Best Places to Invest in UK Property in 2023

2023 is one of the best times to invest in UK property, but knowing the best place to invest is crucial to the success of your venture. If you’re wondering where to invest in the UK right now, be sure to keep reading our in-depth guide to the best places to invest in property in the UK. And if you’d like to receive exclusive details about the best new investment opportunities in the UK’s key areas, enter your details below for a friendly chat with one of our consultants.

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Looking for the best place to invest in property in the UK but have no idea where to look?

If you’re asking ‘where is the best place in the UK to buy property for investment?’, in our expert guide you’ll find the top 10 best areas to invest in property in 2023, along with some up and coming areas to be aware of.

We’ve determined this list by taking a data-driven approach – calculating the average property price, latest rental yields and capital growth predictions of the UK’s top 35 biggest cities and towns.

Our rankings also factor in other critical criteria, including urban regeneration potential, employment opportunities, infrastructure, rental demand, opportunities for property investors, and more.

The bottom line is that for those seeking a lucrative new opportunity, UK property investment is considered one of the best things to invest in right now.

With this in mind, you’re probably itching to find out where to invest in property.

So, let’s help you discover the best place to invest in property in the UK.

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1. Manchester

Average Property Price: £238,861

Average Rental Yield: 7.37% (gross)

Predicted Growth by 2027: 11.7%

Manchester has been one of the most popular property investment locations over the last five years, and for a good reason, too.

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.

A report from Zoopla found that the ratio between supply and demand in Manchester is causing rents to rise rapidly, making it’s rental growth the second-fastest in the UK behind London. This makes Manchester one of the best places to buy rental property in the UK right now.

It’s unsurprising then that Manchester has the fourth highest rental yields in the UK, with the third-highest capital growth when factoring in future predictions and past growth.

Want to know the best part?

Oxford Economics has estimated that Manchester will see the highest economic growth rate out of all major UK cities, meaning 2023 may be the perfect time to invest and take advantage of the city’s massive buy-to-let potential.

2. Liverpool

Average Property Price: £183,512

Average Rental Yield: 7.76%

Predicted Growth by 2027: 11.7%

Ranked second for capital growth in the UK, Liverpool offers the perfect blend of high property price growth, low property prices, and an in-demand private rented sector.

A mainstay on anyone’s list of the best and most affordable places to invest in property in the UK, Liverpool has had a similar meteoric rise to Manchester.

Previously a city suffering from economic decline, UK regeneration has helped transform Liverpool into the economic powerhouse you see today.

Now:

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 when it comes to house price growth.

According to Zoopla, Liverpool has beaten out some of the UK’s largest cities in terms of capital growth – seeing an increase of 14.1% on the year and 32% over the last five years.

Factoring in a young city centre population (75% are aged 17 to 29) and rental prices set to rise in 2023, private landlords can make a top purchase in Liverpool.

In an effort to tackle climate change, the city has also seen the introduction of eco-properties.

This is exactly what the name implies – developments purposely built with sustainability in mind and are often made with environmentally-friendly materials and low carbon technology.

3. Birmingham

Average Property Price: £239,016

Average Rental Yield: 7.18%

Predicted Growth by 2027: 8.9%

If Northern investment isn’t for you, then 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 an incredibly young population, with about 40% under 25 and 64% working age – 2% higher than the national average.

It gets better:

With significant regeneration efforts like the Big City Plan and HS2 set to create 80,000 new jobs, average rents will continue to rise, making Birmingham an excellent choice if you want to know where to buy property.

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

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4. Nottingham

Average Property Price: £193,780

Average Rental Yield: 8.01%

Predicted Growth by 2027: 8.9%

Home to the UK’s highest average rental yields and equipped with some impressive house price growth, Nottingham is one of the sleeper hits in the UK rental market.

In fact, its popularity is one of the main reasons Nottingham property investment ranks as one of the best places for property investment in the UK.

The Nottingham Post reports that demand for housing in Nottingham is still ‘very strong’ at the beginning of 2023, despite the cost of living crisis and rising mortgage interest rates.

With affordable house prices over £100k below the UK average, Nottingham is well-known for its excellent employment sector.

Nottingham features over 50 Business headquarters, including Boots and E.ON, plus the likes of Rolls Royce and Midlands Aerospace call the city home.

Even better:

13% of Nottingham’s population are students, making a student property investment a top choice in 2023.

5. Newcastle

Average Property Price: £198,347

Average Rental Yield: 7.05%

Predicted Growth by 2027: 11.7%

A top UK property investment location thanks to huge returns and low prices, Newcastle is a smart choice for property investors considering where to invest in 2023.

Boasting the fifth highest rental yields in the UK at 7.05%, 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 an annual increase in prices of over 12%. This combination helps to make the city one of the best places for UK property investment in 2023.

6. Leeds

Average Property Price: £247,824

Average Rental Yield: 6.64%

Predicted Growth by 2027: 11.7%

With an average property value of £247,824, 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.

Ranked as 8th for UK rental yields and 6th for capital growth, 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 largest UK centre for law, Leeds is overflowing with business opportunities in 2023.

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

Crucially:

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

With perks like these, it’d probably be rude not to give Leeds property investment a chance if you are wondering where to buy property in the UK in 2023.

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7. Glasgow

Average Property Price: £175,622

Average Rental Yield: 9.23%

Predicted Growth by 2027: 9.5%

Ranked 1st for rental yields but with sluggish capital growth, you might be scratching your head on why Glasgow property investment appears on this list.

Well, this Scottish city is a perfect example of why average stats don’t tell the whole story, with Glasgow offering a great investment opportunity in 2023.

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.

However, growth has been sluggish in recent years, so only consider Glasgow if you are looking to value rental income over capital appreciation.

8. Middlesbrough

Average Property Price: £146,696

Average Rental Yield: 5.47%

Predicted Growth by 2027: 11.7%

We thought we would throw a curveball in this ranking with a city you may not have thought about.

And you might be thinking:

‘5.47% yields?! That’s nothing special!’

And you’re right, it isn’t – but that’s not why Middlesbrough has made our list.

Instead, this North Yorkshire town boasts the second-highest capital growth in the UK, with prices rising by 14.9% over the last 12 months.

Now:

Investing just for capital growth is incredibly risky, as there is simply no way to guarantee that your house increases in value – nor are we suggesting you should do this without the income to back it up.

However, we thought it was well worth mentioning, with the potential to earn a mind-blowing return on your rental property – just make sure you choose an investment property with the average rent needed to sustain investment.

9. Preston

Average Property Price: £161,800

Average Rental Yield: 6.79%

Predicted Growth by 2027: 11.7%

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

Chief amongst these is Preston, which has some of the best property statistics globally – no, seriously, it does.

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 and has the second-highest rental yields and third-highest capital growth in the UK, with prices rising by 11.1% in the last 12 months.

It gets even better:

With massive regeneration efforts ongoing, including a £435 million infrastructure development, the future looks bright that Preston will continue to see rising demand and capital gains in 2023 and beyond.

10. Newport

Average Property Price: £243,359

Average Rental Yield: 5.77%

Predicted Growth by 2027: 11.1%

Cardiff is probably the first city to jump to mind whenever you think of property investment in Wales.

And while the capital is an excellent choice, a Welsh city you may not have considered is Newport.

Not to be confused with Newport in Shropshire or the Isle of Wight, Newport is the third-largest city in Wales and benefits from an excellent location just 12 minutes from Cardiff via the M14.

Almost £25k cheaper than property in Wales while offering the UK’s third-highest rental yield, Newport property investment may be the perfect choice for Welsh landlords in 2023.

The city was also rated as the third best place to live in the UK in 2019 by Adzuna, thanks to the job vacancies and salaries offered – a positive sign for any potential property investors.

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Best Places to Invest in Property 2023 For Capital Growth

According to our research, Manchester, Liverpool, and Leeds are the best places to invest in property UK for capital growth in 2023.

These cities have future growth predictions of 11.7% by 2027 while also offering high capital gains over the last 12 months, with prices rising between 12-20%.

Best Areas for Capital Growth

Best Rental Yields UK in 2023

Currently, the best places to invest in the UK for rental yields in 2023 are Liverpool, Manchester, Glasgow and Nottingham, which show average rental returns of over 7.37%. Don’t skip these cities if you’re looking for the best places to buy rental property in the UK.

Best Rental Yields in the UK for 2023

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, Glasgow and Nottingham may seem like the best places to buy property due to their high rental returns.

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

However, when looking where to buy property, it rarely ever works out as simple as this.

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.

So, what’s the bottom line?

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.

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.

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.

Whilst they may not necessarily be the best place to buy investment property today, the following towns and cities are worth keeping your 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?

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 that 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 home.co.uk, the average rent in London is 30% higher than that in Luton, standing on the average at £1,427.

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 2023.

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.

Based on Zoopla’s latest data in 2022, the average property in Slough is expected to generate yields of up to 4.23% – another one to look out for; Slough could very well be the next buy-to-let hotspot.

Hull Property Investment

Hull is another up-and-coming UK hotspot for property investment. This Yorkshire city boasts an average property price of just £138,595 and offers average rental yields of around 5%.

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.

These towns and cities have substantial ongoing regeneration efforts and could soon have the property stats needed to make this list in the near future.

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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 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:

  1. Residential investment – The typical form of UK property investment is where a buyer will purchase a home or apartment and rent to tenants.
  2. 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 2023.

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

About Our Data

The statistics used in this list were calculated by our writers and came from various sources.

Property price predictions were taken from Savills’ regional house price growth predictions for 2023-2027.

The average rental income was taken from Home.co.uk.

Average house prices were taken from the UK House Price Index.

Who Is RWinvest? Real Estate Investment UK Experts

If you’re looking to buy rental property, you can’t go wrong with RWinvest.

Why invest in property with us?

  • We’re an award-winning property investment company with over 18 years of industry experience.
  • We have properties available to invest in in the UK’s best places for buy to let such as Liverpool and Manchester.
  • We 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 1,200 five-star reviews.

So, if you want to invest with the best and secure a world-class off-plan investment, choose RWinvest for your next property investment.

Alternatively, if you want to learn a little more about investing, we have a whole host of informative guides and articles to help you get started – covering topics like:

Additionally, we also feature in-depth looks into the latest up-and-coming investment areas.

These guides break down just exactly why you should consider investing in these areas and cover everything from rental yields to the best places to invest.

If this piques your interest, then check out our beginner’s guide to Glasgow property investment, Wigan property investment in 2023, and our deep dive into Sheffield property investment.

John Brady

John Brady

John is a property writer here at RWinvest. With a close eye on property market news and updates, John writes detailed and informative articles on a range of topics that are helpful for anybody looking to invest in UK property.

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Disclaimer: This guide was updated in Q1 2023. Depending on when you read, data may be outdated and no longer accurate. Always do your own research to get the latest figures.

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