Best Places to Invest in UK Property in 2024

Average BTL Property Price: £129,172
Average Rental Yield: 7.44%
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. But with more affordable prices and a higher yield, Liverpool is our top pick for investing in 2024, and we’re not the only ones saying this. The Times also hailed Liverpool as the best place to invest in property this year.

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 top-ten 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 BTL Property Price: £134,245
Average Rental Yield: 7.45%
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.

However, with a slightly higher average property price, it could be more rewarding to pursue areas with more affordability and similar yields (such as Liverpool).

Average BTL Property Price: £183,628
Average Rental Yield: 6.10%
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.

Average BTL Property Price: £212,118
Average Rental Yield: 6.34%
Predicted Growth by 2028: 16.7%

As a general rule in the current UK property market landscape, the North of England can offer more affordable property prices, higher rental yields, and more promising capital growth forecasts than the South.

However, there are some exceptions, so if you have your heart set on a buy-to-let investment in the South, Southampton could be the way to go.

Although this city is on the smaller side, it seems to punch above its weight when it comes to the buy-to-let market. Due to high demand and potential rental income, Southampton’s rental yields are surprisingly high, with an average gross rental yield of 6.34%.

It’s worth noting that Southampton’s average house price is lower than the national average. However, property investors willing to look beyond the South will still find better value property in the North, as Southampton’s average property price is comparatively much higher than the other entries in this ranking.

The capital growth forecast for the region is also less sunny, coming in at 16.7%, while northern areas are predicted to reach over 20% growth by 2028.

Currently, the best places to invest in the UK for rental yields in 2024 are those in the North of England and Scotland. A rental yield over 7% is considered a very high yield and this can be found in cities such as Manchester, Glasgow and Liverpool. Don’t skip these cities if you’re looking for the best places to buy rental property in the UK.

Like most things, investment works best when you have one eye toward the future.

While there may be better places to buy investment property today, the following towns and cities are worth keeping an eye on.

Their stats are not yet on the level of the ten mentioned in this guide to the best places to invest, but the potential for growth and upcoming regeneration means they could very well be on their way to overtaking the top contenders in the coming years.

After all, who knows what tomorrow will bring? We think these areas of the UK have the potential to crack the top ten and become some of the best places to invest in UK property in the coming years.

Luton Property Investment

Ideal for those looking for a London commuter property outside of the capital, Luton is currently a popular destination for many first-time buyers in the UK and is definitively one to keep your eye on – especially for those investors looking for decent capital gains with a lower entry point.

With a solid regeneration plan in place, the town is looking to combat its housing shortage by building new homes to meet demand.

According to housesforsaletorent.co.uk, the average rent in London is £4,115 per month, while Luton comes in at £1,161.

Slough Property Investment

With a thriving economy, excellent growth rates, and fantastic transport links, Slough is an up-and-coming UK town growing more popular in 2024.

Another commuter town just outside London, Slough also enjoys a robust rental market due to demand from professionals wanting the Slough and London business scenes at a much more affordable price than the capital city.

The regeneration and economic schemes in place are also eye-catching.

Hull Property Investment

Hull is another up-and-coming UK hotspot for property investment. This Yorkshire city boasts an average property price of just £138,031 and offers an average rental yield of 7.03%, according to Zoopla.

After being named 2017’s Capital of Culture, over £1.5 billion worth of investment has been poured into the city over the past eight years.

Wigan Property Investment

Located in Greater Manchester, Wigan is an under-the-radar town that holds a lot of potential for property investment.

With its great positioning on the Manchester commuter belt and millions worth of regeneration coming into the town, Wigan also has a very affordable average property price of only £185,039, meaning you can target those commuting to Manchester for a far cheaper price.

These towns and cities have substantial ongoing regeneration efforts and could soon have the property stats needed to be some of the best places to invest in property in the UK in the near future.