As an investor looking to diversify your portfolio beyond the London property market, the United Kingdom offers appealing opportunities nationwide. Cities outside and near London are seeing property prices rise faster while rental yields remain strong.
Places like Manchester, Birmingham, and Leeds are experiencing significant regeneration and infrastructure investment, positioning them as some of the best places to buy outside London. With a trusted partner like Baron & Cabot, you can gain exclusive access to off-market developments in growth areas primed to deliver substantial returns. The time to invest in the UK’s regional property markets is now — a new world of high-performing investments awaits outside London.
Top 7 Towns for Capital Growth Outside London
As an investor looking for the best places to buy property outside London, there are several locations to consider for long-term capital growth; the top 7 spots include the following:
- Manchester
- Birmingham
- Leeds
- Bristol
- Liverpool
- Nottingham
- Bracknell
1. Manchester
Manchester has a booming economy and employment market, primarily driven by the technology and creative sectors. House prices in Manchester rose by 14.7% between December 2021 and December 2022, indicating substantial growth potential. Suffice it to say, the thriving city of Manchester offers a range of properties and potential returns. Browse our property listings in Manchester here to explore the up-and-coming area, or take a look at our Northill tower apartments.
2. Birmingham
Birmingham is undergoing significant regeneration, with extensive investment in infrastructure and development. The city’s population is expanding rapidly, and demand for housing continues to outstrip supply, suggesting opportunities for price appreciation over the coming years. What’s more, the proposed HS2 rail network will slash travel time to London to an impressive 49 minutes, encouraging commuting between the two towns.
Looking to invest in Birmingham’s promising market?
Explore various investment options and capitalise on the city’s growth potential. Start your property search in Birmingham now. If you’re looking to invest in a central location, take a look at The Axium.
3. Leeds
Leeds is a central hub for financial and business services, with a fast-growing population and economy. New developments are sprouting up across the city to meet demand, and asking prices for homes in Leeds climbed by 15.3% in 2022, demonstrating its investment prospects. You can start investing by exploring many properties and taking advantage of the city’s booming economy. Begin your property search in Leeds today!
4. Bristol
Bristol has a thriving job market centred around aerospace, technology, and tourism, along with two leading universities. The picturesque city attracts many students, young professionals, and families seeking housing, placing upward pressure on property prices. House prices in Bristol increased 13.6% in 2022, hinting at its potential for capital growth.
5. Liverpool
Liverpool has undergone significant regeneration in recent years, making it an attractive location for property investors. Ranked among the up-and-coming property areas in the UK, the city has a solid rental market driven by its vibrant cultural scene and thriving student population.
Liverpool also benefits from excellent transport links and a growing economy, particularly in the digital technology, healthcare, and education sectors. Discover a range of properties in this city of regeneration and strong rental demand. Explore our property listings in Liverpool and seize the opportunity!
6. Nottingham
Nottingham is a city with a diverse economy and a rich history. Thanks to its two universities and large student population, it has a solid rental market.
Nottingham is known for its high rental yields of up to 8.2%, making it an appealing choice for buy-to-let investors. The city also boasts a growing creative and digital sector, further contributing to its investment potential.
Looking to capitalise on Nottingham’s rental market and diverse economy?
Explore a variety of investment properties and high rental yield opportunities. Begin your property search in Nottingham here. If you’re looking to invest in some incredible townhouses by the River Trent, have a look at Trent Bridge Quays
7. Bracknell
Located in the Thames Valley, Bracknell has seen significant investment and development, making it an emerging hotspot for property investment. Although not well-known in the UK, the town benefits from its proximity to London and excellent transport links, attracting residents and businesses.
Bracknell is expected to benefit from the future growth of the tech sector, with several technology companies and business parks already established in the area. Explore investment properties in this technology-driven town with excellent connectivity. Start your property search in Bracknell here!
At Baron & Cabot, our experts have identified these locations as some of the top towns outside London for capital growth based on market trends and forecasts. We have high conviction in the investment viability of residential property across these areas and anticipate solid and long-term returns for investors. You can confidently gain exposure to the UK’s most promising regional housing markets by purchasing an investment property with us — contact us now to get started.
The Best Towns Around London for Rental Yields
In addition to capital appreciation, identifying towns with solid rental yields should be your top priority when considering the best London commuter towns for property investment — both of which the expert team at Baron & Cabot considers when sourcing property.
Rental yield refers to the annual rental income received as a percentage of the property’s value. Towns with higher yields often represent better investment opportunities.
According to recent studies, some of the best towns in the UK for rental yields include the following:
- Liverpool
- Manchester
- Glasgow
1. Liverpool
Liverpool’s cultural renaissance and improved infrastructure have made it an attractive city for young professionals and students. As demand rises, so do rents and property prices. Average yields in Liverpool reach as high as around 9.79%. You should check out our Liverpool property listing to exploit its potential.
2. Manchester
Manchester is a leading business, culture, and higher education city. Its popularity and economic growth fuel high demand for rentals, with average yields of 6–7%. When buying a property in the UK, consider properties near the city centre and universities, as they tend to have the highest yields — check them out here.
3. Glasgow
Glasgow is Scotland’s largest city and a hub for business and culture. Our recent research reveals its affordability and quality of life appeal to renters, with average yields of around 6.8%. Proximity to universities and city centres is again optimal for the highest yields.
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Based on current market conditions, these locations represent some of the best opportunities for generating income from your property investment. At Baron & Cabot, our dedicated research team uses a 122-point due diligence checklist to closely monitor market trends and identify towns where your investment will likely produce substantial, long-term returns. We use advanced data and analytics to pinpoint the most promising areas, so you can invest confidently.
The Most Affordable Towns Within 1 Hour of London
If affordability is your goal, here are three of the most affordable commuter towns around London that you can invest in on a budget while still seeing the best returns:
- Luton
- Reading
- Slough
1. Luton
Just 50 minutes by train from London, Luton is one of the best commuter towns north of London, offering affordable house prices and property investment opportunities. The average house price in Luton is £320,684, significantly lower than the UK’s average house price of £372,812. Rental yields are also attractive at an average of 4.7% due to solid demand from commuters and the nearby Luton Airport.
2. Reading
A historic town only 50 minutes to London by bus, Reading’s housing market provides solid investment potential. The average house price here is £436,063, and rental yields are 4.5%.
Reading’s economy is thriving, with major employers like Oracle, Yell, and Prudential. The town attracts commuters working in London or the nearby Heathrow Airport, and it also doubles as one of the most affordable towns around London. Reading’s fast connections to London, robust job market, and competitive property prices make it an attractive market for buy-to-let investors.
3. Slough
Just 35 minutes by train from London Paddington, Slough is one of the most affordable towns within easy reach of London. House prices in Slough average £434,860, with rental yields of 3.7% due to its popularity with commuters.
Slough’s business parks and trading estates host corporate headquarters for brands like Mars, Ferrero, and Telefonica O2. The town’s employment base and transport links to London support a steady stream of renters and buyers, even during economic downturns. For investors wanting high rental demand and value stability near London, Slough warrants a look.
These locations balance lower housing costs with proximity and fast rail and road access to London, a winning combination for buy-to-let investors seeking stable, long-term returns. With demand for rental property perpetually outstripping supply, investing in the towns surrounding London can be a pathway to financial success. Contact the Baron & Cabot team today to discuss your options.
Towns Boasting the Best Schools and Transport Links
When choosing the best places to buy property outside London, examine the quality of schools and transportation infrastructure. Locations with reputable schools, shopping centres, and efficient transport attract more residents, driving up demand for housing and stabilising property prices and values.
High-Ranking Schools
Towns featuring top-rated primary and secondary schools will draw families with school-age children. Some of the highest-ranking state schools are in towns like Guildford, Winchester, and Chelmsford. Investing in property near prestigious schools provides more potential tenants and higher rents.
Advanced Transportation
Areas offering convenient access to major cities and transportation hubs will appeal to commuters and investors alike. Towns along key rail lines or near international airports, like Reading, Milton Keynes, or Luton, provide direct connections to London and beyond. Property prices in well-connected towns have steadily grown due to constant demand.
When it comes to transport links, we usually consider the following before choosing a town for investment at Baron & Cabot:
- Rail Links: High-speed and express train services into city centres are highly desirable. We look for towns along major rail lines with frequent, fast service.
- Road Networks: Towns near primary road arteries and motorways providing unencumbered access to cities and transportation hubs merit consideration.
- Air Travel: For investors interested in student housing or short-term rentals, proximity to international airports is ideal. Towns within 60 minutes of significant airports tend to experience solid occupancy rates and returns.
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Choosing a town with reputable schools, independent shops, and advanced transport links is a prudent strategy for property investment outside of London. These attributes make a location attractive to residents and support consistent demand for housing, which helps to stabilise property prices over the long term. Towns fitting this profile across the UK offer investors promising opportunities beyond the capital city.
The Best Regions to Buy Outside London
If you seek guaranteed rental yields and capital appreciation over the long term but don’t want to dabble in London’s real estate market, the UK offers several regions with promising growth.
Here are the top three to look into:
- East of England
- The North and Midlands
- The South West
1. East of England: Affluent Towns and Seaside Resorts
The counties of Essex and Suffolk consist of some of the best places to buy property outside London. Properties in towns like Chelmsford, Colchester, and Ipswich provide solid investment potential.
Chelmsford is an affluent town with excellent rail links to London. It’s home to many large businesses and offers a range of new build developments and period properties. Property prices have significantly risen in the last five years, indicating strong demand.
The historic city of Colchester is one of Britain’s fastest-growing towns. It offers a lower cost of living than London, with average house prices around £327,534 — significantly lower than the national average of £320,684. More interestingly, Colchester’s job market and infrastructure are expanding to match population growth, which will result in even higher demand for rental properties.
Ipswich, the county town of Suffolk, has a beautiful historic centre and marina. Its housing market provides good value, with the average home selling at £281,116. Ipswich is a centre for business, especially in sectors like insurance, contributing largely to increased rental demand.
2. The North and Midlands: Industrial Heartlands and Rural Retreats
Here are the best places to buy properties in the North and Midlands of England:
The North of England
Notable cities like Manchester, Leeds, and Liverpool are some of the best places to buy outside London, attracting businesses and residents. House prices in the North have risen consistently in recent years, and rental demand is high, promising steady returns.
Manchester, a solid commercial and industrial base, is a focal point for economic growth. The city aims to create 36,000 new homes by 2032 to meet demand, indicating opportunities for buy-to-let investors. Leeds also presents a robust rental market, with increasing demand for high-quality city-centre apartments.
The Midlands
Birmingham anchors the Midlands, Britain’s second-largest city, and is undergoing massive regeneration. The metro area needs 80,000 new homes by 2031, so property values will likely climb over the long term. Investors can find profitable properties in smaller Midlands cities like Leicester, Nottingham, and Derby, which offer lower living costs and easy access to lively business centres.
Rural retreats in counties like Lincolnshire, Shropshire, and Herefordshire also offer havens for investment, with idyllic market towns and picturesque countryside attracting residents seeking respite from city life. Though house prices and rents are typically lower in these areas, limited supply and growing demand indicate the potential for steady returns over time.
If you’re a foreigner buying property in the UK, the North and Midlands regions present many real estate investment alternatives to London and the South East. With significant infrastructure improvements planned, proximity to natural beauty, and regeneration transforming once-struggling cities into cultural and commercial hubs, this broad swath of Britain deserves a closer look. By partnering with reputable UK property investment experts focused on high-yield projects, you can access an asset class with the potential to generate income and strong capital growth for decades.
3. The South West: Beautiful Coastline and Strong Economy
The South West region offers investors an appealing combination of natural beauty, cultural attractions, and economic opportunity. Centred around Bristol, the South West offers some of the best places to buy property outside London, primarily due to the following factors:
Thriving Regional Economy
The South West has a diverse, fast-growing economy with crucial aerospace, creative and digital industries, and tourism. Significant employers include Airbus, Rolls-Royce, and Hewlett-Packard. What’s more, the region has a highly educated workforce, with over 30% of residents holding a degree or equivalent qualification.
Beautiful Natural Surroundings
From the Jurassic Coast in Dorset to the Cornish beaches, the South West is filled with stunning natural scenery, attracting millions of visitors yearly. Coastal towns like St. Ives, Padstow, and Exmouth are popular holiday destinations with high seasonal demand for short-term rentals. Investing in a holiday home or rental property in one of these locations could provide strong returns.
Inland, the Cotswolds region is another highly desirable location, known for its picturesque stone villages, historic buildings, and quintessential English countryside. Prime Cotswolds properties are prestigious and hold their value well over time. For those seeking an idyllic country retreat or second home, the Cotswolds would be an ideal place to invest in property.
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With its vibrant economy, natural beauty, and popularity as a holiday destination, the South West region offers prospective property investors an appealing combination of lifestyle and opportunity. The potential for capital growth, high rental demand, and consistent returns make locations like Bristol, the coast, and the Cotswolds attractive places to invest in UK property outside of London. Contact us to learn more about how to start investing right away.
FAQ: The Best Places to Buy Outside London
Where is the cheapest place to buy a house outside London?
Shildon, located in County Durham, is one of the cheapest places to buy a house outside London. Shildon offers affordable house prices, with an average property price of £98,968, making it an affordable option for potential buyers.
But when investing in properties, you should look beyond the price because lower property prices don’t always equate to higher yields. That’s why at Baron & Cabot, we always choose locations with high rental yields and the potential for good returns in the long term, such as Liverpool, Manchester, Leeds, etc.
Where is the best place to buy a house near London?
Bracknell is an excellent choice for those seeking proximity to London. With its convenient location, excellent transport links, thriving economy, natural surroundings, and expansive amenities, Bracknell offers a balanced lifestyle between urban convenience and access to nature. Before making any decision, it’s advisable to consult with local real estate experts to find the perfect home in Bracknell.
Conclusion
With many areas ranking among the best places to buy outside London, now is the perfect time to invest in property across the UK. Find a development that matches your goals, and take that first step towards building your real estate portfolio with Baron & Cabot.
The rewards of becoming a property owner and securing your financial future await you. Don’t miss out on this chance to establish a legacy of wealth that will benefit you and your loved ones for generations to come. The UK property market is booming, and savvy investors are already staking their claim — contact us today to get started.
Disclaimer: Any information provided by Baron & Cabot does not constitute financial advice and is for educational purposes only.
