Uncover the Best Places to Invest in the UK
Our expert-led research goes beyond surface-level trends. We’ve rigorously assessed key market indicators, including:
- Rental Yields & Capital Growth: The balance between immediate returns and long-term value appreciation.
- Tenant Demand & Population Growth: Understanding where the market is most active and poised for future expansion.
- Economic & Infrastructure Development: Identifying areas benefiting from major investment, new transport links, and employment opportunities.
This data-driven approach has allowed us to identify the UK’s most promising investment hotspots for 2026, from established powerhouses to exciting, emerging locations. Our list of top investment cities includes:
Manchester | Birmingham | Bradford | Leeds | Leicester | Liverpool | Derby | Bristol | Hull | Glasgow | Nottingham | Newcastle | Sunderland
We delve into each of these locations to provide you with the insights you need to make an informed investment decision. Here is our complete overview of the best UK property investment areas for 2026.
Click on locations on the map to explore more!
Nottingham
Sunderland
Hull
Invest in Manchester in 2026 for Regeneration
Greater Manchester is a prime location for investment, boasting an average rental yield of 5.61% that outperforms other major UK cities. This is largely due to ongoing large-scale regeneration projects.
- Victoria North: The city’s biggest regeneration project will deliver 15,000 new homes across seven new neighbourhoods, with the first social rented homes and private apartments completed by 2026. The project includes the new City River Park, which will add 46 hectares of green space.
- Northern Quarter: A disused multi-storey car park is being redeveloped into a sustainable neighbourhood with 300 new homes, four new public squares, and green spaces.
- East Village: This development has the potential to add 1,400 new homes and over 18,000 sqm of commercial space, with 40% of the site dedicated to green public space.
Invest in Manchester in 2026 for Transport
Manchester’s transport network is undergoing a major transformation with a £2.5 billion investment aimed at creating a fully-electric, zero-emission system by 2030.
- The Bee Network: This integrated system is the first outside of London to bring together bus, tram, and train travel. By the end of 2026, the first train lines from Ashton-under-Lyne to Stalybridge and Manchester to Glossop/Hadfield will join the network, with new contactless ticketing and branded trains.
- Future Expansions: Early planning will also begin in 2026 for new Metrolink extensions to Salford Crescent, Salford Quays, Leigh, Wigan, and Bolton.
Manchester’s Five-Year Outlook
With regeneration projects like the £4 bn Victoria North masterplan and major cultural investments such as HOME Arches and Therme Manchester, the city is set to see exceptional growth as it embarks on this long-term transformation. Alongside this impressive list of regeneration schemes, strong yields across postcodes such as M14 (9.0%), M12 (7.3%) and M11 (7.2%) make Manchester one of the best places to invest in UK property in 2026.
Manchester’s property market has already seen values rise by 26% over the past 5 years, while rents have more than doubled this, increasing by 55.4% over the same timespan according to JLL. From May 2024 to 2025, the average property price rose from £248,644 to £256,644: if that were to continue, this would provide ample returns for investors. If you were to purchase a property in Manchester at the current average of £276,650, in 5 years the property would be worth approximately £353,248, which makes for a potential capital gain of £76,598.
Looking ahead, Manchester property values are forecast to rise by 4.5–7% between May 2025 and May 2026, which will be followed by 4–6% the following year. The growth is projected to be 4–5.5% in 2027–28, 3.5–5% in 2028–29, and 3–4.5% by 2029–30, cementing its position as one of the most compelling places to invest in the UK for 2026.
Is Manchester the Best Place to Invest in the UK in 2026?
What is being built in Manchester in 2026?
Manchester is the site of several major regeneration and development projects.
A Northern Redevelopment: A £4bn Victoria North Masterplan looks to deliver 15,000 new homes throughout north Manchester.
East Village: Located behind Piccadilly train station, this site has the potential to deliver 1,400 new homes, 12,000 sqm of workspace, and 6,500 sqm of retail, leisure, and event space. A significant portion of the area (40%) will be dedicated to green public space.
A City at the Cultural Forefront: With projects like HOME arches, there will be over 5,000 hours of free making space for local artists.
A new underground transport hub: A new underground system for trains and trams is being proposed for Manchester city centre, with the 10-year strategy “essential” for the city’s growth.
What are the best rental yields in Manchester in 2026?
While the average rental yield in Manchester is 5.61%, certain postcodes offer significantly higher returns. Based on current data, the areas with the best rental yields according to PropertyData, are:
M14 – 9.00%
M12 – 7.30%
M11 – 7.20%
M6 – 7.00%
M15 – 7.00%
Why is Manchester the best place to invest in the UK in 2026?
Manchester is a compelling investment location due to a strong combination of factors. The city has a proven history of robust property value growth, with prices increasing by 56.7% over the past decade, far outperforming the national average. Forecasts predict this growth will continue, with property values projected to rise by 4.5–7% between May 2025 and May 2026. This upward trend is supported by a large-scale regeneration agenda, a booming economy, and a rapidly growing population, which is expected to reach 630,000 by 2026, strengthening demand for rental properties.
The average property price in Manchester is £276,650, while the average monthly rent is £1,312, resulting in an average rental yield of 5.61%. This makes Manchester an attractive alternative to other major cities like London, where yields are typically lower. The city is also undergoing a £2.5 billion transport investment to create a fully-electric “Bee Network,” which will integrate bus, tram, train, and bike travel, further enhancing connectivity and making it an even more desirable place to live.
Invest in Birmingham in 2026 for Regeneration
Birmingham is fast becoming one of the UK’s leading buy-to-let hotspots, supported by large-scale regeneration projects that are reshaping the city.
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Digbeth: This former industrial hub is being transformed with plans for 6,000 new homes and 300,000 sqm of commercial space. The new BBC headquarters and Digbeth Loc Studios will create a thriving creative quarter, boosting both jobs and rental demand.
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Sports Quarter: Backed by £100 million of investment, East Birmingham will see a new 60,000-seat stadium, sporting facilities, and mixed-use developments. The project is set to create over 8,000 jobs annually and generate £370 million in economic growth.
Invest in Birmingham in 2026 for Transport
Major infrastructure improvements are also driving Birmingham’s growth:
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HS2 & Curzon Street: The new high-speed rail station will cut travel times to London to under 50 minutes and unlock a wider masterplan, including a University of Birmingham campus expansion and new residential developments.
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West Midlands Metro Expansion: A £1.3 billion investment will extend the metro to more than 80 tram stops and 20 interchanges, connecting Birmingham with Wolverhampton, Dudley, Solihull, the NEC, Birmingham Airport, and HS2.
Birmingham’s Five-Year Outlook
Birmingham property investment in 2026 is a highly attractive prospect, with average prices sitting at £234,328 and rental yields averaging between 5% and 6% in central postcodes like B1, B2 and B18.
Over the past 5 years, rent growth has dwarfed price growth, with rents increasing by 55.9% and prices by 18.8% according to the JLL Big Six Report. Looking ahead, Birmingham is forecast to see steady annual growth of 3-6% through to 2030, meaning a property bought for £234,328 in 2026 could rise to around £280,000 by 2031.
From May 2025 to May 2026, property prices in Birmingham are expected to rise by 5–7%, before moderating slightly to 4–6% between May 2026 and May 2027. Growth is then projected to average 4–5% from May 2027 to May 2028, easing to 3–5% between May 2028 and May 2029, and finally settling at a sustainable 3–4% between May 2029 and May 2030.
Is Birmingham the Best Place to Invest in the UK in 2026?
What are the best rental yields in Birmingham?
The top 5 postcodes in Birmingham for rental yields, as of 2026 and according to PropertyData, are:
B2 – 6.90%
B18 – 6.70%
B44 – 6.50%
B12 – 6.10%
B1 – 6.00%
Why is Birmingham the best place to invest in 2026?
If you’re looking for where to invest in the UK, here’s a breakdown of why you should be choosing Birmingham:
Birmingham property is affordable but rising in price: During the last decade, property values have climbed by 41.2% and yet Birmingham remains much more affordable than its peers. If forecasts are correct, investors could see their property increase in value by £46,000 over the next five years.
Birmingham is delivering above-average rental yields: High-performing postcodes across Birmingham are delivering up to 6% rental yields. When we consider the average property price in the city, this means investors stand to make exceptional returns on their investment.
It’s easy to get around the city: For 80% of tenants, transport links are the #1 priority. Fortunately, getting in and out of Birmingham is easy. Aside from New Street Station providing direct links to the UK’s top destinations, the city also has two other stations (Moor Street and Snow Hill) alongside its own Midlands Metro system, Birmingham International Airport and the upcoming HS2 project.
Birmingham is growing: Over the next two years, projections from the city council suggest there’ll be an extra 45,000 people living in Birmingham when compared to 2018. It’s important for investors to realise a large percentage of these new people will be looking for private renting, particularly in the city centre, if they’re looking to live and work in Birmingham.
Birmingham is attracting world-class employers: Speaking of working, Birmingham has a professional hub of 100,000 people and a talent pool that has attracted world-class names to open major offices in the city. During 2025, several multinational companies, including Expedia and Siemens, joined The Birmingham Project, which is pushing the professional sector even further, attracting more professionals with higher levels of disposable income, a perfect combination for investors.
What is being built in Birmingham in 2026?
Over the next year, the following projects are expected to continue construction as Birmingham’s skyline grows:
Digbeth Regeneration: 6,000 new homes, 300,000 sqm of commercial space, plus the BBC headquarters and Digbeth Loc Studios, are transforming the area into a cultural and economic hub to create one of the best places to buy property.
Sports Quarter Investment: A £100 million development in East Birmingham will deliver a 60,000-seat stadium, training facilities, and residential space, creating 8,400 jobs and boosting annual growth by £370 million.
Smithfield Transformation: The £1.9 billion Smithfield project will deliver 3,000 new homes, offices, retail, and leisure space, creating one of the UK’s most ambitious city centre redevelopments to make the area one of the best property investment areas in the UK.
Transport Expansion: £1.3 billion is being invested into the West Midlands Metro, with over 80 stops to strengthen connectivity and investment opportunities.
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Birmingham
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Invest in Bradford in 2026 for Regeneration
Bradford is undergoing a wave of regeneration that will transform its city centre and strengthen its property market.
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Bradford City Village: Delivering 1,000 new homes, three community parks, and new retail and hospitality spaces, this flagship project is redefining the heart of the city.
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Darley Street Market: A £23 million investment will create a modern retail hub, supported by wider public realm and highway upgrades that enhance the city’s appeal.
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Southern Gateway: This major regeneration scheme will unlock land for 5,000 new homes, create 23,000 jobs, and provide 440,000 sqm of office space, boosting both residential and commercial demand.
Invest in Bradford in 2026 for Transport
The West Yorkshire Combined Authority is prioritising Bradford’s transport links to better connect the city to the wider region. Improved connectivity will drive inward investment and support long-term housing demand. The city’s varied housing stock, from entry-level homes averaging £64,000 in B1 to higher-value properties around £270,000 in BD17, ensures opportunities for all investors.
With prices rising nearly 8% between 2024 and 2025 and further annual growth of around 7% forecast, Bradford is primed for strong returns. A property bought for £180,408 today could reach £253,050 within five years. This would represent a potential gain of over £72,000.
Bradford’s Five-Year Outlook
With regeneration projects revamping the city centre with new homes, green spaces, retail and office spaces, creating thousands of new jobs, along with the reasonable house prices throughout Bradford, we predict a continuation of growth and even a possible increase in the 8.19% growth from 2024-2025 from £166,757 to £180,408.
This, combined with Bradford’s new status as City of Culture 2025, as well as its affordability compared to other major UK cities, is set to attract both tenants and investors to this flourishing northern city. Similarly, strong rental demand and high yields driven by a young population and student base, and an array of ambitious regeneration projects aimed at transforming the city centre and creating new homes and jobs, make Bradford a clear contender when considering where to invest in the UK in 2026.
From May 2025 to May 2026, prices are expected to rise by 7–9%, before dipping slightly to 6–8% in the following year. Growth is then projected to average 5–7% between May 2027 and May 2028, easing to 4–6% from May 2028 to May 2029, and finally 3–5% between May 2029 and May 2030.
Is Bradford the Best Place to Invest in the UK in 2026?
What are the best rental yields in Bradford?
Bradford offers strong rental yields, with some postcode areas performing particularly well. Based on research, the top-performing postcodes for rental yield in Bradford are:
BD1 – 12.00%
BD5 – 6.90%
BD3 – 6.70%
BD4 – 6.70%
BD21 – 5.20%
What is being built in Bradford in 2026?
Darley Street Market development: This £23 million development will provide a modern, multi-floor market hall with food and non-food vendors, and a hot food court.
Bradford’s Southern Gateway: This is expected to unlock land for 5,000 new homes and create 23,000 jobs.
Bradford City Village: One of the main initiatives is the ‘Bradford City Village’ project, led by Bradford Council and ECF (English Cities Fund). This project aims to deliver up to 1,000 new homes, including affordable housing, three new community parks, and expanded retail and commercial spaces. The first phase of construction for the City Village is set to begin in 2026.
A Connected City: The city will be incorporated into West Yorkshire’s future mass transit tram system, with route options consulting in 2024–25 and construction planned from 2028, connecting to Leeds, Bradford, Southern Gateway and more.
Why is Bradford the best place to invest in the UK in 2026?
Bradford is gaining a strong reputation as one of the best places to invest due to a combination of factors:
Significant Regeneration: The city is undergoing major redevelopment projects like the Bradford City Village and the Southern Gateway, which are set to create new homes, jobs, and a revitalised city centre.
High Rental Yields and Affordability: With an average property value of just £215,995 and average rental yields of 5.06% (and up to 12% in some areas), the city offers a high return on investment. The varied housing market provides options for all budgets.
Strong Growth Potential: House prices saw a sharp increase of almost 8% between 2024 and 2025, and a price growth prediction of 7% per year. This, combined with the city’s status as UK City of Culture 2025, positions the property market for ongoing appreciation.
Growing Population and Demand: Bradford has a young and growing population, which drives strong rental demand. The creation of thousands of new jobs through regeneration projects will further increase the need for housing.
Invest in Leeds in 2026 for Regeneration
Leeds is entering its next major growth phase, with ambitious regeneration schemes set to reshape the city and strengthen its property market.
- Elland Road: A proposed redevelopment of 30 acres around the stadium could deliver up to 2,000 new homes, providing a major boost to housing supply and reinforcing Leeds’ growing economy.
- Innovation Arc: A £2 billion investment centred on the Leeds Innovation Village will create 4,000 jobs and generate £13 billion in economic growth. With a focus on health and life sciences, this project cements Leeds as a leading hub for high-growth industries.
- Citywide Growth: Alongside these flagship projects, new retail, residential, and office developments are transforming neighbourhoods across Leeds, enhancing both liveability and investor appeal.
Invest in Leeds in 2026 for Growth
With one of the UK’s strongest records of property price growth over the last decade, Leeds continues to offer long-term stability for investors. The city’s expanding jobs base, rising population, and large student community are expected to fuel sustained rental demand and support capital appreciation through 2030.
Leeds’ Five-Year Outlook
Investing in Leeds in 2026 offers a compelling opportunity for property investors as prices remain competitive compared to the UK average with an average of £241,163 compared to the UK average of £255,040. The average rental yield across the city sits at 5.41%, yet some postcodes achieve yields far in excess of this, climbing to as high as 8.8% in LS3 and LS4 – as such, thorough research is needed for investors to locate the very best neighbourhoods in Leeds to maximise ROI.
Price growth is also forecast at 6.81% annually between 2026 and 2031, which means that a property purchased for £283,500 in 2026 could be worth approximately £370,800 by 2031, delivering a potential profit of over £87,000.
From May 2025 to May 2026, prices in Leeds are expected to rise by 6–8%, before moderating slightly to 5–7% between May 2026 and May 2027. Growth is then projected to average 4–6% between May 2027 and May 2028, easing to 4–5% from May 2028 to May 2029, and finally settling at a steady 3–5% between May 2029 and May 2030.
Is Leeds the Best Place to Invest in the UK in 2026?
What are the best rental yields in Leeds in 2026?
The average rental yield in Leeds is 5.41%. However, some postcodes offer significantly higher returns. The best rental yields can be found in the following postcode areas, according to PropertyData,
LS2 – 8.80%
LS3 – 8.80%
LS4 – 8.80%
LS6 – 8.00%
LS9 – 7.30%
What is being built in Leeds in 2026?
A regeneration boom: From Elland Road’s 2,000-home redevelopment to the £2 billion Leeds Innovation Village, the city is undergoing some of the UK’s most ambitious regeneration projects, delivering new homes, jobs and commercial space on an unprecedented scale.
A thriving workforce: Leeds’ Innovation Arc is forecast to contribute £13 billion to the regional economy while creating 4,000 new jobs, strengthening its role as the UK’s third most attractive hub for healthtech firms and life sciences.
Residential and Commercial Space: New developments are creating over 3,000 new homes and a million square feet of new commercial space.
Why is Leeds the best place to invest in the UK in 2026?
Leeds is a compelling choice for property investment in 2026 due to several factors:
Strong Price Growth: Property values in Leeds have risen by 41% in the last 10 years. Price growth is predicted to accelerate, with a forecast of 21.85% between 2025 and 2028, or 6.81% per year. This means a property purchased for £283,500 in 2026 could be worth approximately £370,800 by 2031, a potential profit of over £87,000.
Competitive Property Prices: The average property price in Leeds is £241,163, which remains competitive compared to the UK average of £255,040.
Regeneration and Job Creation: The city is undergoing ambitious regeneration projects, such as the Elland Road redevelopment and the £2 billion Innovation Village. These projects are creating thousands of new homes and jobs, attracting a thriving workforce and growing population.
High Rental Demand: With its growing population and economic strength, demand for housing is set to intensify, making Leeds a strong market for rental property investment.
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The Halcyon
Yorkshire
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- Leeds property prices set to increase by 14.6% by 2028 (JLL)
- Leeds rental prices set to increase by 24% by 2028 (JLL)
- Just 24 minutes from Leeds and 18 minutes from Bradford
- Leeds properties achieving average yields of 5.96%
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- Estimated completion Q3 2025
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Invest in Leicester in 2026 for Regeneration and Transport
Leicester is undergoing a major transformation, with regeneration projects and transport improvements driving both economic growth and property demand.
- Leicester Market & Cank Street Link: This £7.5 million redevelopment of the historic market square will create new public spaces, retail units, and leisure areas, revitalising the city centre and boosting rental demand.
- Ashton Green & St George’s Quarter: Supported by upgraded road networks and 48 new electric buses funded through an £80 million transport improvement package, these emerging residential hubs will offer modern housing while improving connectivity across the city.
Invest in Leicester in 2026 for Growth
Leicester’s property market has been a strong performer, with values rising nearly 44% over the past decade. LE1 delivers rental yields of up to 7.2%, while areas like LE14 and LE17 are well-suited for long-term capital growth.
A property purchased today at the average price of £224,216 could be worth approximately £272,674 by 2030, representing a potential capital gain of over £48,000, before rental income is considered. With regeneration and transport projects driving both demand and accessibility, Leicester remains one of the UK’s most compelling property investment locations in 2026.
Leicester’s Five-Year Outlook
With a proven track record of outperforming the broader UK average, Leicester’s property values remain significantly below the national average, making it an accessible entry point for investors.
After a minimal market correction in 2024-2025, we anticipate a period of sustained growth, with momentum building over the next five years. Our forecast predicts a return to more significant appreciation, fueled by the city’s regeneration and economic growth. By 2030, we forecast Leicester’s market to grow by 18% cumulatively, cementing its place among the best places to invest in UK property in 2026 and beyond.
From May 2025 to May 2026, prices are expected to rise by 2–4%, before growing the following year to 3–5%. We then expect the growth to stay consistent at 3–5% between May 2027 and May 2028, steadying at 3–4% from May 2028 to May 2029, as well as from May 2029 and May 2030.
Is Leicester the Best Place to Invest in the UK in 2026?
What are the best rental yields in Leicester?
According to the information provided, Leicester offers a strong average rental yield of 3.83%, but certain postcodes offer much higher returns. The best rental yields in Leicester are:
LE1 – 7.20%
LE3 – 4.80%
LE4 – 4.50%
LE5 – 4.30%
LE11 – 4.20%
What is being built in Leicester in 2026?
In 2026, Leicester will be in the midst of several major regeneration projects:
Transforming the city centre: The £7.5 million regeneration of the historic marketplace in the heart of Leicester will create a more inclusive city centre space with community events and markets, expected to be completed by the end of 2026.
Leicester Market: A £7.5 million plan to transform the historic market to create an “open and heritage-focused public realm at the heart of the city”.
Transport Improvement package: The city is set to receive £80 million in funding to boost local transport infrastructure following the Chancellor’s 2025 Spending Review.
Why is Leicester the best place to invest in the UK in 2026?
Leicester stands out as a prime location for property investment in 2026 due to several key factors:
Proven Growth: The city has a strong track record of consistent property price growth, with values rising by nearly 44% over the past decade. A property bought for the current average of £224,216 could see its value grow to approximately £272,674 by 2030, representing a potential capital gain of over £48,000.
Regeneration and Economic Transformation: Leicester is undergoing a major five-year transformation, including a new £7.5 million regeneration of its historic market square. This broader strategy aims to create thousands of new jobs and boost the creative economy by 28%, which will attract more skilled professionals and increase demand for high-quality housing.
Growing Population: Leicester’s population is expected to reach 575,000 by 2026, driven by a growing student and professional population. This expanding demographic will continue to fuel the demand for both housing and rentals.
Transport Improvements: With £80 million in government funding, Leicester is investing in 48 new electric buses and improving road networks. This investment enhances accessibility and makes residential hubs like Ashton Green and the St George’s cultural quarter more attractive to tenants and buyers.
Affordability: The average property price of £327,152 in Leicester remains below the national average, making it a more accessible entry point for investors.
Invest in Liverpool in 2026 for Regeneration
- Liverpool Waters: A £5 billion scheme delivering thousands of new homes, office space, and leisure facilities, including landmark developments like the Lighthaus residential tower.
- Central Docks: Backed by £56 million in government funding, this project will create a modern waterfront community, driving demand for housing and rental properties.
- Knowledge Quarter: A major innovation hub focused on life sciences and technology, attracting high-skilled workers and strengthening Liverpool’s rental market.
Invest in Liverpool in 2026 for Growth
Liverpool’s economy is expanding with large-scale initiatives that will support long-term property demand.
- Liverpool City Region Freeport: Designed to attract global trade and private investment, creating thousands of jobs and boosting commercial opportunities.
- Anfield & Everton Stadium Regeneration: Major investment around Anfield and the new Everton FC stadium is revitalising neighbourhoods, improving amenities, and creating fresh demand for housing in nearby areas.
Liverpool’s Five-Year Outlook
Liverpool continues to stand out as one of the best places to invest in UK property in 2026: looking at the city’s historic growth alone is impressive, as average property prices reached £179,642 in May 2025, representing a growth of 49.02% over the last decade.
Rental yields across the city also remain strong, with postcodes such as L20 and L13 achieving yields exceeding 7%. With this history of predictable growth, we forecast that Liverpool property prices will rise by 6-8% in from 2025 to 2026, with sustainable growth of 4-6% annually to 2030.
From May 2025 to May 2026, property prices in Liverpool are expected to rise by 6–8%, before moderating slightly to 5–7% between May 2026 and May 2027. Growth is then projected to average 4–6% from May 2027 to May 2028, easing to 4–5% between May 2028 and May 2029, and finally settling at a sustainable 3–5% between May 2029 and May 2030.
Is Liverpool the Best Place to Invest in the UK in 2026?
What are the best rental yields in Liverpool in 2026?
The top 5 postcodes in Liverpool for rental yields, as of 2025 and according to PropertyData, are:
L20 – 8.70%
L13 – 7.70%
L5 – 7.40%
L4 – 7.20%
L3 – 6.60%
These yields, combined with the city’s predicted price growth and strong rental market, make Liverpool a compelling choice for property investors.
What is being built in Liverpool in 2026?
Liverpool is undergoing significant regeneration with several large-scale projects that are transforming the city and attracting investment. Key projects include:
Lighthaus Development: A 31-storey build-to-rent tower delivering 278 new homes at Princes Dock. Completed in January 2025, the scheme includes a gym, sky lounge, co-working space and concierge, strengthening Liverpool’s appeal for renters and investors alike.
Central Park at Liverpool Waters: A 2-hectare public park set to transform Central Docks from 2025 onwards, designed for events and biodiversity. This landmark green space is expected to enhance local desirability and long-term demand for property.
Knowledge Quarter: This area is being developed into a hub for life sciences and technology, drawing in a high-skilled workforce and boosting the rental market.
Liverpool City Region Freeport: A new initiative set to attract private investment and create new jobs.
Everton FC Stadium: Ongoing regeneration in the area surrounding the new stadium is revitalising communities.
Why is Liverpool the best place to invest in the UK in 2026?
Liverpool stands out as a top location for property investment in 2026 due to a combination of strong market growth, high rental yields, and extensive regeneration projects.
Rental Yields: The average rental yield for the city is 5.59%, significantly higher than the national average.
Property Price Projections: The population is projected to reach 935,000 by 2026, intensifying demand for both rental and owner-occupied homes. Price growth is forecast at 6-8% from 2025 to 2026, with continued growth of 4-6% annually until 2030.
Strong Regeneration Pipeline: Large-scale regeneration projects are transforming the city and driving tenant demand. Key schemes like the £5 billion Liverpool Waters project, including new developments like the Lighthaus residential tower, are adding thousands of new homes.
Historic Price Growth: In the last year, property values increased by 10.9%. Historical data shows an impressive 49.02% growth over the last decade.
Invest in Derby in 2026 for Regeneration and Transport
Derby is transforming into a leading investment location, with major regeneration projects and transport upgrades driving growth.
- Infinity Park Derby: Expansion of this advanced manufacturing and technology hub includes a new 264,222 sq ft warehouse and office facility, attracting skilled workers and creating strong housing demand.
- Cultural Heart of the City: The Cathedral Quarter is being revitalised with leisure, community, and commercial facilities, alongside the 3,500-capacity Vaillant Live arena, boosting visitor numbers and rental demand.
- Transport Improvements: A £2 billion investment in the Trent Arc corridor is enhancing rail, road, and bus links between Derby and Nottingham, while developments like Castleward Urban Village improve connections between the city centre and train stations, supporting residential growth.
Invest in Derby in 2026 for Education and Growth
Derby’s education sector is supporting long-term property demand. The new Cavendish Business School and University of Derby city centre campus, part of a £70 million investment, will serve over 6,000 students by 2030, increasing demand for student and professional housing.
These combined regeneration, transport, and education initiatives make Derby a compelling choice for property investors seeking strong rental returns and long-term capital growth in 2026.
Derby’s Five-Year Outlook
Average property values in Derby reached £210,531 in May 2025, marking a 40% rise over the past decade and a strong 6.7% increase in the past year alone. Rental performance is also appealing, with DE1 delivering yields of 6.1%, supported by steady demand across family homes and commuter properties. At today’s average price, a property in Derby could be worth around £269,200 by 2030, generating a potential gain of nearly £59,000.
From May 2025 to May 2026, prices are expected to rise by 5.5–7%, before moderating slightly to 4.5–6% in the following year. Growth is then projected to average 4–5.5% between May 2027 and May 2028, easing to 3.5–5% from May 2028 to May 2029, and finally settling at a sustainable 3–4.5% between May 2029 and May 2030.
Is Derby the Best Place to Invest in the UK in 2026?
What are the best rental yields in Derby?
While the average rental yield in Derby is 4.11% (based on an average monthly rent of £840 and an average property price of £288,413), certain postcode areas offer significantly higher yields for investors:
DE1 – 6.10%
DE21 – 5.00%
DE24 – 4.90%
DE3 – 4.40%
DE14 – 4.40%
What is being built in Derby in 2026?
Derby is undergoing a significant regeneration program in 2026, with major projects spanning industrial, cultural, and residential sectors. Key developments include:
Infinity Park Derby: A hub for advanced manufacturing and technology, with a new 264,222 sq ft warehouse and office facility attracting fresh investment and creating jobs.
Cultural Heart of the City scheme: This plan for the Cathedral Quarter includes new leisure, community, and commercial facilities. A central feature is the Vaillant Live arena, a 3,500-capacity venue for concerts and sports events.
University of Derby Business School: Part of a £70 million investment, this new school is set to open and cater to 6,000 students by 2030, increasing demand for student and professional housing.
Trent Arc corridor: A £2 billion investment is improving transport links between Derby and Nottingham, with new road, rail, and bus connections enhancing accessibility and unlocking further growth.
Castleward Urban Village: This project is creating hundreds of new homes and improving connections between the city centre and the train station.
Why is Derby the best place to invest in the UK in 2026?
Derby stands out as a top investment location due to a combination of factors:
Steady Property Value Growth: The city consistently delivers one of the most stable annual property value growth rates in the UK. The price growth prediction from 2025 to 2028 is 10.73%, or 3.46% per year.
Strong Economic and Cultural Regeneration: Significant investment in industrial and commercial sectors, as well as new cultural landmarks like the Vaillant Live arena, is enhancing the city’s appeal and creating long-term demand for housing.
Growing Skilled Workforce and Student Population: The expansion of Infinity Park and the new University of Derby Business School are bringing a skilled workforce and a large student population, which directly fuels the demand for rental properties.
Strategic Location and Improved Connectivity: Derby’s central UK location is being strengthened by new transport links to major cities like Nottingham, further enhancing its appeal as a residential and commercial hub.
Affordable Entry Point: With an average property price of £288,413, Derby remains a more affordable option compared to other major UK cities, offering a strong entry point for investors looking for high-growth potential.
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Invest in Bristol in 2026 for Regeneration and Transport
Bristol’s ongoing regeneration is creating a wealth of opportunities for property investors, with large-scale housing and infrastructure projects reshaping the city.
- Brabazon Development: This flagship project will deliver 6,500 new homes, including 2,000 student accommodations and 1,700 affordable units, supporting over 30,000 jobs and generating £5 billion in economic value.
- Temple Quarter: A major city-centre regeneration scheme around Temple Meads station, set to deliver up to 10,000 new homes, 22,000 jobs, and the University of Bristol Temple Quarter Enterprise Campus, boosting demand from students and professionals.
- Transport Improvements: The MetroWest programme is reopening old railway lines and adding new stations like Ashley Down, connecting suburban areas to the city centre and enhancing rental demand across Bristol.
Bristol’s Five-Year Outlook
Average property values in Bristol stood at £351,748 in May 2025, reflecting a 33.8% rise over the past decade and steady growth despite recent cooling. The city’s fundamentals remain strong, supported by consistent yields such as BS2 at 6.1%, BS34 at 6.9%, and BS1 at 5.5%, making it attractive for investors seeking both stability and income.
While demand has slowed compared to more affordable northern cities, Bristol’s excellent amenities and ongoing regeneration continue to underpin its long-term appeal. At today’s average price, a property in Bristol could be worth around £420,000 by 2030, delivering significant capital growth. What’s more, average property prices have increased by 14.4% over the past 5 years, while rents have more than doubled this pace, increasing by 34%.
From May 2025 to May 2026, property prices in Bristol are expected to rise by 3–5%, before strengthening slightly to 4–6% between May 2026 and May 2027. Growth is then projected to average 4–5% in the following year, easing to 3–5% between May 2028 and May 2029, and finally settling at a sustainable 3–4% from May 2029 to May 2030.
Is Bristol the Best Place to Invest in the UK in 2026?
What are the Best rental yields in Bristol?
While the average rental yield in Bristol is approximately 4.66%, some postcodes offer significantly higher returns for buy-to-let investors. Based on our research, the areas with the best rental yields are:
BS34 – 6.90%
BS2 – 6.10%
BS11 – 5.80%
BS13 – 5.80%
BS16 – 5.60%
What is being built in Bristol in 2026?
Brabazon Development: A £4 billion investment by Malaysian firm YTL is creating a new town in Bristol, featuring 6,500 homes, schools, hotels, an entertainment arena, and a new railway station, transforming the area into a major residential and commercial hub.
Kingsley Hall Renovation: The 319-year-old Kingsley Hall has been awarded £4.7 million from the National Lottery Heritage Fund for renovation, aiming to create a community hub for disadvantaged young people and support local engagement.
Temple Quarter Regeneration: A 25-year plan is turning 135 hectares of brownfield land into new communities, delivering 10,000 new homes, thousands of new jobs, and an estimated £1.6 billion annual boost to Bristol’s economy.
Why is Bristol the best place to invest in the UK in 2026?
Bristol is considered a top location for property investment due to its consistent performance and strong market fundamentals. Here’s why it’s a compelling choice for 2026:
Strong Property Growth: Bristol has a proven track record of property value appreciation, with prices rising by 20.3% in the past five years. Forecasts predict continued growth, with an average of 2.61% per year from 2025 to 2028.
High Demand: The city’s population is expected to reach 720,000 residents by 2026, creating a high and sustained demand for both residential and rental properties.
Significant Regeneration: The ongoing regeneration schemes, particularly the Brabazon Development and Temple Quarter, are creating new homes, jobs, and improving infrastructure. This holistic approach to development makes the city an attractive and secure investment choice.
Robust Economy: Bristol boasts a strong economy driven by sectors like technology, aerospace, and creative industries, which attracts a skilled workforce and students who contribute to the robust rental market.
Improved Transportation: Investments in the transport network, such as the MetroWest programme, are enhancing connectivity and making more areas of the city accessible and desirable for tenants.
Invest in Hull in 2026 for Regeneration and Transport
Hull is transforming into a prime location for property investment, with large-scale housing and infrastructure projects driving growth.
- East Bank Urban Village: This £10 million Levelling Up funded scheme will deliver up to 850 new homes, commercial spaces, green areas, and improved infrastructure on the east side of the River Hull.
- Albion Square: A £96 million city-centre redevelopment turning a derelict site into mixed-use space with homes, offices, retail, and a public urban park. An additional £17 million investment ensures the project’s success, enhancing Hull’s appeal to residents and investors.
- Transport and Connectivity: Improved links across the city, including better road and bus networks, complement the regeneration projects, making Hull more accessible and attractive to tenants and buyers.
Invest in Hull in 2026 for Growth
Hull’s property market has seen values rise over 34% in the past decade, with an expected annual growth rate of 4.5%. A property bought for £131,232 in 2025 could be worth around £163,398 by 2030, representing a potential gain of £32,166.
High-yield postcodes such as HU1 (7.9%) and HU6 (6.5%) make Hull an attractive choice for rental investors. Combined with major regeneration projects, the city offers a mix of growth and income potential that positions it as one of the best places to invest in UK property in 2026.
Hull’s Five-Year Outlook
Hull is poised for explosive growth. With city-centre yields in the HU1 postcode reaching up to 7.9% and enviably low property prices, this is a city on the rise. A massive £96 million regeneration project is transforming the city core, setting the stage for significant capital appreciation. We predict a cumulative price growth of up to 27% from 2025-2030, with the biggest gains expected as the decade closes and these ambitious regeneration plans come to fruition.
With such ambitious plans for the city’s development, we predict steady growth across the next five years. Which means, when considering the best property investment areas in the UK, Hull offers one of the best opportunities for sustained growth.
From May 2025 to May 2026, prices are expected to rise by 3.5–4.5%, before following a similar projection for the following year of 3.5–5%. We then project a jump to 4.5–5% between May 2027 and May 2028, surging further to 4–6% from May 2028 to May 2029, and staying steady at 4–6% from May 2029 and May 2030.
Is Hull the Best Place to Invest in the UK in 2026?
What are the best rental yields in Hull?
Hull’s affordable property prices and high rental demand contribute to some of the most competitive rental yields in the UK. The average rental yield in the city is 5.17%, but specific postcodes offer significantly higher returns. Based on current data, the best rental yields in Hull are found in the following postcodes:
HU1 – 7.90%
HU2 – 7.20%
HU6 – 6.50%
HU9 – 6.20%
HU3 – 5.80%
What is being built in Hull in 2026?
Hull is undergoing a significant transformation with several major construction and regeneration projects underway…
Massive growth in housing: Hull has an ambitious strategy, aiming to deliver 6000 new homes between 2025 and 2031, which includes over 1,400 affordable houses, fuelling a strong demand and supporting local development plans.
East Bank Urban Village: Creating a mixed-use neighbourhood, this project aims to provide up to 850 new homes backed by £9.875, of levelling up partnership funding.
A new look for the city centre: Launched in 2022, the Albion Square regeneration aims to convert a derelict site in Hull’s city centre into homes, shops, offices and an urban park.
Why is Hull the best place to invest in the UK in 2026?
Hull is rapidly emerging as a top investment location due to a combination of affordability, strong regeneration efforts, and a positive outlook for price growth. Here’s a breakdown:
Affordability: With an average property price of £194,530, Hull is less than half the national average. This low barrier to entry allows investors to acquire properties in desirable postcodes like HU1 and HU9 for under £130,000.
Regeneration and Investment: Following its status as the UK City of Culture, Hull has attracted over £3 billion in investment, with another £1 billion in commercial and infrastructure projects planned. These efforts are transforming the city, attracting a growing population of young professionals and students. Key projects include the £96 million Albion Square and the East Bank Urban Village, which will introduce new homes, retail spaces, and green areas.
Strong Price Growth Potential: The city’s property values are projected to see a five-year growth of 18.8% by 2026, which is higher than the UK average of 13.1%. A five-year outlook predicts a cumulative price growth of up to 27% from 2025-2030.
Invest in Glasgow in 2026 for Regeneration
Glasgow’s ongoing regeneration makes it a prime location for property investment, creating new housing and revitalising key areas.
- Clyde Gateway: A major mixed-use development delivering residential, commercial, and industrial spaces, strengthening the local economy and expanding property opportunities.
- Collegelands Park: Over 1,400 new student and residential properties will ease housing shortages and support strong rental growth.
- Shawlands Arcade: Redevelopment of 16,700 sq ft of commercial space into 330 apartments with retail and leisure facilities is enhancing the area’s appeal.
- City-Wide Development: Projects like the Sighthill redevelopment are revitalising communities, improving connectivity, and sustaining demand across the city.
Glasgow’s combination of large-scale regeneration and strong rental market fundamentals makes it a compelling prospect for UK property investors in 2026.
Glasgow’s Five-Year Outlook
From 2025 onwards, we expect Glasgow to experience growth above the UK’s average of 3%-4.5%, supported by rising demand for both residential and commercial investment property for sale in Glasgow. Our forecast predicts values could rise by 6-8% between 2025 and 2026, before stabilising at 4-6% annually through to 2030 as regeneration projects complete and rental demand remains high.
From May 2025 to May 2026, property prices in Glasgow are forecast to rise by 6–8%, followed by a more moderate 5–7% increase between May 2026 and May 2027. Growth is then projected to average 4–6% in the following year, before easing slightly to 4–5% between May 2028 and May 2029, and settling at a steady 3–5% from May 2029 to May 2030.
By 2030, we anticipate cumulative growth of around 20–22% across the city, led by regeneration areas including Shawlands, Clyde Gateway, and the city centre. Together, these projects are cementing the city as one of the strongest investment property markets in the UK.
Is Glasgow the Best Place to Invest in the UK in 2026?
What are the best rental yields in Glasgow?
Based on recent research, several postcode areas in Glasgow offer particularly strong rental yields, making them attractive for buy-to-let investors. These areas include:
G67 – 9.30%
G1 – 8.70%
G2 – 8.60%
G52 – 8.50%
G40 – 8.40%
What is being built in Glasgow in 2026?
Clyde Gateway Innovation: £500 million regeneration across 100 hectares, delivering homes, hotels, business spaces, and green infrastructure along the River Clyde, creating major property investment opportunities in Glasgow.
Collegelands Park: £95 million mixed-use development in Calton, with 1,289 student accommodations, 147 apartments, a new park, and an arts centre, easing housing shortages and driving demand for investment property in Glasgow.
The 2026 Commonwealth Games: In preparation for the Games, significant investment will be made in the city’s sporting infrastructure, including a new athletics track at Scotstoun Stadium and other venue upgrades.
Shawlands Arcade redevelopment: This project will transform a large commercial space into 330 new apartments, along with new retail and leisure facilities.
Why is Glasgow a good place to invest in the UK in 2026?
Glasgow is considered one of the best places for property investment in the UK due to a combination of strong market fundamentals and ongoing regeneration.
Robust Property Price Growth: Glasgow’s property values have risen by over 50% in the last 10 years and continue to show strong growth. From May 2025 to May 2026, property prices are forecast to rise by 6–8%, significantly above the UK average.
High Rental Demand: The city is a hub for both residential and commercial investment, with a growing population. New developments and regeneration projects are creating a strong demand for rental properties.
High Rental Yields: Glasgow offers some of the best rental yields in the UK. The average rental yield in the city is 6.46%, with some postcode areas offering yields as high as 9.30%.
Affordability: With an average property price of £202,582, Glasgow remains a more affordable market compared to many other major UK cities, making it an attractive entry point for investors.
Invest in Nottingham in 2026 for Regeneration
Nottingham offers strong property investment opportunities, driven by ongoing regeneration projects that are reshaping the city.
- Island Quarter & Queens Road: Brownfield sites are being redeveloped into up to 200 new homes, including high-quality apartments with public and retail spaces.
- Broadmarsh Transformation: The addition of green spaces and mixed-use developments is creating vibrant community and commercial hubs, strengthening long-term appeal.
- H20 Urban: A vacant warehouse opposite the new HMRC building will be converted into 95 apartments, meeting the needs of a growing workforce and boosting central housing supply.
Invest in Nottingham in 2026 for Education
Nottingham’s thriving student population of over 75,000 across the University of Nottingham and Nottingham Trent University sustains strong rental demand, making student accommodation a consistent investment opportunity.
Invest in Nottingham in 2026 for Growth
City centre postcodes like NG1 and NG7 offer average yields of 7.85%, with house prices predicted to grow 4.46% annually. A property bought for £271,000 in 2025 could reach approximately £337,070 by 2030, delivering a potential gain of £66,070.
Large-scale projects such as Broadmarsh Green, creating over 1,000 homes, 2,000 jobs, and 10,000 sqm of commercial space, will further drive demand from tenants and investors alike, cementing Nottingham as a top location for UK property investment in 2026.
Nottingham’s Five-Year Outlook
With the regeneration projects, diverse price points, and demand in the city, we predict continued property price growth in Nottingham. While the double-digit increases of recent years may be moderate, the underlying market fundamentals suggest a sustained upward trajectory. Why? Even before the significant growth period of 2020 to 2022, when it saw a 21.26% rise, from £143,377 to £173,861, there had been consistent increases in property values.
If this growth were to continue with a similar consistency, then we predict steady growth across the next five years. So, for investors asking where to invest in the UK in 2026, Nottingham offers one of the clearest cases for sustained growth.
From May 2025 to May 2026, prices are expected to rise by 4–6%, before moderating slightly to 4–5.5% in the following year. Growth is then projected to average 3.5–5% between May 2027 and May 2028, easing to 3–4.5% from May 2028 to May 2029, and finally settling at a sustainable 3–4% between May 2029 and May 2030.
Is Nottingham the Best Place to Invest in the UK in 2026?
What are the best rental yields in Nottingham?
Nottingham offers strong rental yields, especially in postcodes with high demand from students and professionals. Based on recent research, the best yields in Nottingham are:
NG7 – 7.90%
NG1 – 7.80%
NG6 – 5.80%
NG20 – 5.40%
NG5 – 5.20%
What is being built in Nottingham in 2026?
Several large-scale regeneration projects are set to continue and progress in Nottingham in 2026, including:
Major regeneration driving demand: Projects like The Island Quarter and Queens Road aim to create over 700 new homes from 2025, a projection backed by a £9 million government grant.
Heritage meets housing: The H2O Urban warehouse conversion will transform a listed building into a hub of growth, with 95 apartments and fantastic retail and public spaces.
Broadmarsh transformation: Over 1,000 new homes, 2,000 jobs, 20,000 sqm of office, commercial and leisure space, new additions include Broadmarsh car park and bus station, central library, Nottingham College City Hub and the Nottingham Castle Visitor Experience.
A hub of further education: The University of Nottingham has launched plans to become a leader in education, innovation and research, keeping it popular among student renters.
Why is Nottingham the best place to invest in the UK in 2026?
Nottingham is a prime location for property investment in 2026 due to a combination of factors, including steady property price growth, high rental demand, and significant regeneration projects.
Affordable Property Prices: With an average property price of £271,594, it offers a more affordable entry point for investors compared to the UK average.
Strong Rental Demand: The city’s thriving education sector, with over 76,000 students at the University of Nottingham and Nottingham Trent University, creates a consistent and strong demand for rental properties.
Regeneration Plans: The city is also undergoing a period of major regeneration, with projects like the Island Quarter and Broadmarsh transforming key areas and creating thousands of new homes, jobs, and commercial spaces. This urban renewal is not only attracting a rising population, but also strengthening the city’s long-term appeal for residents and investors alike.
Promising Price Predictions: With a predicted annual price growth of 4.46% between 2025 and 2028, a property purchased for £271,000 could be worth approximately £337,070 in five years, offering a potential profit of £66,070.
Invest in Newcastle in 2026 for Regeneration
Newcastle offers compelling property investment opportunities, driven by major regeneration projects across the city.
- Forth Yards: This £121.8 million redevelopment will deliver 1,100 homes at Quayside West, with a further 2,500 homes across the wider estate, meeting strong demand for housing.
- Grainger Market: An £8.2 million Levelling Up Fund project will restore the historic market, create new retail and leisure spaces, and attract residents and visitors to the city centre.
Invest in Newcastle in 2026 for Transport
Newcastle’s transport infrastructure is improving to support growth and connectivity. Upgrades to local and regional networks are enhancing access to key business districts, residential hubs, and leisure destinations across the city.
Northern Powerhouse Rail will provide upgrades to rail infrastructure, integrating with HS2 and the TransPennine Route Upgrade, will reduce journey times to Leeds, Manchester, and other northern cities, improving connectivity for both residents and businesses and boosting Newcastle’s investment potential.
Newcastle’s Five-Year Outlook
Average property values in Newcastle reached £205,197 in May 2025, marking an impressive 36% rise over the past decade. Looking ahead, prices are forecast to continue on this trajectory of growth, with Joseph Mews predicting 6–8% property price growth between 2025 and 2026, before easing to 4–6% annually through 2030. This represents cumulative growth of around 20% between 2025 and 2030. If you purchased a Newcastle property at today’s average price, by 2030 it could be worth approximately £246,236, representing growth of £41,039 over five years.
As property values increase, so do rental values – and Newcastle’s rental yields remain highly attractive, with NE1 delivering 9.0% and areas like NE6 and NE8 exceeding 8%. Combined with regeneration-led growth, these fundamentals cement Newcastle’s position as one of the most compelling property investment opportunities in the UK for 2026.
From May 2025 to May 2026, property prices in Newcastle are expected to rise by 6–8%, before moderating slightly to 5–7% between May 2026 and May 2027. Growth is then projected to average 4–6% from May 2027 to May 2028, easing to 4–5% between May 2028 and May 2029, and finally settling at a sustainable 3–5% between May 2029 and May 2030.
Is Newcastle the Best Place to Invest in the UK in 2026?
What are the best rental yields in Newcastle in 2026?
Based on our research, several postcodes in Newcastle offer particularly strong rental yields, far exceeding the national average. The top-performing postcodes for rental yields are:
NE1 – 9.00%
NE8 – 8.90%
NE6 – 8.50%
NE4 – 8.20%
NE10 – 7.40%
What is being built in Newcastle in 2026?
Forth Yards Regeneration: From 2025, Newcastle’s last major brownfield site will deliver new homes, offices, and R&D space, creating fresh property investment opportunities.
Employment and Education: The Leonardo R&D hub at Newcastle Helix is expanding, bringing 200+ high-tech jobs and strengthening rental demand.
Transport Infrastructure: The city’s transport infrastructure is also being enhanced with the Northern Powerhouse Rail (NPR) project, which will improve connectivity and reduce travel times to other major northern cities.
Grainger Market: Grainger Market is set for an £8.2 million transformation to restore its heritage and attract more visitors.
Why is Newcastle a good place to invest in the UK in 2026?
Newcastle presents a strong case as one of the best locations for property investment in 2026 due to a combination of factors:
Strong Property Price Growth: Property values in Newcastle have consistently grown, rising by over 36% in the last decade. A strong price growth prediction of 13.86% from 2025-2028 (4.42% per year) makes it an attractive market for capital appreciation.
High Rental Yields: The city offers highly attractive rental yields, with central postcodes like NE1 and NE8 delivering yields close to 9%. This is significantly higher than the typical UK average of 4% to 5%.
Regeneration and Development: Major regeneration projects like Forth Yards and the Grainger Market transformation are expected to drive demand for both residential and commercial properties.
Economic and Population Growth: Improved transport links from the Northern Powerhouse Rail will boost economic activity. The population is also forecast to reach 834,000 by 2026, increasing demand for housing.
Invest in Sunderland in 2026 for Regeneration and Transport
Sunderland offers strong property investment opportunities, supported by major redevelopment and transport projects.
- Riverside Quarter: An £80 million regeneration is creating 1,000 new homes, 1 million sq ft of employment space, and new community infrastructure.
- British Esports Arena: A 15,000 sq ft venue near the Stadium of Light will host events and provide retail and hospitality spaces, boosting local demand.
- Pedestrian & Cycle Crossing: A £31 million bridge over the River Wear will link neighbourhoods, civic centres, and green spaces, improving accessibility and increasing the appeal of nearby residential and commercial properties.
Invest in Sunderland in 2026 for Education
Sunderland’s Skills and Inclusion Programme, delivered by the University of Sunderland, provides funded training to upskill local organisations and employees, strengthening the workforce and supporting long-term demand for housing.
Sunderland’s Five-Year Outlook
Just a small glance at Sunderland’s property market reveals just why it has earned its spot on our Best Places to Invest list – the average property in this Northern city is approximately half the price of the UK national average, and the past 12 months alone have seen 9.2% property price growth, outpacing giants such as Manchester, Birmingham and Bradford.
The pace of Sunderland’s property growth is especially impressive over the past few years, following a slower trajectory from 2016 to 2020 – but now, the city’s growth is in full swing, hence our ambitious projections for the next 5 years.
From May 2025 to May 2026, prices are forecast to rise by 6–8%, before easing slightly to 5–7% the following year. Growth is then expected to remain steady at 4–6% between May 2027 and May 2028, before moderating further to 4–5% from May 2028 to May 2029. From May 2029 to May 2030, we anticipate growth stabilising at around 3–5%, reflecting a more mature stage of the market cycle.
Is Sunderland the Best Place to Invest in the UK in 2026?
What are the best rental yields in Sunderland?
While the average rental yield in Sunderland is 5.31%, some postcodes offer significantly higher returns. Based on our research, the best rental yields can be found in the following areas:
SR1 – 10.61%
SR4 – 5.98%
SR5 – 5.90%
SR8 – 5.71%
SR2 – 4.33%
What is being built in Sunderland in 2026?
Sunderland is in the midst of a large-scale regeneration, with several key projects set to progress or be completed in 2026:
A transformation on the riverside: With a total infrastructure investment of almost £80 million, there are numerous plans across the former industrial heartland to create an urban quarter providing 1,000 new homes and 1 million sqft of employment space.
E-sports innovations: British Esports will open its flagship gaming and esports arena in Sunderland next year, positioning the city as a leader in one of the fastest-growing industries in the world.
New Pedestrian and Cycle Crossing: A £31 million bridge across the River Wear is being built to connect different parts of the city, improving transport links and access to green spaces.
Skills and Inclusion Programme: The University of Sunderland, funded by the Shared Prosperity Fund, will deliver over £1 million in funded training to upskill the local workforce, making the city more attractive to businesses and talent.
Why is Sunderland the best place to invest in the UK in 2026?
Sunderland is an attractive investment location due to a combination of factors:
Affordable Entry Prices: The average property price in Sunderland is £216,422, which is significantly lower than the UK national average, making it an accessible market for investors.
Strong Property Price Growth: The city has seen impressive growth, with a 9.2% increase in property values over the past year and nearly 25% growth in the last five years. Our research projects a further price growth of 11.36% between 2025 and 2028.
High Rental Yields: With an average rental yield of 5.31%, Sunderland offers strong returns. Certain postcodes, such as SR1, provide exceptional yields of up to 10.61%.
Major Regeneration Projects: Sunderland is undergoing a massive transformation with significant investment, particularly in the Riverside Sunderland masterplan. This includes an almost £80 million investment to create a new urban quarter with 1,000 new homes and 1 million square feet of employment space.
Improved Infrastructure: Upgrades like the new £31 million pedestrian and cycle bridge will improve connectivity, making the city more attractive to residents and boosting property values.
What About London Property Investment?
While our primary focus has been on the high-yield cities of the North and Midlands, we want to be clear that this doesn’t mean London is off the table. London’s property market is in a league of its own. It’s often misunderstood as a “poor investment” due to its lower average rental yields compared to the rest of the country.
However, London’s investment appeal lies not in high yield, but in its unparalleled capital appreciation and consistent, robust demand. The city’s status as a global financial, cultural, and educational hub ensures a constant influx of tenants—from international students and young professionals to high-net-worth individuals. This fundamental demand provides a level of market stability and long-term security that few other locations can match. While the entry price is higher, London properties tend to hold their value and see significant capital growth over time, making them a cornerstone of many high-value portfolios.
Furthermore, while this guide highlights major cities, we want to emphasise that outstanding investment opportunities exist across the entire UK. From bustling coastal towns in Southern England to regenerated market towns in Wales and Scotland, the key is to look for the same underlying metrics: strong local economies, population growth, and clear tenant demand. A successful investment is ultimately about finding the right property in the right micro-location, not just in a list of a dozen cities.
Where are the Best Places in the UK for Rental Yields?
Looking to invest in the UK? If you’re deciding where to invest based on rental growth, these are the best places to invest in the UK:
| City | Property Price | Current Yield | Est. Rental Growth 2025-30 | |
| Glasgow | £202,000 | 6.4% | 31% | |
| Manchester | £276,000 | 5.6% | 28% | |
| Liverpool | £220,000 | 5.5% | 31% | |
| Newcastle | £220,000 | 5.5% | 31% | |
| Leeds | £283,000 | 5.4% | 31% |
Source: Joseph Mews, ONS
Our data suggests that northern English and Scottish cities are currently the most attractive for property investors seeking high rental returns.
Glasgow leads the way with the highest current rental yield at 6.4%, making it the top performer in the table. While its average property price is a reasonable , its strong yield indicates a healthy rental market. Following Glasgow, the English cities of Manchester, Liverpool, Newcastle, and Leeds also show strong yields, ranging from 5.4% to 5.6%.
A significant factor for long-term investors is the impressive estimated rental growth projected for these cities. Most are forecasted to experience a remarkable 31% increase in rent between 2025 and 2030, with Manchester also showing a robust 28% growth. This suggests that these locations not only offer good immediate returns but also strong potential for future capital appreciation and increased rental income.
Where are the Best Places in the UK for Capital Appreciation?
If you’re looking to build capital appreciation, these are the best places to invest in the UK for capital growth:
| City | Property Prices (ONS) | Growth Over Last 10 Years | Predicted Cumulative Growth 2025-30 |
| Manchester | £276,000 | 56% | 28% |
| Glasgow | £202,000 | 51% | 31% |
| Liverpool | £220,000 | 49% | 31% |
| Nottingham | £271,000 | 47% | 25% |
| Leicester | £327,000 | 43% | 30% |
Source: Joseph Mews
Looking at the growth for these specific cities, we can truly see the effect that the ‘London Exodus’ has had on regional locations, establishing them as the best places to invest in UK property in 2026 and some of the best buy-to-let areas across the nation.
Both Manchester and Glasgow have seen an over 50% increase to their average property values over the past decade, with this trajectory set to continue until 2030 as we predict cumulative value growth of 28% and 31% respectively. Similarly, English cities Liverpool, Nottingham and Leicester – all of which have seen over 40% proce growth over the same decade timespan – are anticipated to continue on their path to growth, with each city set to see between 25% and 31% growth until 2030.
Where are the Worst Places in the UK for Buy-To-Let?
We’ve unveiled the best places to invest in UK property 2026, but while some locations are succeeding, others are failing. It is vital that you are aware of these locations that are achieving minimal growth when investing in UK property in order to make the most measured investment decision. These are the current worst places to invest in the buy-to-let, according to the latest data from the ONS:
| City | Property Prices | Current Yield |
| South Hams | £373,000 | 3.16% |
| Kensington & Chelsea | £1,362,000 | 3.18% |
| North Norfolk | £306,000 | 3.25% |
| Herefordshire | £291,000 | 3.29% |
| Uttlesford | £455,000 | 3.38% |
Source: ONS
The data above highlights that despite high property values in some areas, the annual rental income is a very small percentage of the overall price. For instance, Kensington & Chelsea has an extremely high average property price of over million, but its rental yield is just . This signifies that the rent generated does not provide a strong return relative to the capital invested. Similarly, South Hams shows the lowest yield at , indicating a poor return on investment from rental income alone.
For a buy-to-let investor, these low yields mean that it would take a significant amount of time to recoup the initial investment through rent. While these areas might offer potential for capital appreciation, they are not ideal for investors seeking a strong, consistent cash flow from their rental properties. Making a measured investment decision involves considering not just the potential for property price growth but also the immediate and ongoing profitability represented by the rental yield.
