Best Places to Invest in Property UK: Where the Market Is Moving

Northern Ireland: Affordable with Real Growth Potential

Northern Ireland continues to lead for house price growth, but it still offers excellent value. In 2024, it recorded the UK’s highest increase in average property price, and the momentum hasn’t faded. Belfast, in particular, is attracting a mix of buyers and renters, thanks to its cultural appeal and expanding jobs market.

The rental market is well-supported by two major universities and a growing number of young professionals seeking high-quality housing near city centres. Investors are reporting strong rental yields, especially on well-located apartments and family homes near key transport routes.

Why it’s a standout:

• 9% house price growth in 2024
• Entry prices remain below the UK average
• High demand in Belfast, Derry and commuter towns
• Strong rental values near university districts
• Regeneration projects and improved transport infrastructure

For long-term capital appreciation and reliable yields, Northern Ireland remains a top-tier option.

North East: Undervalued, with Room to Rise

The North East is still one of the most affordable places to invest in property across the UK. Average property prices here are significantly below the national average, but rental demand is growing, particularly in Sunderland, Newcastle and Middlesbrough. This region is seeing increasing attention from both homebuyers and investors looking for value and growth.

Recent regeneration projects and investment in local industries, such as the Advanced Manufacturing Park near Sunderland, are creating new job opportunities and driving demand for rental accommodation. The student population also keeps the rental market moving year-round in university towns like Durham and Teesside.

Why investors are paying attention:

• Affordable property prices and low barriers to entry
• High rental yields in urban centres and student areas
• Economic growth linked to tech, manufacturing and logistics
• Excellent transport links and infrastructure upgrades
• Steady population growth and increased demand

For property investors looking to enter the market with a lower initial outlay and a focus on rental returns, the North East is hard to beat.

North East: Undervalued, with Room to Rise

The North East is still one of the most affordable places to invest in property across the UK. Average property prices here are significantly below the national average, but rental demand is growing, particularly in Sunderland, Newcastle and Middlesbrough. This region is seeing increasing attention from both homebuyers and investors looking for value and growth.

Recent regeneration projects and investment in local industries, such as the Advanced Manufacturing Park near Sunderland, are creating new job opportunities and driving demand for rental accommodation. The student population also keeps the rental market moving year-round in university towns like Durham and Teesside.

Why investors are paying attention:

• Affordable property prices and low barriers to entry
• High rental yields in urban centres and student areas
• Economic growth linked to tech, manufacturing and logistics
• Excellent transport links and infrastructure upgrades
• Steady population growth and increased demand

For property investors looking to enter the market with a lower initial outlay and a focus on rental returns, the North East is hard to beat.

Midlands: Balanced, Reliable and Still Rising

The Midlands continues to strike a rare balance between capital growth potential and solid rental yields. Cities like Birmingham, Leicester and Nottingham are seeing steady property price growth and remain highly attractive to both domestic and international investors.

With major regeneration schemes underway, such as Birmingham’s transformation around the Smithfield area and Digbeth, demand for rental properties is being driven by new jobs, better infrastructure and a diverse economy. The Jewellery Quarter and other city centre hotspots are proving especially popular with young professionals and graduates staying post-university.

Why it’s ideal for balanced investment:

• High demand from students, professionals and families
• Large student populations in all three major cities
• Regeneration projects improving long-term value
• Affordable property prices compared to London or the South East
• Strong average rental yield and consistent tenant demand

If your investment strategy is focused on medium to long-term performance with good upside, the Midlands offers both resilience and growth.

South West: Lifestyle Meets Long-Term Stability

The South West remains one of the most popular regions for lifestyle-led moves, and that’s continuing to support the property market in towns and cities like Exeter, Bath, and Bristol.

While property price growth in this region has slowed from the highs of 2021, the fundamentals remain strong. The area benefits from green spaces, a strong cultural scene, and increasing remote working opportunities, which together drive demand for both purchases and rental accommodation.

Buyers relocating from London and the South East continue to fuel demand, especially in areas with excellent transport links. Meanwhile, the average rent in cities like Bristol has increased faster than wages, a sign of huge demand and constrained supply.

Why the South West still appeals:

• Consistent rental demand in university and commuter cities
• Tourism adds seasonal income potential in coastal locations
• Strong capital growth over five years, even with recent cooling
• Good balance of city amenities and quality of life
• Lower supply of new homes, supporting price resilience

The South West may not offer the highest yields, but for long-term capital appreciation and low vacancy rates, it still stands strong.

Manchester, Leeds and Liverpool: Urban Energy and Strong Rental Demand

These three cities consistently rank among the best places to invest in property UK-wide, and for good reason. They combine scale, rental growth, and capital appreciation potential, and they’re all still growing.

Manchester’s Knowledge Quarter and Liverpool’s Baltic Triangle are buzzing with activity, while Leeds is benefiting from the South Bank development and rising demand for modern living spaces in and around the city centre. Platforms like Zoopla can help investors track rental yields, property values and demand levels in these fast-moving urban areas.

Why these cities remain top picks:

• Average yields remain above 5% in key neighbourhoods
• Strong rental demand from students and young professionals
• Major regeneration projects driving future price growth
• Growing populations and job opportunities in finance, media and tech
• Consistently high performance in UK property investment rankings

For investors targeting urban rental properties with year-round demand and ongoing development, these cities continue to deliver.

Commuter Towns: High Yield and Lower Entry Costs

As buyers look beyond the city for more space and affordability, commuter towns across the UK have stepped into the spotlight. Places like Swindon, Wolverhampton, and Wrexham are drawing attention thanks to improved transport links, better access to local amenities, and much lower average property prices than their city counterparts.

Hybrid working is now firmly established, which means tenant demand in these towns isn’t just a short-term trend. We’re also seeing a rise in young families and first-time buyers priced out of nearby cities, all of which support the rental market and create longer tenancy cycles.

Why commuter towns are increasingly attractive:

• Strong rental returns relative to property value
• Population growth and inward migration from nearby cities
• Ongoing regeneration and infrastructure investment
• Less competition than high-profile urban hotspots
• Steady price growth with room for further gains

For investors looking to enter the market affordably while capturing growth potential, commuter towns offer one of the most promising routes in 2025.

Key Factors to Watch Before You Invest

Choosing the best place to invest in property is about more than price alone. Look at:

• Current tenant demand and average rental yield
• Growth potential supported by infrastructure and economic development
• Proximity to major employers, green spaces and universities
• Local amenities and long-term regeneration plans

At Hometrack, we’ve seen how quickly rental markets can shift. The investors making the best decisions are using live data, not gut instinct.

Final Thoughts: Let the Data Lead

Property investment in 2025 is no longer about buying where everyone else is buying. It’s about seeing where the next wave of demand is forming and aligning your strategy accordingly.

Regions like Northern Ireland and the North East are emerging as real contenders. The Midlands and commuter towns continue to offer excellent returns. And the major UK cities still provide unmatched energy, job opportunities and rental demand.

At Hometrack, we’re helping investors track what’s changing, and where the smart investment opportunities are taking shape. From rental growth to property price trends, we provide the insights that drive better, more informed decisions.

Explore the Hometrack Data Hub or speak to our team to find out how data can support your investment strategy this year.