Seven of the best property investment opportunities in the UK

With its rich history and strong potential for growth, the UK property market offers both a compelling story and a promising opportunity. From stately homes and historic inner-city buildings to new developments and commercial skyscrapers, there’s something for every investor. 

Investment plans usually begin with a budget, followed by a property type. With those two important decisions made, it’s time for another big question: where should you actually buy? Which parts of the United Kingdom are prime property hotspots, and more importantly, what are the fundamental reasons behind their strong performance? 

In this guide, we’ll explore seven of the best places to buy property in the UK and explain why they stand out as prime locations for potential returns and capital growth. 

Important: The information in this guide is general in nature, not legally binding, and should not be considered financial or investment advice. 

Key takeaways:

• The UK property market remains diverse and resilient, offering opportunities across major cities for both capital growth and rental income.

• Regional cities like Manchester, Birmingham, and Liverpool present strong yields and lower entry costs, ideal for buy-to-let investors.

• Regeneration and infrastructure projects are driving long-term value in emerging urban areas across the UK.

• Overseas investors benefit from tailored financial solutions, including multi-currency accounts and escrow services to streamline cross-border transactions.

Seven top places to buy property in the UK 

1. London 

Greater London remains a prestigious segment in the UK property market. Its global appeal, economic strength and cultural significance make the city a fantastic location for property investment. While prices are admittedly higher, the potential for capital appreciation and rental demand is unparalleled. 

According to the UK House Price Index for January 2025, the average property price in London was £564,000 – an impressive 2.3% annual increase. While this growth is lower compared to other regions, the sheer volume of high-value transactions and consistent international demand makes the city a stable and enduring choice for property investment. 

Why invest in London? 

• High rental yields in central areas: While property prices are high, central London consistently delivers strong rental yields – particularly for flats in prime areas. London experienced a significant 2.3% monthly increase in house prices in January 2025, suggesting a potential uptick in investor confidence and activity.  

• Consistent demand from professionals, students, and expatriates: London is a global hub for finance, education and culture, virtually guaranteeing a constant influx of professionals, students and expats seeking rental accommodation. 

• Long-term growth potential: Despite occasionally fluctuating, London's long-term property value growth has historically outperformed other UK regions. Its ongoing regeneration projects and status as a leading world city support this potential. 

  
  

2. Manchester 

Dubbed the "capital of the North," Manchester is a formidable economic powerhouse. With thriving media, technology and education industries, the city offers excellent rental yields and more affordable property prices compared to London.  

The average house price in Manchester in January 2025 was around £232,000, representing a significant increase over the previous year. Rental yields in Manchester average around 5-6.5%, making it an attractive option for buy-to-let investors. 

Why invest in Manchester? 

• Strong rental demand from students and young professionals: Manchester has a large student population and a growing number of young professionals drawn to its vibrant job market, especially in digital and creative industries. This influx of people consistently fuels strong rental demand. 

• Significant infrastructure projects: Manchester is currently undergoing a resurgence, with infrastructure investments like Piccadilly Central and Victoria North promising urban renewal and better accessibility. These projects should boost the city's economy and property values in the long term. 

• Affordable entry points for investors: Manchester’s property prices are more accessible than those found in London and the South East, allowing investors with smaller budgets to enter the market and achieve good returns. 

3. Birmingham 

Birmingham, the UK’s second-largest city, has seen impressive regeneration efforts in recent years. Its central location and growing financial and professional services economies make it a hotspot for property investors.  

The average house price in Birmingham in January 2025 was approximately £232,000, with annual growth reflecting its increasing appeal. Rental yields in Birmingham can be excellent, ranging from 5% to 7% in key areas. 

Why invest in Birmingham? 

• Affordable property prices: Birmingham offers relatively affordable property prices compared to many other major UK cities, presenting a good entry point for investors. 

• High rental yields for city-centre apartments: The city's growing professional population and ongoing regeneration drive demand for city-centre apartments, leading to strong rental yields. 

• Connectivity improvements, including the HS2 high-speed rail project: In the future, Birmingham will benefit significantly from the HS2 project, enhancing its connectivity to London (and other major cities) and boosting its economic prospects. 

4. Liverpool 

Liverpool is known for its vibrant cultural scene, rich history and growing student population. The city’s affordable housing market and attractive rental yields have made it a favourite among investors on the hunt for strong returns.  

As of January 2025, the average house price in Liverpool was £160,000 - £170,000, making it a genuinely affordable place to buy. Rental yields in Liverpool can be surprisingly attractive, often exceeding 6-8% in certain areas. 

Why invest in Liverpool? 

• Affordable prices with strong rental yields: Liverpool offers some of the most attractive rental yields in the UK relative to its property prices, making it a compelling option for income-focused investors. 

• Regeneration projects, including the Liverpool Waters development: Ongoing regeneration initiatives like the Liverpool Waters project are transforming the city's waterfront and attracting investment, implying potential future growth in property values in the area. 

• High demand for rental properties from students and professionals: Liverpool has a sizeable student population and a growing number of young professionals who need rental accommodation as they study or begin their careers. 

5. Edinburgh 

The capital of Scotland, Edinburgh represents a combination of historical charm and a dynamic economy – particularly in finance, tourism and education. It’s a top destination for tourists, students and professionals, ensuring steady rental demand and relatively stable property values.  

The average house price in Edinburgh in early 2025 was £330,000 - £340,000, reflecting the city’s continued appeal as a desirable place to live and work. Rental yields in Edinburgh tend to be solid, averaging around 4-5%, with potential for higher returns in specific areas or through short-term lets. 

Why invest in Edinburgh? 

• Strong rental demand driven by tourism and education sectors: Edinburgh's thriving tourism industry and large student population create consistent and high demand for both short-term and long-term rentals. 

• Limited supply of properties in central areas boosts value: The historical nature of the city and planning restrictions limit the supply of new properties in central locations, which can help to maintain – and potentially increase – property values. 

• Opportunities for short-term rentals through platforms like Airbnb: Edinburgh's popularity with tourists offers lucrative opportunities for short-term rentals, potentially yielding higher returns than traditional long-term lets (though regulations should be carefully considered). 

6. Bristol 

Bristol is a thriving city in the South West known for its innovation, green initiatives and high quality of life. Young professionals and families regularly move into the area, making the city an excellent location for property investment with a strong rental market.  

The average house price in Bristol at the beginning of 2025 was around £358,000 – somewhat higher than the average house price in the surrounding area. Rental yields in Bristol are generally good, often ranging from 4% to 6%. 

Why invest in Bristol? 

• High demand for rental properties: Bristol's popularity as a place to live and work leads to consistently high demand for rental houses and flats. 

• Strong economic growth and a growing population: Bristol has a diverse and growing economy, attracting a skilled workforce and driving population growth. These factors combine to support the property market. 

• Proximity to London with more affordable prices: While still relatively expensive compared to the North, Bristol offers a more affordable alternative to London. It’s close enough to be a “satellite city” for some professionals, attracting those who want a better quality of life without sacrificing career opportunities. 

7. Leeds 

Leeds has emerged as a significant financial and legal hub in the North of England. It offers competitive property prices compared to the South and attractive rental yields, making it a compelling investment destination.  

The average house price in Leeds in January 2025 was approximately £200,000 - £210,000. Rental yields in Leeds can be very good, often ranging from 5% to 7% in well-located areas. 

Why invest in Leeds? 

• Thriving job market and strong rental demand: Leeds has a robust and expanding job market, especially in finance, law and technology, which attracts a large number of professionals and driving strong rental demand. 

• Affordable entry points for investors: Properties in Leeds are more affordable than those in many other southern cities, making it accessible to investors. 

• Ongoing infrastructure developments: Leeds is benefiting from ongoing infrastructure investments and regeneration projects, which are enhancing the city's appeal. 

It's important to note that property market conditions can change. Thorough due diligence, including consulting with local property experts and reviewing the latest market data, is vital for any investment decision. For overseas investors, understanding the specific legal and financial processes involved in purchasing UK property is also essential. 

Quick step-by-step guide to purchasing property in the UK 

What follows is a general overview of the UK property purchasing process. Crucially, these steps may vary depending on where in the United Kingdom you purchase property. For example, in Scotland, you’ll need a solicitor from the offer stage onward, and exchanging contracts is called “concluding the missives”.  

Overall, we recommend building your property investment team early and taking advice before you begin looking at listings.  

Read an in-depth guide to purchasing property in the UK here. 

1. Determine your budget 

Calculate how much you can afford, including additional costs like taxes, legal fees and potential renovations. If you’re based overseas, it’s important to factor in currency fluctuations, too.  

2. Research the market 

Choose a location that aligns with your investment goals. Consider rental yields, capital growth potential and market trends in your target area. 

3. Arrange financing 

If you need financing and intend to let your property, consider buy-to-let mortgages. UK banks and financial institutions often cater to overseas investors, though a higher deposit may be required. 

4. Engage professionals 

Build a team of experts to guide you through the process: 

• Solicitor or conveyancer: Handles legal aspects of the purchase. 

• Property agent: Assists with finding and evaluating properties. 

• Tax advisor: Helps navigate UK tax laws. 

• Currency specialist: Minimises risks associated with international transfers. 

5. Make an offer 

Once you’ve found the right property, submit an offer through the estate agent (in Scotland, you’ll need to retain a solicitor at this point). Negotiations may follow before reaching an agreed-upon price. 

6. Conduct due diligence 

Next, perform thorough checks to make sure there are no legal or structural issues with the property. Surveys and legal reviews are recommended at this stage. 

7. Exchange contracts 

After completing due diligence, you and the seller will exchange contracts. This legally binds the transaction, and a deposit (usually 10%) is paid. 

8. Completion 

On the agreed completion date, the remaining funds are sent to the seller’s agent or solicitor, and ownership is officially transferred to you. 

Why we're the right partner for property investors living abroad 

Purchasing property in the UK from abroad is a tricky process. Thankfully, the right financial partner can make things easier. A tailored multi-currency account, for instance, can give you a convenient way to receive rental income in different currencies. 

Larger residential or commercial property transactions benefit from escrow solutions, where funds are held by a third party until all the conditions of sale are met.  

At Interpolitan Money, we specialise in both of these financial services. As an FCA-authorised firm headquartered in the UK, we’re familiar with the regulatory landscape and can help clients choose solutions that make cross-border property transactions smoother and easier.  

Learn how Interpolitan Money helped a client purchase a £100 million London property. 

To find out more about our bespoke multi-currency accounts and escrow solutions, get in touch today.