Positive Property Forecasts
Following the volatility of the post-pandemic, high-inflation period (2022–2024), the UK property market is anticipated to settle into a pattern of sustained house price appreciation from 2026 onwards.
However, certain parts of the UK are set to see better growth than others. Our latest predictions, based on historic activity, demand and regeneration, have pinpointed six key regions for growth, as outlined below:
| Region | 2026 | 2027 | 2028 | 2029 | Overall (Top Estimate) | |
| Birmingham | 4-6% | 4-5% | 3-5% | 3-4% | 20% | |
| Manchester | 4-6% | 4-5.5% | 3.5%-5 | 3-4.5% | 21% | |
| Glasgow | 5-7% | 4-6% | 4-5% | 3-5% | 23% | |
| Leeds | 5-7% | 4-6% | 4-5% | 3-5% | 23% | |
| Bradford | 6-8% | 5-7% | 4-6% | 3-5% | 26% | |
This data alone is a clear indication of why buyers are looking to invest in the UK property market – regional cores are seeing high levels of growth, led by the Midlands and the North. The Midlands is specifically attractive to investors as it is a more affordable region, thereby highlighting the potential of the location as an entry point for property investment.
While the South continues to be one of the most expensive regions in the country, it’s expected that London and the South East will rebound over the next four years after a challenging performance since 2016.
Long-Term Rental Growth
The most crucial factor for buy-to-let investors is the imbalance between supply and demand in the Private Rented Sector (PRS), which continues to generate sustained rental inflation.
Rental growth is expected to remain robust, ensuring better immediate cash flow for landlords.
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Regional Rental Resilience: Key cities like Manchester, Birmingham, and Bristol continue to outperform the national average significantly. Cumulative rental growth in these leading regional cores until 2029 is anticipated to extend beyond 18% according to the JLL Big Six Residential report.
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The Regulatory Impact: Legislation like the Renters’ Rights Act (expected to be fully implemented by 2026/2027) is prompting some smaller, traditional landlords to exit the market. This reduction in available rental stock further exacerbates the supply squeeze, which in turn maintains upward pressure on rents.
By investing in new-build, high-specification units in major urban centres, investors can capitalise on this fundamental supply deficit.
Want to know more about the UK property market for 2026? Still wondering ‘is uk property a good investment’? Download the UK Investment Guide today and discover everything you need to know about UK property investment in the new year. In this guide you’ll find:
- Current market performance
- Forecasts for the UK property market in 2026
- Key trends impacting the market
- Best places to invest in 2026
A Growing Population
The UK property market is underpinned by two deep-seated demographic realities: a large, growing population and a severe housing shortage.
Population Boom: The UK population is projected to reach 70 million by 2026 and grow to 72.5 million by 2032. This growth is primarily driven by net international migration, which feeds directly into the rental market, especially in major cities like London, Birmingham, and Manchester.
Housing Undersupply: The government consistently fails to meet its housebuilding targets. This systemic undersupply ensures that the growth in new households outpaces the growth in new homes, meaning competition for rental properties will remain fierce.
The Rise of Older Renters: While young professionals (“Generation Rent”) are the core market, the fastest-growing demographic of tenants is the over-50s. This segment often requires higher-quality, long-term rental accommodation due to downsizing or a lack of savings for homeownership, diversifying the tenancy base and adding resilience to the PRS.
The continuous influx of people and the lack of new housing guarantees sustained, high tenant demand well into the next decade.
Increasing Inward Investment
The confidence of global corporations and foreign investors acts as a powerful barometer for the UK’s economic health and future property market performance.
Global Confidence: Despite short-term fluctuations, the UK remains the second most attractive destination in Europe for Foreign Direct Investment (FDI). This inward investment typically flows into high-value sectors like financial services, digital, and technology.
The Regional Shift: This FDI is increasingly targeting key regional cities. For example, the presence of global firms like PwC, HSBC, and Goldman Sachs in Birmingham demonstrates a permanent shift in economic gravity away from London. These relocations create thousands of high-earning jobs, directly boosting the demand for premium rental properties in cities that are still far more affordable than the capital.
Regeneration: Mega-projects like HS2 (driving Eastside, Birmingham growth) and massive city-centre redevelopment schemes (like those in Manchester and Leeds) are backed by both private and public capital, ensuring that the infrastructure and amenities required to support a premium tenant base are continually improving.
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Frequently Asked Questions
Is buy-to-let a good investment?
If you were to measure how ‘good’ a buy-to-let investment is based on its past performance, this asset would probably come out on top. However, different assets will suit some more than others based on their financial goals.
If you’re looking for a resilient asset that can offer a passive income as well as the opportunity for capital growth, buy-to-let property could be the best asset for you.
With JLL suggesting that UK property values could see a cumulative boost of 19.9%, and a rental price boost of 17.1% until 2029, forecasts suggest that buy-to-let property could be the route to financial freedom for many investors.
Is buy-to-let worth it?
When it comes to investing there’s generally no ‘one size fits all’ approach and buy-to-let property will suit some investors more than others.
However, for those who are looking for a long-term investment asset with a track record of competitive growth and more price increases on the horizon, buy-to-let is often the best option.
Buy-to-let is a flexible investment assets and can offer diversification across a wider portfolio. It’s historically one of the most stable assets and is much less exposed to external factors, plus it’s a physical asset, which makes it appealing with certain investors.
The answer to ‘is it worth it?’ depends entirely on how you use it. If you use it as a long-term asset, it’s proven to be a potentially lucrative investment vehicle that can be scaled effectively.
How to start investing in property?
For those that want to know how to start investing in property, the most successful investments often start with a clear financial plan.
By understanding your investment goals, you’ll be able to determine which asset is best for reaching your objectives and how it can be scaled.
More specifically, this could be an asset that offers higher short-term returns or a property built for a longer holding pattern.
Once you understand this, you can start deciding on locations, property sizes and tenant demographics you might want to target.
Finally, you’ll then be able to explore finance options and partners that you can work with.
Why invest in UK property?
UK property is recognised as one of the most appealing investment assets across the world. In comparison to other markets, the UK property market is not only resilient, but it can offer consistent short- and long-term returns.
While rental income can usually cover the monthly payments of the property and then some, this asset also grows over time. UK property prices have been on a consistent upward trajectory and have recovered well from the unease of 2021’s pandemic property market which saw some sharp peaks and troughs: a testament to the long-term resilience of this asset class. What’s more, the average property is worth 48% more now than it was a decade ago according to the Land Registry UK House Price Index, demonstrating the potential for capital growth.
The answer to ‘is it worth it?’ depends entirely on how you use it. If you use it as a long-term asset, it’s proven to be a potentially lucrative investment vehicle that can be scaled effectively.
Where to invest in buy-to-let in the UK?
Understanding where to invest in buy-to-let in the UK continues to be a tough decision for many investors, especially with so many potential locations in the country.
The best way to answer this question is to establish what you’re looking to achieve. Do you have short or long-term goals? Are you looking for capital growth or rental yields?
If you’re looking for more immediate rental returns, you’ll need a location with high yields and strong tenant demand. Look to established cities such as Birmingham and Manchester which have undeniably strong tenant demand, great job opportunities and an abundance of inner-city amenities.
On the other hand, if you’re investing for capital growth, you’ll want to identify areas that are regenerating and redeveloping the surroundings. This kind of activity often pushes property prices higher, which can deliver appreciation over time. Look to up-and-coming cities that are attracting those participating in the London exodus and experiencing swathes of regeneration, such as Leeds.
Will prices fall in the UK?
There is no strong evidence that UK property values will fall in the next few years. Predictions from the likes of Savills and JLL agree that the property market is on a strong path of continued growth, with each year until 2028 forecast to experience at least 2% property price growth and 3% rental price growth according to JLL.