Best Places to Invest in UK Property in 2024

With its diverse regions offering a plethora of investment opportunities, the UK property market presents potential for substantial returns. 

However, the key to unlocking these returns lies in one critical factor: location. 

The importance of choosing the right location cannot be overstated, as it directly influences the economic growth, rental yields, property price trends, and the future development plans of the area—elements that are fundamental to the success of any property investment.

We take a look at some of the best but also the worst property investment areas the UK has to offer in 2024. Further, we’ll touch on how to make sure you invest in a property that offers the best rental yields and potential for capital growth.

Best Property Investment Areas in the UK

Now let’s look at the best property investment areas in the UK regarding profitability.

Birmingham

• Average Property Price: £244,741 (Zoopla)
• Average Monthly Rent: £1,232 (PropertyEngine)
• Average Rental Yield: 6%
• JLL Price Growth Prediction 2023-2027: 19.2%
• JLL Rental Growth Prediction 2023-2027: 19.3%

Birmingham, the UK’s second-largest city, continues to be a premier choice for property investment, driven by extensive regeneration, high demand, and robust growth projections. The city’s ambitious Our Future City plan is set to transform Birmingham with new mixed-use developments and enhanced public spaces. 

Wit an expected price rise of 19.2% by 2027, Birmingham’s market is buoyed by the legacy of the Commonwealth Games, the HS2 development at Curzon Street, and significant inward investment, all fostering increased tenant demand. 

The city is becoming increasingly attractive for young professionals and graduates, with forecasted population growth and a high graduate retention rate. 

Birmingham’s investment landscape is dominated by modern apartments in the city centre, with areas like Selly Oak offering rental yields of up to 9.3%. Key transport links, including Grand Central and Birmingham International Airport, alongside the anticipated HS2 hub, cement Birmingham’s status as a top UK investment locale.

The city is at the forefront of several major infrastructure projects that are set to enhance its connectivity and economic prospects further. The HS2 high-speed rail project, despite its evolving scope, promises to reduce travel times to London and other major cities, reinforcing Birmingham’s position as a strategic transportation hub. Additionally, the development of the Midlands Metro tram network and improvements to Birmingham International Airport are set to improve local and international connectivity.

Best Rental Yields in Birmingham:

• B5 – Digbeth: 6.6%
• B18 – Hockley: 6.5%
• B1 – City Centre: 6.2%
• B16 – Edgbaston: 6.0%
• B29 – Selly Oak: 9.6%

Derby

• Average Property Price: £229,437
• Average Monthly Rent: £836
• Average Rental Yield: 4.4%
• JLL Price Growth Prediction 2023-2027: 20.5%
• JLL Rental Growth Prediction 2023-2027: 12%

As a key player in the UK’s engineering and manufacturing sectors, particularly in the rail, aerospace, and automotive sectors, Derby’s property market is characterized by stable growth and a strategic location in the East Midlands. With ongoing investments in infrastructure and the local economy, Derby is positioned as an attractive option for investors seeking

Home to global giants like Rolls-Royce and Bombardier, Derby boasts one of the highest-skilled workforces in the UK, contributing to its resilience and economic stability. This strong industrial base attracts professionals from various sectors, driving demand for housing and supporting a steady rental market.

Positioned near the M1 motorway and with excellent rail links, Derby offers convenient access to major cities such as London, Birmingham, and Manchester. This connectivity is a key asset, enhancing the city’s appeal as a place to live for those seeking accessibility to the wider UK without the higher living costs of larger cities.

The presence of the University of Derby and several research institutions attract students and academics from across the country and abroad, generating consistent demand for rental accommodation and contributing to the city’s dynamic community.

Derby offers a high quality of life, with access to the beautiful Derbyshire countryside, excellent leisure facilities, and a rich cultural heritage. This quality of life attracts families, young professionals, and retirees alike, creating a diverse and stable housing demand.

Compared to other UK cities, Derby offers a more affordable entry point into the property market, with significant potential for capital growth and rental yields. The city’s economic stability, combined with ongoing development projects, makes it an attractive location for investors seeking value and long-term growth prospects.

Best Rental Yields in Derby:

• DE1 – 6.1% (City centre)
• DE14 – 4.8% (Burton-on-trent)
• DE3 – 4.5% (Mickleover)
• DE23 – 4.5% (Heatherton)
• DE24 – 4.4% (Alvaston Moor)

Leeds

• Average Property Price: £248,931
• Average Monthly Rent: £1,341
• Average Rental Yield: 6.5%
• JLL Price Growth Prediction 2023-2027: 14.2%
• JLL Rental Growth Prediction 2023-2027: 15.9%

Leeds, situated in the heart of the UK, is increasingly recognized as a prime location for property investment for several compelling reasons. 

It is the UK’s second-largest financial and legal center after London, hosting major banks, insurance companies, and law firms. This economic diversity attracts a skilled workforce from across the country and supports a strong rental market.

The city is a major educational hub, home to several high-ranking universities, including the University of Leeds, Leeds Beckett University, and Leeds Trinity University. This presence of higher education institutions generates a substantial student population, ensuring consistent demand for rental accommodations and presenting a lucrative opportunity for buy-to-let investors.

Leeds is undergoing significant regeneration, with numerous development projects transforming the cityscape and enhancing its infrastructure. Projects such as the South Bank Leeds regeneration plan aim to double the size of the city center, creating thousands of homes and jobs, and improving public spaces and connectivity. This regeneration is set to increase property values and rental demand in the area.

The city’s growing population, bolstered by young professionals and students, underpins a robust rental market. Leeds has witnessed a surge in demand for rental properties, driving up rental yields and making it an attractive location for investors. The variety of housing needs, from city-center apartments to suburban family homes, allows investors to diversify their portfolios.

Leeds benefits from excellent transport links, including road, rail, and air connections. The city is a key node on the UK’s motorway network, has a busy railway station with national connections, and is close to Leeds Bradford Airport. Improved connectivity, especially with the anticipated developments in public transport and infrastructure, will further enhance Leeds’ attractiveness to businesses and residents alike.

Leeds is known for its vibrant cultural scene, green spaces, and quality of life. The city offers a mix of urban living with easy access to the countryside, appealing to a wide range of residents. This quality of life is a significant draw for young professionals and families looking for a balance between work and leisure, further driving housing demand.

The combination of a strong and diverse economy, significant student population, ongoing regeneration projects, and a robust rental market positions Leeds as a compelling location for property investment in 2024. Investors can capitalize on the city’s growth trajectory, benefiting from both capital appreciation and strong rental yields.

Best Rental Yields in Leeds:

• LS4 (Burley) – 10.5% 
• LS2 (Woodhouse) – 9.5%
• LS6 (Headingley) – 8.2%
• LS9 (Osmondthorpe) – 7.7%
• LS1 (City Centre) – 7.2%

Manchester

• Average Property Price: £251,038
• Average Monthly Rent: £1,515
• Average Rental Yield: 7.2%
• JLL Price Growth Prediction 2023-2027: 19.3%
• JLL Rental Growth Prediction 2023-2027: 21.6%

Manchester, often dubbed the UK’s “second city,” has become a beacon for property investors seeking opportunities in urban centers outside London. 

Manchester’s economy is one of the fastest-growing in the UK, driven by sectors such as finance, professional services, technology, and media. The city is home to MediaCityUK, a hub for major broadcasters and creative enterprises, and has a burgeoning tech scene that has led to it being dubbed the UK’s “Silicon Valley.” This economic vitality attracts businesses and talent alike, fueling demand for housing.

The city’s population is growing rapidly, with a significant proportion of young professionals and graduates. Manchester’s universities are among the largest in the UK, producing a steady stream of graduates, many of whom choose to stay in the city due to the job opportunities and lifestyle it offers. This demographic trend underpins a strong and sustained demand for rental accommodation, making Manchester particularly attractive for buy-to-let investors.

Manchester has been the focus of extensive regeneration projects that have transformed the cityscape and improved its infrastructure. Projects like the Northern Quarter redevelopment, the expansion of MediaCityUK, and the ongoing development of the Manchester Airport City are significant draws. The planned High-Speed Rail (HS2) project, despite uncertainties, promises to enhance Manchester’s connectivity to London and other major cities, further boosting its investment potential.

The property market in Manchester has seen consistent growth in both capital values and rental demand. The city offers a range of investment opportunities, from modern city-center apartments to suburban family homes. Rental yields in Manchester are among the highest in the UK, driven by the city’s strong rental demand and relatively affordable property prices compared to London.

Manchester boasts a rich cultural heritage, renowned music scene, and vibrant nightlife, along with world-class sporting facilities. The city is home to two of the world’s most famous football clubs, Manchester United and Manchester City. This cultural and lifestyle appeal attracts a diverse population, contributing to the city’s dynamic and inclusive community.

Manchester’s strategic location in the heart of the UK makes it a key transport hub, with excellent road, rail, and air connections. Manchester Airport is the UK’s third-largest, offering global connectivity, which supports the city’s international business links and appeal to overseas investors.

The combination of strong capital growth potential and high rental yields makes Manchester an attractive option for both domestic and international investors. The city’s ongoing economic growth, population increase, and regeneration initiatives are expected to continue driving the property market forward, offering lucrative opportunities for investment in 2024.

Best Rental Yields in Manchester

• M14 – 9.5% (South Manchester)
• M5 – 6.9% (Salford)
• M40 – 6.7% (Moston)
• M6 – 6.5% (Pendleton)
• M9/M11 – 6.5% (Harpurhey/Clayton)

Sheffield

• Average Property Price: £244,682
• Average Monthly Rent: £924
• Average Rental Yield: 4.5%
• JLL Price Growth Prediction 2023-2027: 11.7%
• JLL Rental Growth Prediction 2023-2027: 11.5%

Sheffield, located in South Yorkshire, England, stands out as a compelling investment destination in 2024, thanks to its strategic initiatives towards economic development, urban regeneration, and education. 

Historically known for its steel production, Sheffield has successfully diversified its economy to include sectors such as advanced manufacturing, technology, and the creative industries. The city is part of the Sheffield City Region, which has been the recipient of substantial investment aimed at boosting economic growth and employment. This economic resilience and diversification create a stable environment for property investment.

Sheffield is a significant educational hub, home to the University of Sheffield and Sheffield Hallam University, which attract over 60,000 students from across the globe. The substantial student population underpins a strong demand for rental accommodation, presenting lucrative opportunities for buy-to-let investors. Additionally, the presence of these institutions fosters innovation and talent retention, contributing to the city’s workforce quality.

Sheffield has embarked on several ambitious regeneration projects aimed at revitalizing the city center and surrounding areas. The Heart of the City II project, for example, is transforming key parts of the city center with new public spaces, commercial developments, and residential units. These projects not only enhance the city’s appeal but also stimulate property value growth and rental demand.

Sheffield is often referred to as “the outdoor city” due to its proximity to the Peak District National Park and its abundance of parks and woodlands. This unique selling point attracts individuals and families looking for a high quality of life, blending urban living with easy access to nature. The emphasis on sustainability and green living is increasingly appealing to a broad spectrum of renters and buyers.

Sheffield’s strategic location in the heart of the UK, with excellent road and rail links, makes it accessible to major cities such as Manchester, Leeds, and London. While the city itself benefits from a comprehensive public transportation system, ongoing investments in infrastructure aim to enhance connectivity further, boosting its attractiveness to businesses and residents.

Compared to other major UK cities, Sheffield offers a more affordable entry point into the property market, with significant growth potential. The city’s ongoing economic development, coupled with regeneration initiatives, is expected to drive property prices and rental rates upwards, offering attractive returns for investors.

Driven by the student population and a growing number of young professionals and families attracted to the city’s lifestyle, Sheffield boasts a strong and diverse rental market. Areas close to universities and the city center are particularly popular, with high demand for both student accommodation and residential properties.

Best Rental Yields in Sheffield

• S3 – 7.6% (North Sheffield)
• S1 – 7.1% (City Centre)
• S5 – 6.7% (North Sheffield)
• S2 – 6.1% (East Sheffield)
• S61 – 5.5% (Rotheram)

Liverpool

• Average Property Price: £191,335
• Average Monthly Rent: £920
• Average Rental Yield: 5.8%
• JLL Price Growth Prediction 2023-2027: 11.9%
• JLL Rental Growth Prediction 2023-2027: 15.9%

Liverpool, a vibrant city in the North West of England, has emerged as an enticing hub for property investors looking to capitalize on its growth, regeneration, and cultural resurgence. As we look towards 2024, several key factors make Liverpool a standout choice for investment in the UK property market. 

Liverpool’s economy has seen significant transformation over the past decades, transitioning from its historical reliance on the port and manufacturing to a more diversified economic base. Key sectors driving growth include finance, healthcare, digital and creative industries, and tourism. This economic vibrancy has attracted businesses and fostered job creation, underpinning demand for residential and commercial real estate.

The city has been the focus of extensive regeneration initiatives that aim to revitalize both the city center and surrounding areas. Projects like Liverpool Waters and the Knowledge Quarter aim to create a mixed-use waterfront, enhance the city’s academic and research capabilities, and stimulate further investment. Such ambitious projects not only rejuvenate the urban landscape but also stimulate local economy and property values.

Liverpool’s rich cultural heritage, famously known as the birthplace of The Beatles, alongside its status as a UNESCO World Heritage Site, enhances its attractiveness to both tourists and residents. The city boasts an array of museums, galleries, and music venues, alongside vibrant nightlife and dining scenes. This cultural dynamism makes Liverpool an attractive place to live and invest, driving demand for rental properties.

The city’s population is growing, fueled by an influx of students and young professionals attracted by its universities, lifestyle, and employment opportunities. Liverpool’s rental market is buoyed by this demographic trend, offering high rental yields compared to other UK cities. Particularly for buy-to-let investors, Liverpool presents an appealing combination of affordable property prices and strong rental demand.

Home to several high-ranking universities and colleges, Liverpool has a significant student population requiring accommodation. This steady influx of students every year ensures a consistent demand for rental properties, making student housing a lucrative segment for investors.

Liverpool’s connectivity, through its port, railways, and proximity to major motorways, positions it as a key logistical hub in the North West. Ongoing and planned improvements in transport infrastructure, including potential enhancements to rail connectivity as part of the Northern Powerhouse initiative, further boost its appeal by improving accessibility to and from the city.

Liverpool’s property market offers a compelling value proposition with relatively lower entry prices compared to other major UK cities and significant upside potential. The city’s ongoing economic growth, combined with regeneration efforts, bodes well for capital appreciation and rental income growth over the medium to long term.

Best Rental Yields in Liverpool:

• L4 – 7.2% (Anfield, Kirkdale, Walton)
• L5 – 6.6% (Everton)
• L20 – 6.4% (Bootle)
• L1 – 6.3% (City)
• L13 – 6.3% (Stanley)

Newcastle

• Average Property Price: £221,796
• Average Monthly Rent: £1,200
• Average Rental Yield: 6.5%
• JLL Price Growth Prediction 2023-2027: 13.5%
• JLL Rental Growth Prediction 2023-2027: 12.38%

Newcastle upon Tyne, commonly known as Newcastle, is a vibrant city in the North East of England, offering a mix of rich history, cultural vitality, and modern urban regeneration. Its strategic position, economic diversity, and strong educational institutions make it an attractive location for property investment in 2024. 

ewcastle’s economy has undergone significant transformation, moving from its historical industrial base towards a more diversified and knowledge-driven economy. Key sectors include digital technology, science, finance, and education, all contributing to job creation and economic stability. The city is part of the broader North East growth strategy, benefiting from investment in innovation and infrastructure, which supports a robust property market.

The city has been the focus of substantial regeneration efforts aimed at revitalizing the urban landscape and boosting economic development. Projects such as the Newcastle Helix (formerly Science Central), a landmark initiative bringing together academia, the public sector, communities, business, and industry to create a global center for urban innovation, are transforming the city. Such investments not only enhance the city’s attractiveness but also stimulate demand for residential and commercial properties.

Newcastle is home to several renowned universities, including Newcastle University and Northumbria University, attracting students from across the UK and internationally. The significant student population underpins a continuous demand for rental accommodation, making the student housing market particularly attractive for investors. Additionally, these institutions contribute to the city’s talent pool, supporting local businesses and innovation.

The city is known for its vibrant cultural scene, with numerous festivals, museums, galleries, and theaters, alongside a lively nightlife. Newcastle’s quality of life is further enhanced by its accessibility to beautiful natural landscapes, such as the nearby Northumberland countryside and coast. This cultural and lifestyle appeal attracts young professionals and families, driving demand for diverse housing options.

Newcastle’s rental market benefits from the city’s economic and educational dynamics, offering high rental yields compared to many other parts of the UK. The demand for rental accommodation is fueled by students, young professionals, and families, providing a solid foundation for buy-to-let investments.

The city boasts excellent transport links, including Newcastle International Airport, a comprehensive metro system, and strong rail and road connections to other major UK cities. This connectivity makes Newcastle an accessible and attractive place to live and work, further boosting its investment potential.

Relative to other UK cities, Newcastle offers a more affordable entry point into the property market, with considerable room for growth.

Best Rental Yields in Newcastle

NE8 – 7.7% (Gateshead)

NE1 – 7.3% (City)

NE6 – 6.7% (Walkergate, South Heaton)

NE63 – 6.6% (Ashington)

NE15 – 6.5% (Throckley)

Leicester

• Average Property Price: £264,558
• Average Monthly Rent: £1,235
• Average Rental Yield: 5.6%
• JLL Price Growth Prediction 2023-2027: 17.5%
• JLL Rental Growth Prediction 2023-2027: 45%

Leicester, with its strategic position in the heart of England, is increasingly recognized as an attractive destination for property investment heading into 2024. 

The city’s blend of economic resilience, demographic diversity, significant development projects, and educational institutions lays a strong foundation for its investment appeal. 

Leicester’s economy is notably diverse, encompassing sectors such as manufacturing, services, health, and education. The city’s commitment to economic growth and diversification is evident through its support for small and medium-sized enterprises and the development of innovation hubs that attract startups and technology companies. This economic environment fosters job creation and sustains demand for both residential and commercial real estate.

The presence of reputable universities, including the University of Leicester and De Montfort University, contributes significantly to the city’s demographic profile. These institutions attract over 30,000 students annually, generating consistent demand for rental accommodation and contributing to a vibrant, youthful city atmosphere. The universities are also key drivers of research and innovation, further enhancing Leicester’s economic profile.

Leicester’s rental market benefits from a steady influx of students, young professionals, and families, attracted by the city’s employment opportunities, educational institutions, and quality of life. This demographic diversity ensures a robust demand for a wide range of rental properties, from city-center apartments to family homes in suburban areas, offering attractive rental yields to investors.

In comparison to other major UK cities, Leicester offers more affordable entry points into the property market, coupled with promising capital growth potential. The city’s ongoing development and economic growth are expected to drive property values up, presenting a favorable scenario for investors seeking long-term appreciation in addition to rental income.

Nottingham

• Average Property Price: £262,461
• Average Monthly Rent: £1,227
• Average Rental Yield: 5.6%
• JLL Price Growth Prediction 2023-2027: 17.5%
• JLL Rental Growth Prediction 2023-2027: 35.41%

Nottingham, located in the heart of the UK, has been steadily rising as a premier destination for property investors, particularly as we look towards 2024. This city combines historical charm with modern development, making it an attractive place for both residents and investors. 

Nottingham’s economy is characterized by its diversity and innovation, with strong sectors in digital media, life sciences, clean energy, and finance. The city is home to several business parks and innovation centers, fostering growth and attracting investment from national and international businesses. This economic dynamism supports a healthy employment market, driving demand for residential and commercial properties.

Nottingham is undergoing significant regeneration, with multi-billion-pound projects aimed at transforming the city’s landscape and infrastructure. The Southern Gateway, Island Quarter, and Waterside projects are set to revitalize large areas of the city, creating new residential, commercial, and leisure spaces. These developments are not only enhancing the city’s appeal but are also expected to stimulate property values and rental demand.

Nottingham’s central location in England provides excellent connectivity to major cities across the UK, making it a strategic choice for businesses and residents. The city benefits from strong rail links, including the East Midlands Railway, and is close to major motorways. Nottingham also plans to enhance its transport infrastructure further, including expansions to its tram network, improving accessibility and attractiveness.

With two major universities, the University of Nottingham and Nottingham Trent University, the city boasts a large student population, creating a vibrant academic community and consistent demand for student accommodation. These institutions are also significant employers and contribute to the city’s innovation and research capabilities, attracting a young, skilled workforce.

Nottingham’s rental market is robust, driven by its growing student population, young professionals, and families attracted to the city’s lifestyle and employment opportunities. This has resulted in high rental demand, particularly in city-center apartments and residential areas close to universities, offering attractive rental yields for investors.

Nottingham’s property market remains relatively affordable compared to other UK cities, offering a lower entry point for investors. With ongoing economic growth, regeneration efforts, and a strong rental market, Nottingham presents significant capital appreciation potential and solid rental yields.

Best Rental Yields in Nottingham

• NG1 – 8.1% (City)
• NG7 – 6.7% (Lenton)
• NG6 – 6.2% (Bulwell)
• NG5 – 5.4% (Daybrook and Arnold)
• NG8 – 5.2% (Broxtowe & Wollaton)

Glasgow

• Average Property Price: £226,741
• Average Monthly Rent: £1,141
• Average Rental Yield: 6%
• JLL Price Growth Prediction 2023-2027: 14.2%
• JLL Rental Growth Prediction 2023-2027: 15.3%

Glasgow, Scotland’s largest city, presents a compelling case for property investment as we move into 2024. The city combines a rich industrial heritage with a vibrant cultural scene and a forward-looking approach to urban development and economic growth. 

Glasgow has successfully transitioned from its industrial roots to a diversified economy, with strong sectors in finance, education, healthcare, and the creative industries. The city is home to several major banks, businesses, and a burgeoning tech startup scene, contributing to economic resilience and job creation. This economic diversity underpins a steady demand for both residential and commercial properties.

Glasgow is undergoing extensive regeneration, with significant investments aimed at revitalizing the city’s infrastructure, public spaces, and residential areas. Projects like the Clyde Waterfront regeneration and the Glasgow City Innovation District are transforming the urban landscape, creating new opportunities for investment and enhancing the city’s attractiveness to businesses and residents alike.

Glasgow’s strategic position, with excellent transport links including Glasgow Airport, a comprehensive rail network, and proximity to Scotland’s beautiful landscapes, makes it an attractive location for both domestic and international investors. The city’s commitment to improving its transport infrastructure further enhances its accessibility and appeal.

With world-renowned institutions such as the University of Glasgow, Glasgow Caledonian University, and the University of Strathclyde, the city attracts a large student population from around the globe.

 Areas around universities, the city center, and up-and-coming neighborhoods offer particularly attractive rental yields for investors.

Glasgow’s focus on sustainability and green initiatives is evident in its plans for reducing carbon emissions, enhancing green spaces, and promoting sustainable urban mobility. This commitment aligns with growing demand for eco-friendly living and investment in sustainable developments.

Compared to other major UK cities, Glasgow offers a more affordable entry point into the property market, with substantial room for capital growth. The city’s ongoing economic development, coupled with regeneration efforts and a strong rental market, presents significant opportunities for property value appreciation and solid rental yields.

Best Rental Yields in Glasgow

• G2 – 8.1% (Glasgow Charing Cross)
• G5 – 8.1% (Gorbals)
• G20 – 8% (Gilshochill and Wyndford)
• G42 – 7.7% (Crosshill)
• G31 – 7.7% (Haghill)

Other Notable Places in the UK to Invest In

In addition to the cities previously discussed, there are several other notable locations in the UK that are recognized for their investment potential, especially considering factors such as economic growth, regeneration projects, and rental demand. 

Here are some additional cities worth considering for property investment.

1. Edinburgh

Scotland’s capital is known for its strong economy, buoyed by sectors such as finance, tech, and tourism. Edinburgh’s property market benefits from a steady demand driven by a growing population, high-quality education institutions, and its status as a cultural and historical hub.

2. Bristol

Bristol stands out for its vibrant economy, with strong sectors in aerospace, media, and information technology. The city’s quality of life, buoyant job market, and ongoing development projects make it an attractive location for young professionals and families, driving demand for housing.

3. Cardiff

The capital of Wales is undergoing significant transformation, with investment in commercial and residential developments. Cardiff’s economy is diversified, with growth in sectors such as finance, media, and public services, supporting a strong rental market.

4. Brighton and Hove

Known for its seaside charm, vibrant cultural scene, and digital tech industry, Brighton and Hove attract a mix of students, professionals, and creatives. The city’s popularity and limited housing supply can drive strong rental yields and capital growth.

5. Reading

Located in the Thames Valley, Reading is a major commercial center with a strong presence in technology, finance, and insurance sectors. Its proximity to London, combined with lower property prices and significant regeneration efforts, make it an appealing investment choice.

6. Southampton

A key port city on the south coast, Southampton has a robust economy focused on maritime, logistics, and education sectors. The city’s university and regeneration projects in the city center and waterfront areas enhance its investment appeal.

7. Oxford and Cambridge

Both cities are world-renowned for their universities and are centers for innovation and technology. While property prices are high, the strong demand for rental accommodation from students and academics, combined with high-tech and science sectors, underpins investment potential.

8. Milton Keynes

Known for its modern infrastructure and strategic location between London, Birmingham, and Cambridge, Milton Keynes boasts a strong economy with significant investment in technology and logistics sectors. The city’s growth plans and demand for housing make it an area worth watching.

How can you Spot an up-and-Coming Property Area?

When considering the best property investment areas in the UK, it pays to be able to spot an up-and-coming area. With the location being one of the most important factors when it comes to buying a house, how can a potential investor know whether an area is on the rise?

While no one can say with 100% certainty, some of the factors that indicate an area may become desirable include:

An influx of Young People

Young professionals in their 20s and 30s are often the trendsetters when it comes to the next best areas to live. As they move in, services and amenities tend to arrive around them. As a result, as an area becomes more desirable, property and rent prices tend to rise.

An Influx of Businesses 

As well as young people, an influx of businesses to an area can indicate its potential. In other words, the arrival of businesses means more people relocating for work, pushing up demand for property.

Regeneration and Incoming Investment

Incoming investment, for example, infrastructure or regeneration projects, indicates that an area will become more desirable. Consequently, bring an influx of people that will make property prices rise. 

Amenities

Areas that have shops, schools, supermarkets and other sought-after amenities tend to indicate that an area is up and coming. Especially if they are within walking distance. These areas are likely to be popular with tenants and likewise, give property prices a boost.

Transportation Links

Areas with good rail, road and air transport links tend to see an increase in property prices. To clarify, a few spots from transport hubs – whether train stations, underground stations or tram stops – is where property prices are likely to grow.

Find out more about how to spot up and coming property areas in this article.

Worst Places to Invest in UK Property 

Identifying the “worst” areas for property investment in the UK isn’t straightforward, as investment suitability can vary significantly depending on individual investor goals, risk tolerance, and the specific metrics used to define what makes an area less attractive for investment. 

However, there are certain factors and trends that can make some areas less appealing for investors seeking to maximize returns or minimize risk. 

These factors can include:

• Economic Decline: Areas experiencing economic hardships, such as high unemployment rates, low economic activity, and lack of investment, can be riskier for property investment. Properties in these areas might not appreciate as expected, and finding tenants could be more challenging.
• Declining Populations: Regions with a shrinking population might see reduced demand for housing over time, potentially leading to lower rental yields and difficulties in selling properties at a profit.
• High Crime Rates: Areas with high crime rates can be less desirable to potential tenants and buyers, impacting rental demand and property values negatively.
• Poor Infrastructure and Connectivity: Locations lacking in infrastructure development or with poor transport links can be less attractive for investment due to the potential impact on commuting times and accessibility, which are important factors for many tenants and buyers.
• Flood Risk Areas: Properties in areas with high flood risk may incur higher insurance costs and could be more difficult to sell or rent out, affecting investment returns.
• Low Rental Yields: Areas where the property prices are high compared to the rental income they can generate may offer lower rental yields, making them less attractive to buy-to-let investors.
• Over-Supply of Housing: Areas with an oversupply of housing, especially new builds, can lead to competition that depresses rental prices and property values.

These are currently mainly found in the south of England, where property prices are high. If you are looking for a property to buy in London, while yields may be lower, there are still plenty of prime opportunities in the capital. 

It doesn’t mean there aren’t opportunities in these areas, however, it does mean yields and capital gains may not be as great when compared to other areas:

1. Guildford GU10
2. Hemel Hempstead HP9
3. Ilford IG4
4. Watford WD7
5. Chelmsford CM4
6. Birmingham B93
7. St Albans AL4
8. Kingston KT13
9. London W1
10. Slough SL9

Should I Invest in Buy-to-Let in 2024?

If you’re looking for the best property investment areas in the UK for buying a buy-to-let property, you’ll not only have the opportunity to generate income from monthly rent but capital gains when you come to sell the property. The UK market has a steady stream of tenants looking for rental accommodation.

In the UK in 2021 there were 4.4 million households privately renting. As UK property prices jump to record levels, more people are renting for longer in order to save up for the 25% deposit most banks require for a mortgage. 

As mentioned before, a determining factor in whether buy-to-let property investment is a good idea is location. The UK’s northern cities are undergoing regeneration, and incoming investment makes them an increasingly appealing place to live. Some popular northern cities are facing a housing shortfall as a growing population enticed by new opportunities and cheaper living costs in these cities.

Is Now a Good Time to Get a Mortgage?

When you come to invest in a property, it’s highly likely that you’ll need a mortgage. Across the UK we’re seeing greater pressure on household budgets as a result of the increase in the cost of living and a possible increase in interest rates to subdue rising inflation. In other words, when interest rates rise, mortgages are more expensive which tends to lead to a decrease in demand for property and result in a cooling housing market. 

Despite this, interest rates currently remain low based on historic standards. Attractive mortgage deals are still available, although perhaps not as many as there were a few months ago. Those with the largest deposits are most likely to get the best mortgage rates.

It’s always worth talking to a mortgage advisor who will be able to give you access to a range of mortgage deals. You might want to consider a fixed-rate mortgage, while interest rates are relatively low. 

How Much Profit do Landlords Make in the UK?

In the UK, landlords earn on average £15,000 per year. This figure is before taxes and other decisions. Most landlords in the UK state that rental income accounts for around 40% of their gross income. Around 26% of landlords report a higher gross income of between £20,000 and £49,999 and 13% of landlords earn £50,000 or more from rental income.

What is a Good Yield for Buy-to-Let Property?

Along with capital gains prospects, rental yield is one of the most important considerations a landlord will have before investing in a property. In other words, the higher the yield the better. For instance, a yield of 8% or more would give a landlord a contingency budget should costs increase with little warning. Likewise, anything above 5% is considered a good yield, and 7% or more is ideal.

It’s worth noting that certain types of property have the potential to deliver higher yields than others. For example, some student properties in the right student cities can generate yields of up to 20% higher than the average property. You can read more about what makes a good yield in this article or take a look at our buy-to-let property guide giving an overview of everything you need to know when it comes to buying a buy-to-let property.