Where are the 10 best places to invest in property in the UK?

Are you in the market for property investment? Then you should keep on reading. The UK is a great place to invest in property, and the prospects are only getting more impressive. In this blog, we’re answering the question, where are the 10 best places to invest in property in the UK?

Why invest in UK properties? 

There are many reasons to invest in properties, and here are just a few of them. 

• Potential for a great return on your investment 
• Allows you to build wealth gradually 
• Provides financial security 
• Ability to create an impressive portfolio 
• Access tax benefits 
• Increase capital growth
• Great average rental yields
• Consistent tenant demand & strong rental market
• Ability to gain a high rental income 

Working with a property management company can help you experience the benefits of investing in UK properties. 

At Parello, we offer seamless property management to all landlords. We understand how busy life can be when you’re a landlord, and we’re here to make life easier for you. 

We support Manchester landlords with management and property investment sourcing as we recognise the value that this can bring you. 

We have over 30 years of experience in supporting landlords, so you can count on us for all of your landlord needs. 

Top 10 places to invest in property in the UK

Many major UK cities have affordable property prices and high rental yields. Remember that house prices can fluctuate based on many factors. It's good to compare the average investment property cost to the national average. 

Manchester 

Manchester has long lived up to its nickname as the ‘Northern Powerhouse’ thanks to its impressive redevelopment over the years. 

It has an estimated population of over 2.5 million, and the average property costs around £230,000. According to the ONS, the average rental cost is £1200 per month, making Manchester properties a great investment. 

Manchester is home to several universities, so it’s a popular location for young professionals. Additionally, Manchester has been recognised as an excellent place for families to live, with plenty of exciting activities to enjoy throughout the year. 

The average rental yield in Manchester is 6.22% and the Manchester average property price is great. This is a reflection of the city's rapidly growing economy. 

London

People who are looking to invest in London properties may be better off looking in the wider area rather than the City of London itself. Many property investors are finding that the cost of purchasing buy to lets is outweighing the benefits of renting the property out. 

The average rental yield in Central London is currently 3.5%, and the average house price is £750,000. 

While London may not currently be the best opportunity for investment, it does have potential. Always speak to an investment company before you make any decisions. 

Edinburgh 

Edinburgh is a great city with a lot going on for people of all ages. Because of this, it has been a popular place for investors to expand their rental portfolio. 

Edinburgh has a higher average for monthly rental costs, coming in at around £1,300. The average property price is around £325,000. The average rental yield in Edinburgh is 8.18%, making it an excellent place to invest. 

Many people have chosen to relocate to Scotland, and Edinburgh is a popular location for them. 

Sheffield

Sheffield has undergone a lot of development work, and there are no signs of it slowing down. The average property price in Sheffield is around £215,000, and the average monthly rent is £830. 

Sheffield has a population of around 750,000 and is a popular place to live for students, young professionals, and families. By investing in Sheffield properties, you can expect a rental yield of around 4.7%. 

Liverpool

Liverpool is a great place for property investors to consider. With an estimated population of over 900,000, it is a popular place for people of all ages thanks to its fantastic city and lots of exciting things to do. 

In Liverpool, investors can expect property prices of around £175,000. The average monthly rental cost is around £775, and the rental yield is around 5.3%. 

Leeds

Leeds has also undergone many improvements to the city centre and surrounding areas. At the moment, around 800,000 people live in Leeds. It is home to a number of universities, which makes it a popular option for students and young people. 

The average property in Leeds costs around £234,000, with an average monthly rental cost of £1100. The rental yield sits at around 5.6%, which is impressive for those looking for a great return. 

Birmingham 

Birmingham is a popular place to call home, with many positive investment opportunities for those looking to build their property portfolio. An estimated 860,000 currently live in Birmingham. 

The Birmingham average property price is around £228,000, and monthly rent is roughly around £990. The average rental yield is 5.2%, which offers great investment returns. 

Newcastle 

Newcastle is a great city with plenty of places to explore. It is popular among people of all ages. The average property price in Newcastle is around £193,000, and monthly rental costs come in at around £980. 

The rental yield is 6.13%, making this a popular place to invest in a buy-to-let property.

Glasgow 

Glasgow is another popular place for investors thanks to its impressive rental yields of around 8.18%. In Glasgow, the average property costs £174,000, and the average rent is around £1,187 per month. 

Nottingham 

Nottingham has seen much growth in recent years and currently has a rental yield of around 5.7%. The average property price is around £192,000, and monthly rental payments are around £900. 

Why you should invest in Manchester

We support all property investors and landlords with Manchester property investment, and here’s why we think this is a great location for your business. 

• Rapidly growing population in and around the City Centre
• Great opportunity to increase capital growth in a local property market
• Incredible employment opportunities
• Affordable place to purchase a property with a robust rental market
• Impressive rental yields
• Diverse economy in the North West
• Fantastic city development & transport links
• Home to many major universities and young professionals - ideal for a rental property
• Strong rental demand compared to other major UK cities

With universities nearby, Manchester is a safe and secure option for your property investment, as rental demand is high. With a great company like Parello on hand, we can ensure a consistent stream of tenants for your rental properties. Read more about why now is the time to invest in Manchester.

Are you interested in expanding your property investment portfolio in Manchester? Contact our friendly team today to see how we can help with the UK property market.