The UK property market in late 2024 has been shaped by economic stabilisation, urban regeneration projects, and strong rental demand, making it an attractive time for property investment. But what about 2025?
If you're looking to invest in buy-to-let property in the UK, starting at number 10, is a list of key market trends and predictions for the best places to check out:
10. Bristol
Strong tech and creative sectors, coupled with a growing population, support robust rental yields.
9. Edinburgh
High demand for short-term lets and cultural appeal make it a profitable market for holiday and student rentals.
8. Glasgow
Growing rental demand fuelled by its vibrant economy and expanding infrastructure.
7. Nottingham
Increasing popularity among investors for its affordable prices, university population, and steady rental demand.
6. London
Consistent demand ensures stable returns, with yields highest in commuter towns and up-and-coming boroughs like Tottenham and Canada Water.
5. Sheffield
Affordable entry points and regeneration projects support rental yields of 4.5% and predicted price growth of 11.7% by 2027.
4. Leeds
High yields in areas like Woodhouse (9.5%) and Headingley (8.2%). The city benefits from economic diversification and infrastructure upgrades.
3. Liverpool
Affordable property prices and growing rental demand offer yields of up to 8%, with consistent growth in urban area.
2. Birmingham
Regeneration and business relocations drive demand, with rental yields of around 6% in central areas. The development of HS2 is expected to enhance connectivity.
1. Manchester
Known for its economic growth, strong rental yields (up to 9.5%), and population increase. Major regeneration projects like MediaCityUK enhance its investment potential.
For 2025, focus on cities with ongoing infrastructure projects and economic growth, such as Manchester, Leeds, and Birmingham. These offer a mix of high rental yields and long-term capital appreciation. Diversifying into affordable emerging markets like Sheffield or Nottingham could also balance potential risks and returns.
Sources:
Property Reporter UK
ONS
Zoopla