Hi Everyone.

Buying a property in the right area is by far the quickest way to make money.

Like if you had one strategy, then this is by far the best strategy to follow.

You may be thinking, ‘That’s obvious’.

Yes it is.

But many new investors make that rookie mistake by allowing their budget to dictate where they should make their initial investment.

But I would say it’s more important to understand why these cities are showing considerate growth and how they are projected in the next few years then just what your capital is like……….to a certain degree.

My point being, if waiting and raising more capital to invest in a better area is the better option and may take you 8 months, then best waiting.

So in today’s article, we’re going to discuss the 5 best areas to invest in the UK and see what the data tells us.

And the fifth area for me is the wild card, in which the data actually looks promising compared to how it used to stack up in previous years.

Let’s dive in.

Buy-To-Let Mortgage Rates

OTHER NEWS

1. Buying a property is now cheaper than renting

   First-time buyer mortgage payments (£1,038 per month) are 20 per cent lower than rents (£1,248 per month)

2. Planning and Infrastructure bill

   Plans are underway to get Britain building again and deliver economic growth.

3. Mortgage products are changing quite frequently

   Lenders are reacting to current financial situations.
   

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5 Best Cities to Buy A House In 2025

So a client has approached me last week and is looking to invest in a property and wants a report with some of the best areas in the UK.

So I thought this be a great opportunity to bring some really insightful information to the readers also.

The UK property market in 2025 shows promising regional variations, with northern cities and the Midlands outperforming southern locations.

Our data analysis reveals compelling investment opportunities across five key cities, each with distinct advantages for strategic property investors.

Manchester…… Yield Champion

Manchester delivers the UK's most impressive rental yields, averaging 6.5% city-wide—significantly outperforming the national average of 4.75%.

With property prices averaging £230,967 and monthly rents at £1,267, the investment case is one that really is beating the rest.

The highest-performing areas show exceptional returns:

• Openshaw (M11): 7.6% yield, average price £193,548

• Ordsall (M5): 6.9% yield, average price £213,886

• Blackley (M9): 6.8% yield, average price £188,206

Supporting this growth, JLL projects rental increases of 4% annually until 2027, while Greater Manchester's economic plan will create 90,000 new jobs.

The Old Trafford regeneration project alone is expected to add £7.3 billion to the local economy.

Savills forecasts an impressive 30% property price growth in the North West between 2025-2029, making this region a clear leader for both capital appreciation and yield.

Leeds……Student Market Powerhouse

I’ve been talking about Leeds if you’ve been following for a few weeks and the work that is going on up their, so it’s no surprise that I place this city among this list.

Leeds offers compelling yields between 5-7% in areas like Headingley, Burley, and the city center.

The construction sector is thriving, with 4,441 homes built in the year to March 2024—35% above local targets, indicating strong market confidence.

Property prices are projected to rise 3-5% by 2025, with particular strength in Holbeck and South Bank areas due to targeted regeneration.

Average monthly rent stands at £1,097 (a 3% annual increase), with flats/maisonettes seeing even stronger growth at 3.5%.

The £350 million South Bank Development, creating 35,000 jobs and significant housing, strengthens the long-term investment case in this university city with consistently strong student housing demand.

Birmingham…… Growth Leader

Birmingham really fascinates me.

You know when you hear friends and business investors talk highly of Birmingham, it does leave you wondering what are the data supporting this.

Birmingham has delivered exceptional historical performance, with prices increasing 66% over the past decade.

Which is stunning.

Looking forward, projection also looks great.

Further growth is expected of 19.9% from 2024 to 2028—an average annual rate of 3.7%, the highest sustained rate predicted across UK cities.

Some big arrivals have also played a huge role.

The corporate landscape has been transformed by the arrival of major employers including Goldman Sachs, BDO, and HSBC, creating a solid employment base.

This economic foundation is bolstered by landmark developments including the Octagon tower (completing in 2025), the £1.9 billion Smithfield redevelopment, and the £2.2 billion Ladywood Estate regeneration.

The ongoing HS2 development will further cement Birmingham's connectivity advantages, making it an increasingly attractive option for both investors and tenants looking beyond London.

Derby…… Emerging Opportunity

Derby represents an opportunity to enter a market before its peak growth phase. The city leads East Midlands property projections with forecast price increases of 3.2% annually until 2028, for a cumulative growth of 13% over four years.

These projections are supported by significant demographic trends—the population is forecast to increase by 50,000 over 15 years against a current rental stock of just 17,800 properties.

This is a huge opportunity awaiting for investors and has to be noted.

As rental demand continues to grow, investors can expect to see rents across Derby increase, thereby improving yields beyond current levels.

This combination of capital appreciation and yield growth makes Derby worth serious consideration.

London……The Wild Card

Ok, it’s pretty obvious that London is overpriced and your budget significantly has to be quite high to invest in London from the latest average house prices.

But London is the capital city and you may not want to have that instability of having a property you own 250 miles across the UK.

And that’s understandable.

But it’s not just for that reason I chose London as the wild card.

After a cautious period, London's property market is demonstrating remarkable resilience and growth in 2025.

Recent data shows a significant 17% year-on-year rise in property inquiries alongside a 12% increase in housing stock availability, representing the biggest surge in a decade.

The city has recorded 13% growth in new buy-to-let landlords between 2023-2024, compared to just 4.11% growth the previous year.

London's rental market presents compelling data for income-focused investors. Annual rental growth across prime London increased to 2.5% in December 2024, continuing a trend of low but steady growth.

London's diverse economy and world-class educational institutions continue to attract a steady influx of professionals and students, ensuring consistent rental demand.

So this is my wild card because even though its steady, London is showing growth and this can’t just be ignored.

BOTTOM LINE

I began this article with the statement:

“Buying a property in the right area is by far the quickest way to make money.”

I stand by that because the data clearly shows market movements in cities outside London, showing significant growth presently and for the future.

If this seemed complicated before, I hope the examples in this article have helped clarify why certain UK cities are showing strong investment potential.

We’ve covered areas with low entry points, high yields, and strong growth projections. And if London is your preference, there are still positive trends to explore there too.

The opportunities are there—so be bold with your next investment and better to wait for the right area.

I hope the insights we’ve discussed bring confidence and optimism for 2025.

TO DO LIST

✅ To Read - Latest Halifax index data are out with house prices dipped by -0.1% in February (vs +0.6% in January).

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