.

      The city has a substantial student population and an above-average graduate retention rate, meaning there’s also a large potential pool of young professional renters to target.

      Voted the UK’s best place to live by the Global Liveability Survey, the Manchester property investment market is filled with world-class investment opportunities and unrivalled market demand.

      Oxford Economics cites Manchester as a “major city region” driving UK growth and prosperity, meaning 2024 may be the perfect time to invest and take advantage of the city’s massive buy-to-let potential.

      Prices skyrocketed during 2022, hitting a yearly change of 12.1%, per Land Registry data. The UK property market was generally subdued during 2023.

      However, Manchester’s growth remained resilient until the end of 2023, seeing an average property price of £240,485 – a rise of 5.6% compared to the previous year.

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        Glasgow

        3. Glasgow

        Average BTL Property Price: £143,617
        Average Rental Yield: 7.95%
        Predicted Growth by 2028: 20.2%

        Glasgow is another major city that ranks highly for average rental yields in the UK.

        Glasgow property investment offers a great investment opportunity in 2024. Boasting the largest economy in Scotland and the fourth-highest in the UK, Glasgow has a rapidly expanding population of young professionals and students – with over 60,000 of the latter.

        The future also looks bright for Glasgow with expansions to its transport links, including a “game-changer” metro system to accompany the subway that loops around the city. Combine this with affordable prices and high rental costs, and you can find surprisingly high rental yields in Glasgow.

        Since 2020, the average price of properties in Glasgow has grown by more than £40,000. While growth has been sluggish recently, house prices in Glasgow have risen by 1.4% compared to last year, and the future looks bright for Scotland’s house prices. However, be aware that the legislation surrounding property acquisition in Scotland differs from that of England and Wales, and a rent cap was introduced in Scotland, making it less attractive for buy-to-let investment.

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        Newcastle

        4. Newcastle

        Average BTL Property Price: £134,245
        Average Rental Yield: 7.45%
        Predicted Growth by 2028: 21.4%

        A top UK property investment location thanks to significant returns and low prices, Newcastle is a smart choice for investors considering where to invest in 2024.

        Boasting some of the highest rental yields in the UK, Newcastle offers a bustling student population with excellent employment opportunities.

        Home to around 50,000 students at the University of Newcastle and Northumbria University collectively, plus the UK’s most prominent modern business park, the income potential is fantastic with Newcastle property investment.

        The city also boasts solid capital growth, with a five-year price increase of over 23%. While Newcastle previously struggled to achieve strong growth, this turned around in 2021, and ever since, the city has seen prices rise steadily.

        This combination helps to make the city one of the best places for UK property investment in 2024.

        However, with a slightly higher average property price, it could be more rewarding to pursue areas with more affordability and similar yields (such as Liverpool).

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        Preston

        5. Preston

        Average BTL Property Price: £136,148
        Average Rental Yield: 6.91%
        Predicted Growth by 2028: 20.2%

        It’s easy to fall into the trap of focusing on the UK’s largest cities for a rental investment, but dig a little below the surface, and you’ll find some absolute property gems.

        This city in Northern England may not get the attention of London, Liverpool, or Manchester, but its underlying stats suggest it should rank amongst them as one of the best places to invest in property in the UK.

        The city boasts highly affordable property with some of the highest rental yields in the UK, with the average house price in Preston being over £100,000 lower than the national average, per Land Registry data.

        The future looks bright, with massive regeneration efforts ongoing, including £435 million in infrastructure development. Preston will continue to see rising demand and capital gains in 2024 and beyond.

        Preston was previously identified as a top ten student property hotspot by mortgage lender Paragon Bank.

        When it comes to capital appreciation, Preston may have lagged behind in the past, but there have been signs of good potential in recent years. Preston property continued to grow in value this year, and the average price has risen by £40,000 since 2020. According to Savills, The North West region is likely to experience one of the highest capital value appreciations in the UK.

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          Birmingham

          6. Birmingham

          Average BTL Property Price: £183,628
          Average Rental Yield: 6.10%
          Predicted Growth by 2028: 20.2%

          If Northern investment isn’t for you, Birmingham is likely right up your street when considering some of the best places to invest in the UK.

          Credited as the UK’s second city, Birmingham is located in the West Midlands and has all the characteristics needed to provide some solid property investment opportunities.

          The city also has a relatively young population, about 40% under 25 and 64% working age – 2% higher than the national average.

          Zoopla reported last year that Birmingham had one of the steepest rental growths in the country, hitting 11.6%. With significant regeneration efforts like the Big City Plan, average rents will continue to rise, making Birmingham an excellent choice if you want to know where to buy property.

          The city has also seen considerable growth over the past few years, helping to make it one of the best places to invest in property in the UK for 2024. Birmingham has experienced modest price growth in the past year while many other cities saw prices fall. Since 2020, Birmingham’s average house price has risen by over £40,000.

          However, Birmingham is pricier than many areas on this list, and cheaper property can be found more readily in the North of England compared to the Midlands.

          To learn more, take a look at our Birmingham property investment guide.

          Leeds river view

          7. Leeds

          Average BTL Property Price: £174,269
          Average Rental Yield: 6.67%
          Predicted Growth by 2028: 20.2%

          Leeds is a bit pricier than other places on this list, but don’t be fooled – this Yorkshire city is well worth its entry price.

          Rental properties have seen massive demand in Leeds thanks to its incredible employment opportunities.

          Boasting the second-largest banking and finance sector in the UK and acting as the UK’s largest centre for law, Leeds is overflowing with business opportunities in 2024.

          Institutions and organisations like Leeds Teaching Hospitals NHS Trust, Jet2, First Direct and Channel 4 all call the city home, which has since attracted thousands of aspiring young professionals.

          It’s also a popular student destination, boasting four major universities – the University of Leeds, Leeds Trinity College, Leeds City College, and Leeds Art University.

          Leeds is also set for historical growth from regeneration efforts, with the ongoing South Bank Leeds project set to double the city centre’s size by creating 35,000 new jobs and 8,000 new homes.

          Thanks to the great employment opportunities and regeneration efforts, Leeds has seen house prices rise substantially, with over £50,000 added to the average property price since 2020.

          It may be worth giving Leeds property investment a chance if you are wondering where to buy property in the UK in 2024.

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            8. Southampton

            Average BTL Property Price: £212,118
            Average Rental Yield: 6.34%
            Predicted Growth by 2028: 16.7%

            As a general rule in the current UK property market landscape, the North of England can offer more affordable property prices, higher rental yields, and more promising capital growth forecasts than the South.

            However, there are some exceptions, so if you have your heart set on a buy-to-let investment in the South, Southampton could be the way to go.

            Although this city is on the smaller side, it seems to punch above its weight when it comes to the buy-to-let market. Due to high demand and potential rental income, Southampton’s rental yields are surprisingly high, with an average gross rental yield of 6.34%.

            It’s worth noting that Southampton’s average house price is lower than the national average. However, property investors willing to look beyond the South will still find better value property in the North, as Southampton’s average property price is comparatively much higher than the other entries in this ranking.

            The capital growth forecast for the region is also less sunny, coming in at 16.7%, while northern areas are predicted to reach over 20% growth by 2028.

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              UK Property Search

              Best Places to Invest in Property 2024 For Capital Growth

              According to Savills Residential Forecast, the best places to invest in property in the UK for capital growth are Wales, Scotland, and the North of England. They predict that all of these areas will experience average growth of over 20% by 2028.

               

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                Best Rental Yields UK in 2024

                Currently, the best places to invest in the UK for rental yields in 2024 are those in the North of England and Scotland. A rental yield over 7% is considered a very high yield and this can be found in cities such as Manchester, Glasgow and Liverpool. Don’t skip these cities if you’re looking for the best places to buy rental property in the UK.

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                The Gateway Liverpool

                What is the Best Place to Invest in Property UK?

                So, where exactly is the best place to buy property in the UK?

                The boring answer is that it entirely depends on your goals and budget.

                For instance, looking entirely at income, Manchester, Newcastle, and Leeds may seem like the best places to buy property due to the high rental returns achieved in these cities.

                On the other hand, if you’re thinking of long-term capital growth and high yields, Manchester and Liverpool would be your best bet.

                However, it rarely works out as simple as this when looking where to buy property.
                The reality is that you aren’t just investing in the average stats of a city.

                Instead, you will be investing in a specific investment property that can offer completely different returns than a city-wide average.

                This is why we also considered other contributing factors in our rankings, like rental demand, affordability, and future regeneration. These are all vital to consider for the future success of your investment property.

                While stats are helpful, they shouldn’t be your only reason to invest in a specific city.
                Most importantly, there isn’t only one best place to invest in property.

                Consider this list 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.

                While we believe Manchester and Liverpool have the right combination of statistics and history to appeal to most investors’ goals, it’s important to do your own research and come to your own conclusions about where the best place to invest in UK property is for you.

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                Best Up and Coming Locations to Buy Property in the UK

                Like most things, investment works best when you have one eye toward the future.

                While there may be better places to buy investment property today, the following towns and cities are worth keeping an eye on.

                Their stats are not yet on the level of the ten mentioned in this guide to the best places to invest, but the potential for growth and upcoming regeneration means they could very well be on their way to overtaking the top contenders in the coming years.

                After all, who knows what tomorrow will bring? We think these areas of the UK have the potential to crack the top ten and become some of the best places to invest in UK property in the coming years.

                Luton Property Investment

                Ideal for those looking for a London commuter property outside of the capital, Luton is currently a popular destination for many first-time buyers in the UK and is definitively one to keep your eye on – especially for those investors looking for decent capital gains with a lower entry point.

                With a solid regeneration plan in place, the town is looking to combat its housing shortage by building new homes to meet demand.

                According to housesforsaletorent.co.uk, the average rent in London is £4,115 per month, while Luton comes in at £1,161.

                Slough Property Investment

                With a thriving economy, excellent growth rates, and fantastic transport links, Slough is an up-and-coming UK town growing more popular in 2024.

                Another commuter town just outside London, Slough also enjoys a robust rental market due to demand from professionals wanting the Slough and London business scenes at a much more affordable price than the capital city.

                The regeneration and economic schemes in place are also eye-catching.

                Hull Property Investment

                Hull is another up-and-coming UK hotspot for property investment. This Yorkshire city boasts an average property price of just £138,031 and offers an average rental yield of 7.03%, according to Zoopla.

                After being named 2017’s Capital of Culture, over £1.5 billion worth of investment has been poured into the city over the past eight years.

                Wigan Property Investment

                Located in Greater Manchester, Wigan is an under-the-radar town that holds a lot of potential for property investment.

                With its great positioning on the Manchester commuter belt and millions worth of regeneration coming into the town, Wigan also has a very affordable average property price of only £185,039, meaning you can target those commuting to Manchester for a far cheaper price.

                These towns and cities have substantial ongoing regeneration efforts and could soon have the property stats needed to be some of the best places to invest in property in the UK in the near future.

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                  Real,Estate

                  Choosing The Right Property Investment Strategy

                  So, now you know where to invest, how should you go about actually investing?

                  It’s all well and good knowing the best places to invest in UK property, but it could all be for nothing if you don’t choose the right strategy.

                  So, what is the best property investment strategy?

                  Well, if you’re looking at buy-to-let, the top strategies currently are:

                  • Residential investment – The typical form of UK property investment is where a buyer will purchase a home or apartment and rent to tenants.
                  • Student property investment – Similar to residential buy-to-let, except that student investors will only rent to student tenants. They can do so through purpose-built student accommodations or HMOs.

                  But which one is better?

                  This will entirely depend on your goals, with residential property offering higher capital growth while student investments are better for income-focused buyers.

                  You can learn more about this by reading our list of the top 10 best property investment UK strategies in 2024.

                  Alternatively, take a look at our guide covering the best property investment tips if you want to know more about investing.

                  About Our Data

                  Property price predictions were taken from Savills’ regional house price growth predictions for 2024-2028.

                  The average rental income was taken from Zoopla and housesforsaletorent.co.uk

                  Average house prices and rental yields were taken from Zoopla and the UK House Price Index, and past growth was calculated using their data.

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                  Author

                  Dale Barham

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                  Dale is a property news and onsite content writer at RWinvest.

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