When investing in property one of the most important decisions you can make is the location. With so many variables and things to consider what is right for one investor might not be the best for another.
There are however some universal signs and indicators to look at when choosing somewhere such as rental increases and property prices. In this article we’ll cover our top ten of the best places to invest in UK property in 2025.
We firmly believe that property is a solid investment choice this year.
With the current volatility and unpredictability of the global stock market, property values rarely plunge overnight, avoiding the sharp dips typical of volatile markets. At the same time, rental properties produce dependable monthly cash flow and rent payments that can cover financing costs even when other assets slump.
When shortlisting locations investors should start by looking at these key factors:
Strong regeneration and infrastructure projects.
These signal improving amenities and transport links making the location more desirable to live in which in turn drives property values higher.
Robust tenant demand
Cities with universities often have a consistent higher rental demand from students, as well as professionals who have stayed post graduation ensure high occupancy and stable rental income.
Affordability and Potential Yields
Striking the right balance between affordability and yield is important as this maximises both cash flow and long-term capital growth potential.
Legislative and Market Changes
Staying informed on legislative changes like the Renters Reform Bill and evolving mortgage rates is crucial, as these directly affect landlords’ rights, financing costs, and overall returns.
Why we’ve included it: England’s “second city” is reshaping itself via the £1.9 billion Smithfield regeneration and HS2 connectivity making London being reachable in just 45 minutes, fuelling capital growth.
Its 180,000-strong student population and a 6.8% rise in private rents (from £983 up to £1,050 in Mar 2025) ensure consistent rental demand. In February 2025, property buyers paid around 4.5% more than February 2024 at an average of £232,000.
Download our Why Invest in Birmingham Property Guide.
Why we’ve included it: Blackpool’s property market is booming right now, making it a great place to invest. Blackpool has been granted a £2 billion development fund supporting lots of new projects, such as new homes and community facilities all helping to make Blackpool a top spot to live and work all year round.
In February 2025, the average house price in Blackpool saw an 8.1% increase from the previous year, reaching £135,000.The average private rent increased by 8.7% over the year to March 2025, reaching £654.
At Prosperity Wealth we believe Blackpool is a fantastic investment opportunity and with our new development The Bay you can get a waterside apartment from £129,995 with a projected rental yield of 9%.
Why we’ve included it: Liverpool is a historic port city and cultural hotspot on the Mersey, famed for its waterfront, music heritage and creative industries. Liverpool’s £5.5bn Liverpool Waters project is transforming the waterfront with new homes and commercial spaces. The city has a significant student population and a growing creative sector, particularly in areas like the Baltic Triangle, making it attractive for property investors.
In February 2025, the average house price in Liverpool saw a 9.3% increase from the previous year, reaching £174,000. The average private rent in March 2025 was £839, which was a 9.9% increase from the £764 average in March 2024. This yearly increase was higher than the 9.0% rise in the North West.
Why we’ve included it: Leeds is Yorkshire’s financial and legal centre, with a diversified economy spanning finance, tech and education. The city is undergoing substantial development, including the South Bank regeneration and the expansion of Elland Road stadium.
As a city with five universities, Leeds boasts a 60,000 strong student base and a great rental sector, presenting steady and attractive potential returns for property investors.
In February 2025, the average house price in Leeds had risen to £243,000, a 6.4% increase compared to the same month in 2024.The average private rent in March 2025 was £1,101, which was a 1.5% increase from £1,084 in March 2024.
Why we’ve included it: Known for its steelmaking legacy, Sheffield, is reinventing itself through “Green City” regeneration and advanced manufacturing. It is undergoing a significant £2.1 billion regeneration, highlighted by the recent Heart of the City II and West Bar Quarter developments, which are breathing new life into the city.
The presence of two prominent universities, coupled with a strong tendency for graduates to remain in the city, creates robust rental demand and promising growth opportunities for investors.
In January 2025, the average house price in Sheffield was £221,000, a 6.7% increase from January 2024. As of February 2025, private rents averaged £877, reflecting a 6.4% annual increase from £824 in February 2024.
Why we’ve included it: Nottingham is a key East Midlands university city, noted for its research institutions, gaming and tech cluster.
Nottingham boasts a robust rental market fueled by its large student population of over 45,000. The £650 million Broadmarsh redevelopment, is set to revitalise the city center with new residential and commercial properties making it a wonderful location for investors.
The average private rent climbed 7.2% to £962 in March 2025, compared to £897 in March 2024. In February 2025, the average house price in Nottingham saw a 5.1% increase from the previous year, reaching £194,000.
Why we’ve included it: As the North’s tech and media hub, Manchester has been undergoing numerous redevelopment projects such as the multi-billion Trafford Park masterplan and Salford Quays expansion.
Not only that but with a student population of 117,600 in Greater Manchester rental demand is consistently strong.
The average price in Manchester for a home bought with a mortgage was £246,000 in February 2025, up 6.9% from the same time last year, while average private rents reached £1,300 per month in January 2025.
Why we’ve included it: Glasgow is Scotland’s largest city, renowned for its vibrant cultural scene and growing service economy. Glasgow is undergoing revitalisation projects like the £1.13 billion City Deal, Collegelands, and The Ard.
The city’s large student population, over 115,000 strong, drives robust demand for rental properties, particularly in proximity to universities. On top of that, Glasgow’s commitment to sustainability and infrastructure improvements helps make it an attractive location for property investors.
In the year to January 2025, detached properties in Glasgow rose by 12.2% to an average of £490,000, while flats averaged £155,000. The average private rent price in March 2025 was £1,216, marking a 2.5% increase from £1,186 in March 2024.
Why we’ve included it: Edinburgh is Scotland’s capital and a UNESCO World Heritage city, second only to London as the UK’s financial centre.
Its large student base of over 55,000, helps guarantee steady rental demand. Significant developments such as the £2 billion West Town project, which will add 7,000 homes and improve infrastructure, further strengthen the city’s appeal as a top investment destination.
The average private rent price in March 2025 was £1,424, marking a 7.9% increase from £1,320 in March 2024. In February 2025, the provisional average house price in Edinburgh was £294,000, an increase of 8.4% compared to the previous year.
Why we’ve included it: Bristol is a thriving South West tech and creative hub, regularly ranked among the UK’s top cities for quality of life. Initiatives such as the Temple Quarter Enterprise Campus and the YTL Arena along with the city’s growing student base drive strong rental demand and the possibility of increasing property values.
Although Bristol’s average rent price stayed very similar, the average private rent across the South West region increased by 5.4% over the year to March 2025, to £1,754. The average house price however did increase by 6.8% to £362,000 in February 2025.
Our friendly and knowledgeable team can reduce your workload and stress. We provide comprehensive property management services, from leasing to maintenance.
Our experienced experts offer security and peace of mind through market fluctuations and readily available expert advice. Not only that but with our unique Monthly Payment Plans we take away the requirement for a large upfront deposit opening the door to more investors.
Contact us at +44 (0) 121 237 4610 or [email protected] for more information on our UK property developments and start expanding your investment portfolio.
