Best Places to Invest in UK Property in 2024 (2024)

Average Property Price: £240,485
Average Rental Yield: 7.62% (gross)
Predicted Growth by 2028: 20.2%

Manchester has been one of the most popular places to invest in property in the UK over the last five years, and for a good reason.

A report from Zoopla found that the ratio between supply and demand in Manchester is causing rents to rise rapidly, making its rental growth the second-fastest in the UK behind London – a whopping 14.8%. This makes Manchester arguably one of the best places to buy a rental property in the UK right now.

This is a testament to the popularity of Manchester among renters, but it also points to an extreme supply-demand imbalance in the city.

The city has a substantial student population and an above-average graduate retention rate, meaning there’s also a large potential pool of young professional renters to target.

Voted the UK’s best place to live by the Global Liveability Survey, the Manchester property investment market is filled with world-class investment opportunities and unrivalled market demand.

Oxford Economics cites Manchester as a “major city region” driving UK growth and prosperity, meaning 2024 may be the perfect time to invest and take advantage of the city’s massive buy-to-let potential.

Prices skyrocketed during 2022, hitting a yearly change of 12.1%, per Land Registry data. The UK property market was generally subdued during 2023.

However, Manchester’s growth remained resilient until the end of 2023, seeing an average property price of £240,485 – a rise of 5.6% compared to the previous year.

Average Property Price: £179,129
Average Rental Yield: 6.60%
Predicted Growth by 2028: 20.2%

A mainstay on anyone’s list of the best and most affordable places to invest in property in the UK, Liverpool has had a meteoric rise similar to Manchester’s.

Previously a city suffering from economic decline, UK regeneration has helped transform Liverpool into the economic powerhouse you see today. Liverpool has become a significant player as a UK city, but average property prices remain well below the national average.

According to Zoopla’s latest ranking of best buy-to-let cities, Liverpool has one of the highest average gross yields in the country for a buy-to-let property. It is one of the few major cities on Zoopla’s list, sure to make it attractive in the eyes of property investors.

Liverpool can also offer property investors a wealth of diverse opportunities. For example, it’s a top UK destination for students, with three city centre universities and a population of around 70,000, according to LJMU.

This combination of growth potential and desirability as an area of residence and currently low prices makes Liverpool a property investment oasis in the presently subdued UK property market.

Liverpool property investment is a top choice for many – with the city being one of the most affordable on this list and essentially leading the charge regarding house price growth.

According to the UK House Price Index, Liverpool has beaten out some of the UK’s largest cities in terms of capital growth. The area showed good growth in 2022, reaching a yearly change of 12.1% in December, and the average property price has grown by over £50,000 in just a few years since January 2020. The UK property market as a whole has been sluggish over the past year, with some cities registering negative growth. However, Liverpool has bucked this trend and avoided price falls, with a yearly growth of 1.6%.

However, rents have not risen at the same rate as house prices, meaning the overall average rental yield in Liverpool is lower than in other cities. Nevertheless, investors are likely to see a high ROI combined with affordable prices, making it more likely you will see substantial returns.

Factoring in a young city centre population (75% are aged 17 to 29) and rental prices set to rise in 2024, private landlords can make a top purchase in Liverpool.

Average Property Price: £179,386
Average Rental Yield: 7.61%
Predicted Growth by 2028: 20.2%

Glasgow is another major city that ranks highly for average rental yields in the UK.

Glasgow property investment offers a great investment opportunity in 2024. Boasting the largest economy in Scotland and the fourth-highest in the UK, Glasgow has a rapidly expanding population of young professionals and students – with over 60,000 of the latter.

The future also looks bright for Glasgow with expansions to its transport links, including a “game-changer” metro system to accompany the subway that loops around the city.
Combine this with affordable prices and high rental costs, and you can find surprisingly high rental yields in Glasgow.

Since 2020, the average price of properties in Glasgow has grown by more than £40,000. While growth has been sluggish recently, house prices in Glasgow have risen by 1.4% compared to last year, and the future looks bright for Scotland’s house prices. However, be aware that the legislation surrounding property acquisition in Scotland differs from that of England and Wales.

Average Property Price: £199,699
Average Rental Yield: 6.67%
Predicted Growth by 2028: 21.4%

A top UK property investment location thanks to significant returns and low prices, Newcastle is a smart choice for investors considering where to invest in 2024.

Boasting some of the highest rental yields in the UK, Newcastle offers a bustling student population with excellent employment opportunities.

Home to around 50,000 students at the University of Newcastle and Northumbria University collectively, plus the UK’s most prominent modern business park, the income potential is fantastic with Newcastle property investment.

The city also boasts solid capital growth, with a five-year price increase of over 23%. While Newcastle previously struggled to achieve strong growth, this turned around in 2021, and ever since, the city has seen prices rise steadily.

This combination helps to make the city one of the best places for UK property investment in 2024.

Average Property Price: £168,953
Average Rental Yield: 6.24%
Predicted Growth by 2028: 20.2%

It’s easy to fall into the trap of focusing on the UK’s largest cities for a rental investment, but dig a little below the surface, and you’ll find some absolute property gems.

This city in Northern England may not get the attention of London, Liverpool, or Manchester, but its underlying stats suggest it should rank amongst them as one of the best places to invest in property in the UK.

The city boasts highly affordable property with some of the highest rental yields in the UK, with the average house price in Preston being over £100,000 lower than the national average, per Land Registry data.

The future looks bright, with massive regeneration efforts ongoing, including £435 million in infrastructure development. Preston will continue to see rising demand and capital gains in 2024 and beyond.

Preston was previously identified as a top ten student property hotspot by mortgage lender Paragon Bank.

When it comes to capital appreciation, Preston may have lagged behind in the past, but there have been signs of good potential in recent years. Preston property continued to grow in value this year, and the average price has risen by £40,000 since 2020. According to Savills, The North West region is likely to experience one of the highest capital value appreciations in the UK.

Average Property Price: £231,429
Average Rental Yield: 7.24%
Predicted Growth by 2028: 20.2%

If Northern investment isn’t for you, Birmingham is likely right up your street when considering some of the best places to invest in the UK.

Credited as the UK’s second city, Birmingham is located in the West Midlands and has all the characteristics needed to provide some solid property investment opportunities.

The city also has a relatively young population, about 40% under 25 and 64% working age – 2% higher than the national average.

Zoopla reported last year that Birmingham had one of the steepest rental growths in the country, hitting 11.6%. With significant regeneration efforts like the Big City Plan, average rents will continue to rise, making Birmingham an excellent choice if you want to know where to buy property.

The city has also seen considerable growth over the past few years, helping to make it one of the best places to invest in property in the UK for 2024. Birmingham has experienced modest price growth in the past year while many other cities saw prices fall. Since 2020, Birmingham’s average house price has risen by over £40,000.

However, Birmingham is pricier than many areas on this list, and cheaper property can be found more readily in the North of England compared to the Midlands.

To learn more, take a look at our Birmingham property investment guide.

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Average Property Price: £243,913
Average Rental Yield: 6.96%
Predicted Growth by 2028: 20.2%

With an average property value of £243,913, Leeds is a bit pricier than other places on this list, but don’t be fooled – this Yorkshire city is well worth its entry price.

Rental properties have seen massive demand in Leeds thanks to its incredible employment opportunities.

Boasting the second-largest banking and finance sector in the UK and acting as the UK’s largest centre for law, Leeds is overflowing with business opportunities in 2024.

Institutions and organisations like Leeds Teaching Hospitals NHS Trust, Jet2, First Direct and Channel 4 all call the city home, which has since attracted thousands of aspiring young professionals.

It’s also a popular student destination, boasting four major universities – the University of Leeds, Leeds Trinity College, Leeds City College, and Leeds Art University.

Leeds is also set for historical growth from regeneration efforts, with the ongoing South Bank Leeds project set to double the city centre’s size by creating 35,000 new jobs and 8,000 new homes.

Thanks to the great employment opportunities and regeneration efforts, Leeds has seen house prices rise substantially, with over £50,000 added to the average property price since 2020.

It may be worth giving Leeds property investment a chance if you are wondering where to buy property in the UK in 2024.