What Are the Best Places in the UK to Invest in Property?

Another of the most up and coming areas in the UK for buy to let, Sheffield is a fantastic city to consider if you want to invest in low-priced property. With an average house price of £202,605 according to Zoopla, Sheffield comes just after Liverpool on the affordability scale.

As with other average house price rates, the price of properties in Sheffield gets lower depending on the property type you look at. For instance, the average cost of a one-bedroom flat in Sheffield stands at just £97,317 while the average for a two-bedroom house is £144,225. Again, the average costs of property in Sheffield highlight how the North of the country boasts some of the best places to buy in the UK.

The closer you get to the city centre of Sheffield, the cheaper property prices become. In Sheffield city centre, the average property price is just £108,581, while properties in the East of the city are also highly affordable. In the S2 postcode, for example, you can buy a one-bedroom flat for only £73,164. Investors looking into Sheffield property investment should avoid more suburban areas such as those in the S11 postcode, where the average house price is currently £318,009.

The vibrant and historic city of Newcastle is another of the best areas for buy to let in the UK, and a great choice if you want to know where to invest in property without breaking your budget. Zoopla area guide statistics for Newcastle reveal that the city’s average property price stands at £210,141 – just over the average in Liverpool and Sheffield.

Newcastle is rising in reputation as a top property investment city due to its popularity with a young population of tenants. Both students and young professionals are seeking properties in Newcastle, which is why the area has attracted more investment over recent years. One downside, however, is that property prices in Newcastle city centre aren’t as low as those in the city centre of other UK cities. The average price for a one-bedroom flat in the city centre of Newcastle is £120,221, while the average for a two-bedroom flat is £188,074.

Property investors who want to know where to invest in property in Newcastle for lower prices should look to postcodes such as NE4 in the West of the city. Here, one-bedroom flats have an average of just £75,717. It’s important to keep in mind, however, that you may be likely to benefit from higher levels of rental demand in the city centre, despite the higher prices.

Considered one of the best places to invest in property in the UK for 2019 and 2020, Manchester remains a firm favourite for buy to let investment. One of the reasons that Manchester stands out for its investment potential is the affordability of property prices in the city. While Manchester’s average of £232,118 is a little higher than the average property price in the city’s Northern neighbour, Liverpool, the city still offers great prices for such a prominent UK hotspot.

In Manchester city centre, the average price for a one-bedroom flat comes to around £182,166 according to Zoopla. However, with the city centre generating such high and ongoing levels of rental demand from desirable tenant groups, along with offering a range of fantastic developments, paying a slightly higher amount than you would in other Northern cities is justifiable. The Local Blackfriars development located in the city centre is a great example of this, priced from £180,000 but offering such a striking blend of grade listed architecture and modern designs.

In Salford, another of Manchester’s top areas for investments, the average price for a one-bedroom flat is £155,095, highlighting better affordability outside of the city centre. Areas in Manchester where prices are typically lower are those in more suburban areas such as the OL8 postcode where the average house price is £90,330. As with any property investment, however, you need to weigh up the benefits of low property prices with the risk of not getting the most out of your investment by attracting less demand.

Manchester offers very similar capital growth potential to Liverpool. With a twelve-month growth percentage of 5.14% and long-term regional growth of 24% by 2024, Manchester is a great area to look into if you want to find the best place to invest in property in the UK. While Manchester does share similar growth rates with Liverpool, The city’s rate of growth over the last five years actually exceeds that of Liverpool’s, boasting a percentage increase of 31.44%.

Manchester is another key player in the UK’s regeneration scene, with a number of expansive past and current redevelopment projects. Perhaps the most notable project in recent years is MediaCityUK – a billion-pound scheme which saw Salford Quays Docks be transformed into a vibrant hub for business and leisure. Home to a number of huge business names like the BBC and ITV, MediaCityUK has attracted a lot of interest to Manchester over recent years, boosting the demand for property and thus aiding house price growth. Future regeneration plans in store for the city include a new city centre neighbourhood, St Johns, which is expected to bring even further growth to Manchester as a whole. It’s clear that those seeking the best place to buy an investment property should not hesitate to explore Manchester investments further.

When analysing Zoopla house price statistics, Newcastle comes out on top as one of the best places to buy property if your focus lies with capital growth. The average property price in Newcastle has increased by 6.32% in the last twelve months, resulting in a value change of £12,878. This highlights the appeal of Newcastle as one of the top destinations for property investments.

When looking at future property growth predictions for the city, Newcastle’s capital growth prospects remain promising. Savills predictions for long-term growth reveal an expected increase of 19.9% in the North East of England. While this is an attractive rate, this is, however, lower than predictions for the North West. While Newcastle may also have had the best capital growth rates over a twelve-month period, when you look at Zoopla statistics over the last five years, Newcastle’s property price growth was lower than that of Liverpool’s at 19.90%. This is why if you’re looking for ideas on where to invest in property for the highest possible capital growth, you may want to weigh up your options before investing in Newcastle.

A city that’s definitely becoming one of the most prevalent property growth areas, UK investors should consider Birmingham as a hotspot for capital appreciation. If you want to know where to invest in property for high growth, but you don’t want to focus on the North of England for your investment, Birmingham is a good choice. Based in the West Midlands region, Birmingham has displayed property price growth of 5.54% over a period of twelve months.

Like all cities considered the best places to buy property, Birmingham has attracted attention from UK investors due to ongoing regeneration and demand from both students and young professionals. Birmingham also boasts high evidence of growth across the last five years with a value increase of 26.41%, which is higher than the growth seen in Liverpool and Newcastle during the same period. In regards to property price predictions, however, the West Midlands region is expected to grow by 18.2%, which is still a high amount but not as impressive as the North West’s 24% prediction.

When looking for the best place to invest, property in the UK’s second city is one to watch for rental yields as well as affordability and capital growth. The average rental yield for Manchester is just above that of Liverpool’s with a yield of 5.55%. In research by Property Data, it was revealed that certain Manchester postcodes are capable of generating yields that exceed this overall average for the city. The M14 postcode, for example, has an average yield of 8.4%, while the M50 postcode which is home to Salford Quays and MediaCityUK offers rental yields of 6.8% on average. This is highlighted with the current Salford Quays development, Bridgewater Wharf, which comes with 6% projected net yields.

Manchester is much like Liverpool in the fact that the city generates such a high demand for rental properties from both students and young professionals taking advantage of the fantastic business opportunities. Overall, this Northern city is certainly a prime contender in the hunt for the best place in the UK to invest in property.

With average rental yields of 4.61% according to Go Compare’s guide to the top cities to be a landlord, Sheffield offers a lot of potential for investors wondering where to invest in property. Sheffield has been gaining attention as one of the best places to invest in property in the UK in 2018, 2019 and 2020, and this is partly thanks to the growing rental yields in the city. Sheffield’s S1 postcode made the most recent Totally Money buy to let yields list due to its 7.83% yield. Covering parts of the city centre and inner-city Sheffield districts, S2 is a popular spot for renters, attracting demand from plenty of young professional tenants and boosting average rental costs for the area.

While Sheffield does have some high yields, however, there are certain areas that should be avoided. The S7 postcode in Sheffield made the Totally Money list of the 10 worst buy to let postcodes in the UK due to yields of just 2.19%. This highlights the importance of doing research when looking into the best places in UK to buy property, as even high-performing areas can have some negative attributes.

With the lowest average yield out of our top picks for UK investment areas, you might not automatically consider Edinburgh as a good choice for the best places in the uk to invest in property for rental returns. While the overall average rental yield for the Scottish capital may not be as impressive as those in other locations, the potential is still there when you explore certain parts of the city.

In Edinburgh city centre, Zoopla states the average purchase price of a one-bedroom flat as £187,225, while the average rent costs £991 pcm. This would mean that average yields for Edinburgh city centre come to around 6.35%. Evidence also suggests that rental costs in Edinburgh are rising rapidly, with a reported growth of 46.3% between 2010 and 2019. This could mean that property investments in Edinburgh will become more and more lucrative as time goes by, especially with the city’s popularity as a top student city. If you’re prepared to research certain locations and spend a little more than you typically would in more affordable cities like Liverpool, Edinburgh can make one of the best places to invest in property in the UK in 2020.

Slough is a large town in Berkshire, located in the South East of England and just a short train ride to London. The area’s proximity to the English capital makes Slough a great spot for investors wondering where to buy property in or near London without paying the capital’s huge prices.

Statistics show that around 46% of properties in Slough are let to renters from London, confirming the area’s status as a commuter town. The area is only continuing to develop thanks to ongoing regeneration projects such as ‘the Curve’, a recently developed cultural centre. While no exact rental yield average is clear for Slough, it’s estimated that rental yields could stand at around 5%, which is higher than the yields on offer in many parts of London but still lower than rental yields available elsewhere.

Cleveland is another area that’s being recognised for its buy to let potential. Cleveland is a former county which comprises parts of Yorkshire and Durham. Known for its rural scenery, the area’s name was said to have derived from the phrase ‘Cliff Land’.

While more rural areas like this may not spring to mind when it comes to buy to let, Cleveland is another UK spot that made the Totally Money rental yield list. With two postcodes listed, TS1 and TS3, Cleveland is able to generate yields of up to 8.50%. Close to Teeside University, both postcodes could be great spots for a student property investment, while Teeside boasts a fast-growing business scene which could help boost rental demand from young professionals.

Kilmarnock is yet another town which has attracted attention thanks to Totally Money’s list of the top 25 rental yield postcodes. Located in East Ayrshire, Kilmarnock is the 15th most populated place in Scotland. Alongside boasting a high population of around 46,350 people, Kilmarnock offers rental yields of 8.31% in the KA1 postcode. Like Falkirk, Kilmarnock is well connected to Glasgow. Therefore, the area could make a good place to invest in order to cater to a more diverse rental market of both young professionals and families/retirees.

While Newcastle has made our guide to the best places to invest in property in the UK, Sunderland is another Tyne and Wear city that deserves a mention in regards to its buy to let potential. Two of Sunderland’s postcodes, SR8 and SR5, have made the Totally Money yield list, offering rental yields of up to 7.32%. This makes Sunderland even more of an attractive prospect than Newcastle as of late. However, there are some areas which Newcastle has the upper hand, such as a larger student population and more famous nightlife scene. Even still, with such high yields, Sunderland should be one to watch for UK investors keen to expand their buy to let portfolio.