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: £231,656

Average Rental Yield: 8.28% (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.

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 its 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 sixth-highest rental yields in the UK, with the fourth-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.

Take a look at how Manchester has seen property prices rise annually since March 2018:

As you can see, prices skyrocketed during 2021 by a staggering 13.05%, per Land Registry data. This growth carried on until now in 2023, where Manchester sees an average property price of £231,656

2. Liverpool

Average Property Price: £177,803

Average Rental Yield: 7.71%

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 the UK House Price Index, Liverpool has beaten out some of the UK’s largest cities in terms of capital growth – seeing an increase of 7.10% on the year and 40.2% over the last five years.

This puts Liverpool at the very top of the country in terms of capital growth.

However, rents have not risen at the same rate as house prices, meaning rental yields in Liverpool are not as high as in other cities. Nevertheless, you’re still getting a high yield combined with affordable prices, making it more likely you will see strong returns.

Here’s a chart showing how the UK House Price Index has recorded annual growth in Liverpool since 2018:

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.

Thanks to the range of highly-respected universities in Liverpool, the Merseyside city is also one of the best places to invest in student property right now.

The University of Liverpool and Liverpool John Moores University combine to bring over 48,000 full-time students to the city, per The Times.

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: £231,270

Average Rental Yield: 8.29%

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.

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 2023. In the past year, Birmingham has seen the average house price rise by 5.88%, on top of a considerable five-year growth of 30.23%.

This chart shows how Birmingham has seen prices rise since 2018, making it clear that this city is on the up and up when it comes to property prices.

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

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4. Nottingham

Average Property Price: £190,354

Average Rental Yield: 9.88%

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 city has recorded impressive house price growth over the last five years, with prices rising by 9.29% in the last year alone! Nottingham has seen house prices rise by 39.5% since 2018, which is over 12% higher than the national average, so investors looking for capital growth should definitely consider the city for investment.

This chart shows how fast house prices have risen in Nottingham, making it clear why we regard it as one of the best places to invest in property in the UK right now.

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 nearly £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.

Both Nottingham Trent University and the University of Nottingham are also highly respected, coming in at 62nd and 63rd respectively in the Guardian’s rankings of the UK’s top universities.

5. Newcastle

Average Property Price: £193,150

Average Rental Yield: 7.65%

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 eighth highest rental yields in the UK at 7.65%, 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 increase in prices of over 23%. While previously, Newcastle 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 2023.

6. Leeds

Average Property Price: £235,566

Average Rental Yield: 9.06%

Predicted Growth by 2027: 11.7%

With an average property value of £235,566, 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 3rd for UK rental yields and 5th 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 UK’s largest centre for law, Leeds is overflowing with business opportunities in 2023.

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.

Crucially:

Leeds is also set for historical growth from regeneration efforts, with South Bank Leeds 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, nearly 5% over the national average since 2018. This chart breaks down how the city has seen house prices rise in recent years.

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: £163,791

Average Rental Yield: 9.88%

Predicted Growth by 2027: 9.5%

Ranked 1st for rental yields but with poor 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.

In fact, our research puts rental yields in Glasgow as the joint-highest on our list! If you are looking to make returns quickly from property investment, Glasgow is definitely one of the best places to invest in the UK!

However, growth has been sluggish in recent years, so only consider Glasgow if you are looking to value rental income over capital appreciation. As this chart shows, house prices fell in the last year by 0.66%, so don’t expect to see major capital growth by investing here.

8. Middlesbrough

Average Property Price: £141,837

Average Rental Yield: 5.10%

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:

‘An average price that low?! 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 seventh-highest capital growth in the UK, with prices rising by 30.67% over the last five years.

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.

It’s not just us who consider Middlesbrough to be a sleeper hit. Zoopla recently ranked the town as one of the ten highest-yielding areas in the UK.

When multiple sources are saying this is one of the best places in the UK to buy investment property, it’s likely they’re not far off the mark.

With that being said, the town has seen a lower rate of capital growth than you might like. With an average growth of 7.76% in the last year, you’ll see a solid rate of growth to go along with the strong yields.

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: £162,941

Average Rental Yield: 8.34%

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 in the UK, with the average house price in Preston being over £100,000 lower than the national average, per Land Registry data.

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.

However, capital growth in the city has been sluggish, and it lags behind other cities on this list in this regard with only a growth in house prices of 28.58% since 2018. When you consider this is barely 1% above the national average, it suggests that Preston may not be the ideal city to invest in if you are looking for capital appreciation.

This chart goes into more detail.

10. Newport

Average Property Price: £236,026

Average Rental Yield: 6.87%

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 solid rental yields, 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 by Adzuna, thanks to the job vacancies and salaries offered – a positive sign for any potential property investors.

Newport has also seen a huge amount of capital growth over the past few years, with the second-highest five-year growth rate of all cities on this list! With prices rising by 40.61% since 2018, Newport is one of the best places to invest in property in the UK if you are looking to earn through capital growth.

This graph shows just how rapidly the city has seen house prices rise over the last few years.

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Best Places to Invest in Property 2023 For Capital Growth

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

These cities have future growth predictions of over 8% by 2027 while also offering high capital gains over the last 12 months and five years, with prices rising between 39-40% since 2018.

12-Month Growth
5-Year Growth
Predicted Growth by 2027

Best Rental Yields UK in 2023

Currently, the best places to invest in the UK for rental yields in 2023 are Nottingham, Glasgow and Leeds, which show average rental returns of over 9%. Don’t skip these cities if you’re looking for the best places to buy rental property in the UK.

Average Monthly Rent
Average Property Price
Average Rental Yield

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.

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.

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? 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 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.

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 £184,825, meaning you can target those commuting to Manchester for a far cheaper price. Investment opportunities like Vantage Point in Wigan start from just £132,950 and offer 7% rental returns.

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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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 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, and past growth was calculated using their data.

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 or find the best off-market properties for sale, 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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