The Best Places to Invest in Property UK 2021/2022

Whether you’re an investor with decades of experience under your belt, or a beginner taking their very first steps, we all want to know where to invest in UK property. 

After a dramatic two years in the UK, you may be left feeling unsure about the next steps you should take in the property market. 

But don’t fear, we’re here to help. 

In this guide you will find: 

  • A data driven approach to find the best places to invest in property in UK 2021. 
  • Up and coming areas to buy property in the UK. 
  • Property Investment UK: How to Invest in 2021. 

And more! 

But enough talk, let’s get started. 

The Best Places to Invest in Property

Pick a city to read more about

Manchester
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Manchester



Liverpool
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Liverpool



Birmingham
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Birmingham



Nottingham
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Nottingham



Newcastle
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Newcastle



Edinburgh
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Edinburgh



Sheffield
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Sheffield



Glasgow
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Glasgow



Leicester
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Leicester



The Best Place to Buy Property UK: Our Rationale

The first thing we need to address before we start reeling off our UK cities is our rationale behind deciding exactly what makes these cities the best places to buy property in the UK. 

At the centre of our decisions is a data-driven approach. 

We use the latest official Land Registry data and Zoopla rental figures to calculate rental yields. 

We also use the latest Savills predictions released in July 2021 to provide a house price forecast for the next five years. 

To be strict and stay true to the meaning behind the best places to buy property, we are only including cities with lucrative rental yields above 5%. 

We also follow a set of criteria to help us evaluate a cities potential to determine if it’s the best property investment location in 2021. 

These criteria are: 

  • Affordability 
  • Rental Yields 
  • Tenant Demand 
  • Regeneration 
  • Career Opportunities 
  • Transport Links 
  • Amenities 

With this in mind, let’s get into our first UK city. 

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Manchester Manchester

Manchester

Manchester Average Price: £196,333

Average Rental Yield: 7.10%

Predicted Property Price Growth by 2025: 28.0%

Where else could we possibly start on this list if not Manchester?

This northern powerhouse located in the Northwest of England has surged in popularity amongst private landlords over recent decades, and for a good reason too.

The city has continuously been rated as arguably the best place to invest in property in the UK, with research from the Global Liveability Survey crowning Manchester as the best place to live in the UK.

It has also been credited as a top 10 global location for business start-ups, with huge levels of employment opportunities centred around the billion-pound projects of Spinningfields and MediaCityUK – the former dubbed the Canary Wharf of the North.

These employment opportunities have led to a marked increase in the population, with a recorded 30% rise over the last three decades.

Notably, for landlords, this population is incredibly young.

The average age in Manchester is just 33, with over 100,000 students in the city attracted to globally recognised universities like the University of Manchester and the University of Salford.

Young people are often the lifeblood of a city’s rental market, which makes Manchester investment demand even higher.

A report from Zoopla found that the current ratio between supply and demand for property in Manchester stands at an eye-watering 1:5, making it one of the most in-demand UK cities.

This has had a marked impact on the local property market.

Manchester Price Growth Manchester Price Growth

Manchester Property Price Growth 2016-21

 

Property prices have shot up in recent years, rising by a huge 31.30% since 2016. 

The last year, in particular, has been incredibly positive, with property prices as of May 2021 12.79% higher than 12 months prior. 

Manchester has often been credited as the king of capital growth. 

Over a 20-year period, Manchester has the highest growth rate out of every UK city on this list, rising by 326.09% since May 2001. 

Plus, when you factor in the absolutely enormous average yields of 7.10%, you have a recipe for success. 

If you want a slice of the Manchester market, it’s a good idea to focus on postcodes like M5, M38, and the city centre, as these are incredibly popular areas for young people and can offer yields upwards of 10% if you know where to look. 

You can invest in luxury Manchester real estate today, like the all-new Embankment Exchange, from as little as £50k with RWinvest.

Why Invest in Manchester?

  • Second largest regional economy outside of London.
  • Student population of 100,000 with 19,000 international students.
  • 51% graduate retention rate – second highest in the UK!
  • 59% of the population is under 35.
  • Property prices have increased by over 326% since 2001.
  • Top tier transport links with tram system and future HS2 expansion for Manchester Piccadilly.

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Liverpool Liverpool

Liverpool 

Liverpool Average Price: £158,173

Average Rental Yield: 5.92%

Predicted Property Price Growth by 2025: 28.0%

Another 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 the city into the economic powerhouse you see today. 

With projects like Liverpool ONE, the Knowledge Quarter, and the Baltic Triangle propelling the Merseyside city forward, Liverpool has quickly cemented itself as probably the best place to invest in property in 2021. 

Liverpool is the second-most affordable city on this list but has had one of the best 12 months for capital growth, with prices almost 20% higher in May 2021 than May 2020. 

Over the last few years, Liverpool has continuously been on an uphill trajectory, having gained the reputation as one of the best places to invest in property UK 2018, 2019, 2020 and now 2021. 

This significant growth has been caused by a considerable rise in population, with both students and young professionals flocking to the city for the business opportunities on offer. 

With three world-class universities, over 70,000 students live in Liverpool.  

Of these, a large bulk are international students, with one in five students being Chinese in the University of Liverpool. 

In fact, Liverpool is so young that around 75% of its city centre population is aged 17 to 29, making it the perfect place for investment. 

Liverpool Price Growth Liverpool Price Growth

Liverpool Property Prices 2020/21

 

Few cities can be described as iconic, but Liverpool breathes an unquestionable allure. 

World-renowned for its music scene thanks to the Beatles, Liverpool has a bustling tourism industry attracted to the likes of the Albert Dock, Tate Liverpool, the impressive Museum of Liverpool, and the stunning Three Graces. 

Its football heritage is also something not to scoff at, with the likes of Liverpool FC and Everton FC worth millions to the local economy. 

The latter team is set to bolster the iconic waterfront even further, with the introduction of a 52,000-seater stadium at the currently disused and run-down Bramley-Moore Dock. 

Regeneration is often at the forefront of the city, and with billion-pound projects like Liverpool Waters on the horizon, the city will continue to see property prices rise. 

While the average yields are less than 6%, Liverpool has been credited as having the best yielding postcode in the UK, with L1 available to get returns over 10% according to TotallyMoney. 

For this reason, investing in city centre postcodes is the ideal investment to get access to Liverpool’s thriving student and young professional sector. 

Due to Liverpool’s affordability, it is a fantastic area to grow a property portfolio, where you can buy multiple properties to maximise your income. 

Why Invest in Liverpool?

  • Major student destination with over 70,000 students.
  • Massive regeneration efforts are ongoing in the city, with a £5.5 billion Liverpool Waters project on the horizon.
  • Home to the highest yielding postcode in the UK, according to TotallyMoney.
  • Unique property opportunities, and home to the North West’s first eco-property.
  • Around 75% of the population is aged 17-27 in Liverpool city centre.
  • A top 10 global location for business start-ups alongside Manchester.

 

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Birmingham Birmingham

Birmingham 

Birmingham Average Price: £205,615 

Average Rental Yield: 5.26% 

Property Price Growth by 2025: 23.9% 

If Northern investment isn’t the one for you, then Birmingham is likely right up your street. 

Credited as the UK’s second city, Birmingham is located in the West Midlands and has all the characteristics needed to be called the best place to buy a house in the UK. 

As one of the best places to invest in property UK 2020, Birmingham has continued its growth into 2021. 

Birmingham is currently leading the way in rental demand, with reports finding a 25.2% rise in demand between the end of 2020 and Q1 2021. 

In fact, Rightmove found that there was a 51% increase in rental enquiries for the West Midlands city. 

Like Manchester, Birmingham also has an incredibly young population propelling its rental demand with about 40% of the population under 25, and 64% of working-age – 2% higher than the national average. 

Birmingham Population by Age Birmingham Population by Age

Birmingham Population by Age

 

The bulk of this population is also made up of students, with about 100,000 in the region across five popular universities: Aston, Newman University College, University of Birmingham, University College Birmingham, and Birmingham City. 

Many of these students and young people have been attracted to the employment opportunities on offer, with Birmingham featuring the largest business, professional, and financial hub outside of London. 

With companies like HSBC, Deutsche Bank, and PwC calling the city home, it’s unsurprising that the local rental market is thriving. 

And thriving it most certainly is. 

Property prices have increased by almost 30% since 2016, with an almost 200% rise since May 2001. 

Birmingham Price Growth Birmingham Price Growth

Birmingham Property Prices 2020/21

 

Despite the pressures of Covid-19 in 2020 and 2021, the local property market has performed incredibly well, with property prices currently 8.92% higher than a year prior. 

Although the rental returns on offer in the city are lower than others on this list, Birmingham is a compelling argument when you factor in future regeneration efforts. 

With the Big City Plan and the new HS2 line at Curzon Street Station on the horizon, the projects are set to create a combined total of 80,000 new jobs and will be worth multiple billions per year to the economy. 

If you want to know where to buy property, Birmingham is an excellent choice for 2021. 

The best areas to invest in property in Birmingham are the city centre, Erdington, and Digbeth, which offer more affordable property prices and a strong young population. 

Why Invest in Birmingham?

  • City leading the way in rental demand in 2021 with a 25.2% rise.
  • 40% of the population is under 25.
  • Has a student population of around 100,000 with a 41% graduate retention rate.
  • The third best city in the UK for attracting graduates with no prior links to the city.
  • Largest business, professional, and financial hub outside London.
  • Curzon Street Station set to reduce travel time to London to below 50 minutes.

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Nottingham Nottingham

Nottingham 

Nottingham Average Price: £167,843 

Average Rental Yield: 6.13% 

Predicted Property Price Growth by 2025: 23.9% 

Described as “fun, funky, and affordable” by the Sunday Times, Nottingham may be a surprise inclusion on this list for some. 

However, dig below the surface, and the underlying stats propelling Nottingham are some of the most exciting out of any UK cities on this list. 

Ranking as one of the best areas to invest in property thanks to a combination of low property prices and fairly strong rental figures, Nottingham can generate significant yields upwards of 6.13%. 

These stats are propelled by the city’s emerging economic backbone. 

With two major universities attracting over 43,300 university students, around 13% of the total population are students. 

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

There’s also the Queens Medical Centre to consider, which is one of the largest teaching hospitals in the UK and employs over 6,000 medical staff. 

Significantly for investors, the city is overflowing with transport links. 

Nottingham is credited as the central cog in the UK logistics network, with 77% of the population within a one hour drive thanks to the proximity of the M1 and A1. 

Additionally, the Nottingham Express Transit makes it incredibly easy to get to and from work, so any investors should target properties with proximity to tram services.  

It also has the best kebabs in the UK, so there’s that, too.

Nottingham Property Prices Nottingham Property Prices

Nottingham Property Price Growth Prediction

 

All this comes together to generate an impressive rental market, with a bright future ahead of it. 

As of May 2021, property prices are already 11.98% higher than a year ago, after increasing by 36.11% since 2016, and 217.96% since 2001. 

Factoring in future predictions for the region supplied by Savills, now seems like an excellent time to take the plunge. 

Savills has estimated a massive 9% rise in property prices in 2021, so if you want to invest anywhere, now would be a good time to invest. 

Why Invest in Nottingham?

  • Home to Queens Medical Centre – one of the largest UK teaching hospitals.
  • UNESCO City of Literature.
  • Top 10 Best Places to Live in 2020 according to the Sunday Times.
  • 30% of the population is aged 18-29, with 70% of the total population at working age.
  • Top performer for East Midlands job creation, with a 14.8% rise in the economy predicted by 2027.
  • Top transport network set to be expanded with new HS2 line.

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Newcastle Newcastle

Newcastle 

Newcastle Average Price: £169,089 

Average Rental Yield: 7.11% 

Predicted Property Price Growth by 2025: 23.9% 

As the eighth largest UK city, Newcastle has some of the lowest property prices and highest rental yields available in Europe, making it the ideal location for property portfolio landlords. 

With current rental yields averages of 7.11%, investors have a potential gem when they invest in Newcastle. 

Like many on this list, Newcastle is a considerable student city with around 50,000 students in the University of Newcastle and Northumbria University collectively. 

Previously a traditional industrial location with strong ties to coal mining and shipbuilding, the North East city has started to gain an emerging creative sector. 

One of the major employers is Cobalt Park, a modern business park which is the biggest in the UK. 

Its expanding population can be strongly linked to the city’s growing reputation as an excellent place to live. 

Not only is the nightlife and restaurant scene iconic, but a survey from Royal Mail found that Newcastle was the fourth-best city to live and work in the UK. 

Similarly, an amazing title was given to Newcastle by Rough Guides, who placed the city at the pinnacle as one of the best places in the world to visit. 

Factoring all these aspects, as well as an excellent Metro rail system across the city, and Newcastle seems like a dream location for investment. 

Newcastle Property Prices Newcastle Property Prices

Newcastle Property Prices 2016 – 2020

 

However, when it comes to capital growth, Newcastle has been rather disappointing. 

Between 2016 and 2021, prices have increased by just 10.92%, with only a 162.70% increase since 2001 – the lowest on this list. 

For this reason, if you are aiming for capital growth, Newcastle is likely not the location for you. 

Speaking of investing, though, if you care about rental yields, then the places to target are Jesmond, Heaton, Sandyford, and Shieldfield, which have affordable prices, high yields, and a strong population. 

Notably, for Jesmond and Heaton, an Article 4 Direction is in place. This means that if you want to create a shared house or an HMO, you will need planning permission – so do keep that in mind when considering your options. 

Why Invest in Newcastle?

  • Sky-high rental yields of 7.11%.
  • Best Place in the World to Visit, according to Rough Guides travel guide publisher.
  • Best leisure and cultural scene in the North East.
  • World-class Metro light rail system.
  • One of the best cities to live and work in, according to the Royal Mail survey.
  • Over 50,000 students across two excellent universities.

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Leeds Leeds

Leeds 

Leeds Average Price: £210,358 

Average Rental Yield: 6.13% 

Predicted Property Price Growth by 2025: 28.0% 

The first Yorkshire city on this, but (spoiler alert) not the last, Leeds has quickly cemented itself as a world-class property destination. 

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 2021. 

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

Known as a “brain gain city”, according to Centre for Cities Leeds, more students stay and get jobs after graduation in Leeds than anywhere except London and Manchester.  

Over 65,000 students currently study and live in Leeds, with 30% of Leeds’s 793,139 population aged between 15 and 34. 

This population has grown at seven times the rate of London in recent decades, with an overall population increase of 151%. 

Also factoring in a 34% rise in employment in Leeds in 2018, and you won’t be surprised to hear that the city is struggling to keep up with housing demand. 

Leeds Five Year Property Price Growth Leeds Five Year Property Price Growth

Data from Savills – July 2021 

 

From Savills’ data, Yorkshire has the joint-highest predicted growth rate in the UK. 

This is unsurprising given how much regeneration is ongoing in the area, particularly in Leeds. 

The headline project is undoubtedly South Bank Leeds, which is the revitalisation of over 250 hectares of land in the city centre. 

The equivalent of 350 football pitches, the scheme will double the size of the city centre and create around 35,000 new jobs and 8,000 new homes. 

If you want to invest now and take advantage of these considerable capital growth rates, the best places to invest in the city are the city centre, Headingley, Burley, and Hyde Park, which offer affordable prices and strong demand from students and young professionals. 

Why Invest in Leeds?

  • Second largest banking and financial sector.
  • Home to Jet2 HQ – world’s third fastest-growing airline.
  • Over 65,000 students call Leeds home.
  • Leeds City Centre is one of the UK’s biggest retail centres with the likes of Trinity Leeds shopping centre and Victoria Quarter.
  • The population has grown seven times faster than in London.
  • The city experienced a 34% rise in employment back in 2018.

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Edinburgh Edinburgh

Edinburgh 

Edinburgh Average Price: £300,450 

Average Rental Yield: 5.34% 

Predicted Property Price Growth by 2025: 24.4% 

Scotland’s second most populated city, Edinburgh has become an increasingly popular hotspot for any property investors looking to get into the Scottish market. 

The capital of Scotland and the seat of the Scottish Government, Edinburgh has rocketed in recent years thanks to a massive tourist destination. 

It has been credited as the UK’s second-largest tourist destination, with around 2.01 million visitors a year, approximately four times the residential population of 507,000. 

Speaking of the population, predictions have estimated that the population could rise to 583,000 in just 25 years, with the local council estimating that Edinburgh could be bigger than Glasgow by 2032. 

Due to this massive tourism sector, research from Hitachi Personal Finance and Airbnb found that the city is one of the most profitable places to own a holiday home.  

For that reason, Edinburgh property investment might be a smart idea for any private landlords to consider investing in holiday homes. 

Scotland Property Prices Scotland Property Prices

Scotland Property Prices

 

It’s not just the tourism market that is excelling, though. 

Thanks to four excellent universities, the largest global financial centre in the UK outside of London, and fantastic public transport including Lothian City Buses and Edinburgh Trams, the residential market is bustling in the city. 

Property prices in the city have increased by a staggering 31.84% since 2016, and nearly 10% in the last year alone.  

Rental income has also grown significantly, with a growth of 46.3% between 2010 and 2019. 

However, it’s time to address the elephant in the room.  

Edinburgh is expensive. 

The costliest area on this list, Edinburgh far exceeds prices seen in every major Scottish city. 

This can be a big issue for investors looking to get into the market, but there are ways around it. 

Namely, Edinburgh is home to a rather unique tenement flat, which are far more affordable for landlords looking to get into the market. 

A reminder, then, that research is key when looking at a city, as you will likely find far cheaper alternatives than what the average suggests. 

Why Invest in Edinburgh?

  • Set to be bigger than Glasgow by 2032.
  • Four universities with a student population of 70,000.
  • One of the most profitable places to own a holiday home.
  • Features the world’s largest arts festival.
  • Contains the largest global financial centre in the UK outside of London.
  • Regeneration plans to extend the tram system for more comprehensive coverage for professionals.

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Sheffield Sheffield

Sheffield 

Sheffield average price: £184,701 

Average Rental Yield: 5.72% 

Predicted Property Price Growth by 2025: 28.0% 

Previously known as Steel City thanks to its famous manufacturing industry, Sheffield has far more to offer investors and residents than its stainless steel. 

First and foremost, Sheffield is one of the region’s best places to live. 

Regeneration efforts like Heart of the City II are set to inject a further £470 million into the Yorkshire city, while West Bar Square will offer new offices, apartments, and public spaces for £175 million. 

Moreover, with a strong business backbone of booming tech and technology industries, including businesses like PlusNet, B.Braun Medical, Rolls Royce, Boeing, and McLaren, the city is unquestionably an exciting prospect for residents. 

Sheffield at sunset sheffield

 

Amenities wise, Sheffield has a lot going for it, too. 

Overflowing with performance venues, music festivals, and historical galleries like The Millenium Gallery, which is one of the most visited tourist attractions in the North, residents have plenty to see and do in Sheffield. 

Surprisingly, Sheffield is also one of the greenest cities in Britain, sitting on the doorstep of the Peak District National Park, and consisting of more trees than any other UK city. 

Notably for investors, there are plenty of parks in the city, which is a major selling point for tenants. 

If you’re looking to invest in the steel city, the top locations currently are the city centre, S2 postcode, and S5 postcode, which can generate upwards of 10% yields if you choose your property correctly. 

One thing to keep in mind, though, is that Sheffield has some different rules for property investors and landlords. 

For starters, Sheffield City Council has property licensing schemes in parts of the inner city. This means you will need a license to rent out a property. 

Moreover, there are also Article 4 Direction zones, meaning you will need planning permission to set up an HMO or shared accommodation. 

Do keep these aspects in mind if you want to invest in property in Sheffield. 

Why Invest in Sheffield?

  • Two universities (the University of Sheffield and Sheffield Hallam) which attract 63,000 students.
  • A huge employer with the Advanced Manufacturing Park given Enterprise Zone status.
  • Predicted 70,000 new jobs over the next 10 years.
  • Kelham Island, located north of the city centre, is named one of the coolest places to live in Britain.
  • Located near M1, and has its own tram network (Supertram) that has recently been extended to Rotherham.
  • Has regeneration plans to connect Sheffield to HS2 network, and introduce a new Trans-Pennine Tunnel and road that connects the city to Manchester.

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Glasgow Glasgow

Glasgow 

Glasgow Average Price: £152,930 

Average Rental Yield: 7.23% 

Predicted Property Price Growth by 2025: 24.4% 

Scotland’s most populated city is an incredibly attractive prospect for investors in 2021 thanks to its incredibly low property prices and significant rental returns. 

Boasting the largest economy in Scotland, and the fourth-highest in the UK, Glasgow generates nearly £27 billion every year according to the Centre for Cities. 

Like many UK cities, the traditional industrial backbone has evolved into a digital and marine technology paradise. 

The former shipyards that built Glasgow up have been heavily regenerated, with the Clyde Waterfront project regenerating nearly 20km of space. 

Glasgow was one of the first European Capitals of Culture back in 1990, and it has continued this reputation today, with over 20 museums and art galleries alone. 

The Scottish city is also a major student destination, with around 60,000 students studying at the University of Glasgow, the University of Strathclyde, and Glasgow Caledonian. 

If you’re looking to target the student market, the South side, East end, and Northeast of the city are all good spots for student accommodation. 

Glasgow Property Prices Glasgow Property Prices

Glasgow Property Prices 2020 – 21

 

When it comes to the property market, prices have lulled in growth in the first five months of 2021 but have still increased significantly since the start of the pandemic. 

As of May 2021, property prices in the city are a staggering 15.32% higher than a year prior – a positive sign for future growth when you also factor in the 24.4% prediction from Savills.  

These prices are likely to grow even higher when you consider regeneration to the transport system. 

Transport links are usually one of the biggest drivers behind property growth, and there are upcoming plans to introduce a “game-changer” metro system, to accompany the already fantastic underground subway that loops around the city. 

This sets up an excellent basis to start your investment now before prices grow even higher in the near future. 

Why Invest in Glasgow?

  • The fourth-largest economy in the UK, generating £27 billion per year.
  • One of the UK’s biggest student centres, with an upcoming £1bn campus expansion plan for the University of Glasgow.
  • Top 10 world tourist city according to Lonely Planet.
  • Springboard for tourists visiting the Scottish Highlands.
  • One of the biggest shopping centres in the UK, centred around the iconic Sauchiehall Street.
  • New £118m campus in the pipeline for the University of Glasgow, dubbed “Scotland’s Silicon Valley on the Clyde.”

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Leicester Leicester

Leicester 

Leicester Average Price: £204,529 

Average Rental Yield: 5.31% 

Predicted Property Price Growth by 2025: 23.9% 

Leicester is a city on the rise. 

With a population set to increase by 11% by 2031, the East Midlands city is home to some of the UK’s biggest employers, with the likes of Next, Dunelm, and Walkers based in the city. 

Walkers currently operate the largest crisp factory in the world – so no wonder they can afford Leicester City legend Gary Lineker in the adverts! 

A report from PwC and Demos back in 2018 found that Leicester is one of the top 10 strongest economies in the UK and is a major player in light manufacturing industries. 

It’s also home to one of the busiest NHS Trusts, the University Hospitals of Leicester NHS Trust, which employs over 15,000 people. 

This is good news for landlords, as targeting the surrounding area will guarantee tenant demand. 

It doesn’t stop there, though, for Leicester.  

The city has superb transport links thanks to its ideal positioning near the M1, M69, and A46, making it an ideal home for any commuters. 

Crucially, it is also just 47 minutes and one hour away from Birmingham and London by train, making it an even more tantalising prospect. 

Leicester Property Prices Leicester Property Prices

Leicester Property Prices 2016 – 2021

 

These transport links and employment opportunities have had a considerable impact on the local property market. 

Since May 2016, property prices have rocketed in the city, increasing by a whopping 40.33% in just five years. 

And with further predictions in place of a 23.9% rise by 2025, Leicester is a smart option. 

While rental yields may not be the highest on this list, the capital growth rates do make up for it, offering a compelling option for any investors in the UK. 

Why Invest in Leicester?

  • Population set to rise by 11% by 2031.
  • Home to the University Hospitals of Leicester NHS Trust, which employs over 15,000 people.
  • Just 47 minutes away from Birmingham, and one hour from London.
  • One of the top 10 strongest UK economies, according to PwC.
  • Superb transport links with nearby access to M1, M69, and A46.
  • Credited as one of the most affordable places for student accommodation.

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London at sunset London at sunset

Where is London on This List? 

You may have been reading this list puzzled at London’s lack of mention, but there’s good reason for the capital’s omission. 

It can be summed up quite easily with a single number: £765,822. 

Yes. You guessed it. That’s the average property price in the capital. 

Valued at over 200% more than the average UK home, it’s simply no longer feasible for any beginner investor to take a slice out of the London property market. 

And to tell you the truth, this is a good thing. 

The London market has seen some serious decline over the years, with these sky-high prices proving unsustainable. 

Rent has dropped frequently too, with property price growth stagnating or dropping in many boroughs and locations across the London region. 

Even if you do have the money, you will likely find a lot more bang for your buck in other locations. 

Up and Coming Areas to Buy Property in the UK 

While this list of the best places to invest in property UK 2021 will set up any investor for success, there are some areas that didn’t quite make the list but could do in the near future. 

All of these locations are already ideal for investing, but may have slightly higher property prices or lower yields than others on this list. 

If you are making a property business plan, be sure to consider the following cities to maximise your property portfolio. 

With that in mind, here’s a list of the up and coming areas to buy property in the UK in 2021. 

Best Place to Buy Property UK for Capital Growth Best Place to Buy Property UK for Capital Growth

Best Place to Buy Property UK for Capital Growth

Now that we’ve concluded our list of the best places to buy property in the UK, let’s summarise our locations with the best cities for capital growth and rental yields. 

In the capital growth table, you will see that both Scottish cities have been omitted. 

This is because data for Scotland on the Land Registry only goes back to 2004, so it would be an unfair 20-year comparison to other UK cities. 

Based on capital growth, Manchester is likely the best place to buy property, with the highest 20-year growth rate in the UK. 

A close second is Leicester, which has superior five-year growth rates, making it another contender as the best property investment location at the moment. 

Best Place to Buy a House in the UK for Rental Yields Best Place to Buy a House in the UK for Rental Yields

Best Place to Buy a House in the UK for Rental Yields 

Below you will find a table summarising the rental yields and property prices for every city on this list. 

If you want to know where to buy a property and are focusing on rental yields, then the likes of Manchester, Glasgow, and Newcastle are leading the charge, with returns upwards of 7%. 

Another strong contender for the best place to buy a house in UK areas for rental yields is Liverpool.  

Despite the lower averages, there are plenty of properties that can deliver upwards of 8% in the area, with the potential to earn over 10% in city centre postcodes like L1. 

Property Investment UK: How to Invest in UK Cities 

Now that we’ve looked in detail at the best places to invest in UK property, it’s time to discuss how you can get involved in UK property investment. 

There are two main ways to currently get involved with property investment in UK cities. 

Firstly, there are Real Estate Investment Trusts. 

Real Estate Investment Trusts, otherwise known as REITs, are companies that own rental properties on behalf of investors. 

They work like any other company on the stock market, and pay out 90% of their income through dividends to investors.  

However, if you’re looking for a lucrative investment where you can take advantage of capital growth rates and rental yields, then buy to let property is likely your preferred choice. 

If you’re a buy to let investor, we have some excellent opportunities here at RWinvest, with our off-plan properties located in many of the best places to buy property UK on this list, including Liverpool, Manchester, Birmingham, Slough, Leicester, and Luton. 

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Property Investment UK Opportunities With RWinvest

If you want to get some of the best investment property UK-wide, then look no further than the amazing and affordable options at RWinvest. 

You can invest today from just £34k and get access to assured rental returns up to 8%. 

If this sounds good, take a look at the property listings below, or click on the blue speech button in the bottom right corner of the page to talk to one of our property experts today. 

RWinvest Liverpool Office RWinvest Liverpool Office

Who is RWinvest? Real Estate Investment UK Experts 

If you’re looking at buying rental property in the best areas to invest in real estate, RWinvest has got you covered. So why invest in property with RWinvest?

  • We’re an award-winning property investment company, named the best property business in the North West 2020. 
  • Specialists in residential and student property, with over 17 years of experience. 
  • We offer exclusive property opportunities that allow you to invest with just £34k. 
  • Immaculate track record of delivering properties on time, on budget, and fully tenanted. 
  • Over 951 five-star reviews. 
Who is RWinvest? Who is RWinvest?

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

Alternatively, if you want to learn more about investing, we have tonnes of content on our website. From looking at property prices after Brexit, to the top 10 property investment books, to finding out the best places to retire, we have plenty of engaging content just for you. 

We even have reports on exciting up and coming investment areas. For content like that, check out our beginners guide to Wigan property investment in 2021/22.

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Embankment Exchange

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The Hive

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Disclaimer: This guide was written in August 2021. Depending on when you read, data may be outdated and no longer accurate. Always research yourself to get the latest figures possible.