In this article, I will share the ten best places to invest in property in the UK with the average price, average rental yield, capital gain prediction, and many more statistics to help you choose the best possible place to invest in property in the UK.
But first, you must understand how much you can afford based on your current financial condition and what amenities you want in your house. Because that can increase or decrease the price of the house you are about to buy. So let’s first discuss them and then the ten best places to invest in property in the UK.
How Much Can You Afford Now?
Before I share the best places to invest in property in the UK you must know how much you can afford to invest right now. Most of you might require a mortgage to purchase a home. You can use your credit score to get a mortgage. But first, can your current income support the EMI the banks want from you every month?
Look, my friend, like everyone, you also have other living expenses. With EMI payments, your financial condition could become worse. That is why the first question you need to ask is, am I capable of affording a house where I want? If not you can wait or move to the next city.
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What Kind of Property Do I Want?
After knowing your financial condition, you should also know what amenities you want in your house. These can affect the price. Reducing them can save you a lot of money. But you might don’t want to delete everything. So are things that you don’t want to remove.
- Flat or House: Independent houses can be more expensive than flats and with many responsibilities to maintain the house. What will you choose?
- New or Old House: Obviously, new homes are expensive. But they are ready to move. On the other side, the old house needs rehabbing. That is why you can get them for less price.
- Location: The part of the town you want to live in where traffic is low and has many local shops, doctors, and schools. There are some online property sites that can help you with those.
- Transportation: Are transport facilities with bus and metro good in the area, and how helpful is it, according to your personal taste?
- Other Amenities: Other amenities like the no of bedrooms, energy performance, amount of living space, internet speed, car parking facility, and the lawn may affect the price further.
When choosing a house, you need to consider all these. So that you can manage your finance and don’t suffer like everyone else who got stuck in the rat race.
Ten Best Places to Invest in Property in the UK
Now it’s time to find out the ten best places to invest in property in the UK and why with some mathematical statistics. First, the city of Birmingham, England.
1. Birmingham
A wonderful city in England. It has a reputation as a manufacturing powerhouse in the 18th century. The Birmingham Museum and Art Gallery are known to the world very well. Here is why you should invest in one of the best cities in the UK.
Birmingham City Averages
- Average Property Price: £214,500
- Average Rental Yield: 6.50%
- Price Growth (next five years): 20%
Best Areas for Rental Yields in Birmingham
- Nechells: 10.90%
- Aston: 6.00%
- Digbeth: 4.90%
- City Centre: 5.80%
- Perry Barr: 5.10%
Average Home Prices
- 2011: £132,500
- 2013: £136,500
- 2016: £165,500
- 2019: £190,000
- 2022: £214,500
Why Birmingham is the Best Property Investment in the UK
The city of Birmingham shows much strong evidence for investing as a sophisticated investor. Because of the following things.
- The rising population will hit 1.25 million in 2030.
- It’s the 3rd best city in the UK for new graduates.
- The young population is under 30,000 looking for rental properties.
- The average price of foreclosed homes has increased by £50,000 over the next five years.
- Attracting more skilled professionals.
- The city has world-class transport facilities. You can travel the whole city within an hour.
After all this data, tell me why investing in Birmingham is a good idea. I leave that to you.
2. Edinburgh
It is one of the best places to invest in property in the UK.The city is the home to Scotland’s crown jewels and the Stone of Destiny. It’s an old city with a lot of history. Here is why you should invest in one of the best cities in the UK.
Edinburgh City Averages
- Average Property Price: £316,800
- Average Rental Yield: 5.40%
- Price Growth: 18%
Best Areas for Rental Yields
- Granton: 6.4%
- Holyrood: 6.4%
- Corstorphine: 6%
Average Home Prices
- 2009: £183,000
- 2012: £200,500
- 2015: £234,400
- 2018: £237,100
- 2022: £316,800
Why Property Investment in Edinburgh is the Best
This amazing Scottish city is one of the best places to invest in property in the whole UK because of the following things.
- Savills report says the average price of homes will continue to rise to 24% in the coming years, which will be the 3rd highest in the UK.
- The city shows excellent price growth.
- It’s a desirable place for tenants and travelers.
- The place holds many historical places, like Edinburgh Castle, the Scottish National Gallery of Modern Art, the Royal Botanic Garden, and many others.
With these findings, the Scottish city of Edinburgh is one of the best places to buy a house.
3. Derby
The city of Derby is based on the banks of the River Derwent in Derbyshire. It has Derby Museum and Art Gallery for you to visit. Here is why the English city of Derby can be your best investment property.
Derby City Averages
- Property Price: £190,100
- Rental Yield: 6.10%
- Price Growth: 17%
Best Areas for Rental Yields
- East Derby: 3.60%
- South Derby: 3.70%
- West Derby: 3.45%
- City Centre: 4.30%
Average Home Prices
- 2011: £125,000
- 2013: £128,000
- 2016: £149,000
- 2019: £162,000
- 2022: £190,100
Why Derby City Can be the Best for Investment
It’s best for the following reason, as you can see.
- One of the most affordable cities in the UK, with just £190k.
- Young graduates are moving to the city for work.
- The average population is on the rise (current population 260,000).
- The property price will grow by 17% by 2026.
- The rental yield is attractive for investors.
Derby is becoming one of the best productive cities in the UK. You should take a part in it.
4. Leeds
The city of Leeds holds the title of the Royal Armouries and houses the national collection of arms and artillery. It’s a famous place for the people of England. Here is what the average data looks like.
Leeds City Averages
- Average Property Price: £233,100
- Average Rental Yield: 5.70%
- Price Growth: 15.5%
Best Areas for Rental Yields
- Horsforth: 4.10%
- Farsley: 4.70%
- City Centre: 7.70%
- Headingley: 7.50%
Average Home Prices
- 2011: £140,000
- 2013: £142,000
- 2016: £171,000
- 2019: £190,000
- 2022: £233,100
Why Leeds is the Best Property Investment
- More homes are on rent than ever.
- Over 68,000 young student population.
- The population has grown exceptionally in the last decade.
- Home demand is on the rise.
- Employment is also on the rise year on year.
- Research says by 2026, the price of forecasted properties will grow by 21%.
These metrics are enough to invest in the city of Leeds.
5. Manchester
The city of Manchester is a famous place all over the world, mostly because of its football team, Man City. Here are the average prices look like in this highly demanded city.
Manchester City Averages
- Property Price: £189,200
- Rental Yield: 5.0%
- Price Growth: 17%
Best Areas for Rental Yields
- Greater Manchester: 7.90%
- South Manchester: 9.50%
- City Centre: 6.60%
- Salford: 7.0%
- Stockport: 5.48%
Average Home Prices
- 2011: £123,000
- 2013: £125,000
- 2016: £156,000
- 2019: £184,000
- 2022: £189,000
Why Manchester is the Best Property Investment
- One of the largest economies in the UK.
- Property prices have increased by 20%.
- One of the highest price growth in the UK at 17%.
- Over 100,000 young students are ready for rent.
- Quality employment opportunities are on the rise.
No one will say, I don’t want to live here if they can afford it. A wounder city to spend your remaining days.
6. Glasgow
Glasgow is one of the best cities in Scotland with art architecture, a rich legacy of the city’s 18th–20th century, and shipbuilding. Here is what the city offers you for investment.
Glasgow City Averages
- Property Price: £205,000
- Rental Yield: 5.50%
- Price Growth: 17%
Best Areas for Rental Yields
- Govan: 7.60%
- Cardonald: 6.30%
- Shettleston: 5.90%
- Cumberland: 5.0%
- Thornwood: 4.70%
Average Home Prices
- 2011: £114,000
- 2013: £109,000
- 2016: £119,000
- 2019: £138,000
- 2022: £205,000
Why Glasgow is the Best Property Investment
- The city is incredibly affordable in the UK market.
- The 4th largest economy in the UK.
- Property prices have risen by 15% year on year.
- One of the biggest student centers with an incredible campus.
- A solid development pipeline of residential property.
If you love to live in a city which is as good as Glasgow, it’s for you. The population is going to double in the next decade.
7. Sheffield
The city is known for Kelham Island Museum, which covers the city’s industrial heritage. Here is what the average data looks like.
Sheffield City Averages
- Property Price: £216,000
- Rental Yield: 4.50%
- Price Growth: 15%
Best Areas for Rental Yields
- East Sheffield: 5.2%
- Rotherham: 3.5%
- North Sheffield: 5.6%
- City Centre: 5.6%
- West Sheffield: 4.1%
Average Home Prices
- 2011: £127,000
- 2013: £130,000
- 2016: £153,000
- 2019: £168,000
- 2022: £216,000
Why Sheffield is the Best Property Investment
- Over 68,000 young students population.
- Two famous universities.
- Predicting more new jobs over the next five years.
- Rental yields are achieving up to 7%.
- Property prices will rise by 2024.
A good place for a property investment if you are looking for the long term.
8. Liverpool
Liverpool does not need any more introduction. It is one of the best places to invest in property in the UK. Don’t doubt that. It’s famous all over the world for film shooting and football. The city offers something like this.
Liverpool City Averages
- Property Price: £190,100
- Rental Yield: 4.8%
- Price Growth: 17%
Best Areas for Rental Yields
- Norris Green: 6.60%
- Kensington: 6.0%
- Edge Hill: 9.75%
- City Centre: 5.50%
Average Home Prices
- 2011: £108,000
- 2013: £109,000
- 2016: £121,000
- 2019: £137,000
- 2022: £190,100
Why Liverpool is the Best Property Investment
- A global hotspot for business start-ups.
- World-renowned amenities for residents.
- Large-scale developments are happening.
- Property price is growing, despite the economic trouble.
- Over 80,000 young students are looking for rental homes.
If you are investing in the UK, you can not miss Liverpool. That’s what the city offers.
9. Newcastle
The city of Newcastle is known for its football fans. During the Industrial Revolution, it was a major shipbuilding and manufacturing hub in the UK. The data looks like this.
Newcastle City Averages
- Property Price: £215,500
- Rental Yield: 5.3%
- Price Growth: 9%
Best Areas for Rental Yields
- East Newcastle: 7.75%
- Jesmond: 4.7%
- Gosforth: 3.20%
- City Centre: 5.3%
- Benton: 7.75%
Average Home Prices
- 2011: £138,000
- 2013: £143,000
- 2016: £159,000
- 2019: £169,000
- 2022: £215,500
Why Newcastle is the Best Property Investment
- New start-ups are on the rise in the city, attracting young professionals.
- Home to large national brands.
- Over 50,000 young students are looking for a home.
There is no doubt that Newcastle is one of the best places to invest in property in the UK, and you can make it more important by investing here
10. Nottingham
The city of Nottingham is the city of the Robin Hood legend. The city has been rebuilt many times since the medieval era. Today the average price of homes is like this.
Nottingham City Averages
- Property Price: £230,600
- Rental Yield: 5%
- Price Growth: 20%
Best Areas for Rental Yields
- Long Eaton: 4.0%
- North East: 7.30%
- Sneinton: 7.85%
- Beeston: 6.75%
- West Bridgford: 4.90%
Average Home Prices
- 2011: £104,000
- 2013: £100,000
- 2016: £127,000
- 2019: £146,000
- 2022: £230,600
Why Nottingham is the Best Property Investment
- More than 70% of the population is young.
- Massive student population by two city-center universities.
- Houses the Queen’s Medical Center is here.
Nottingham is a historical place that needs not an extra introduction. Your investment will never go to waste if you choose this city.
Please note
All the data about the best places to invest in property in the UK in this article are taken from various internet sources, which may vary over time. We recommend you do the due diligence by yourself. So that you can know the current market condition of each city. It is your choice where to invest. We are not recommending anything.
Last Words
So now you know those ten best places to invest in property in the UK with the requirements to buy a house and some statics to help you make the decision better. I hope you will choose the best city. Share it with your family who might need it. See you soon.
