As an investor looking for up-and-coming property areas in the UK, it can be confusing to determine which regions are poised for growth. However, the expert team at Baron & Cabot has conducted in-depth research to outline the specific UK locations where property values are currently increasing and likely to surge in the coming years.
If you’re keen on taking advantage of the continually growing UK real estate market, you should have these cities and towns on your radar. From revitalised city centres to pleasant towns within commuting distance of London, opportunities abound for those willing to take a chance on the next rising stars in the UK real estate market.
An Overview of the 8 Best Property Investment Areas in the UK
Before we go in-depth into these UK real estate regions and why they’re poised for growth, here’s a quick summary to get you started.
| City | Population | Rental Yields (Average) | House Price (Average) |
| Birmingham | 863,000 | 6.6% | £279,332 |
| Manchester | 2,791,000 | 6–7% | £304,988 |
| Derby | 263,000 | 4.20% | £241,050 |
| Leeds | 812,000 | 6.30% | £257,048 |
| Liverpool | 917,000 | 5.4–6.6% | £219,395 |
| Leicester | 566,000 | 4.19% | £279,343 |
| Cardiff | 488,000 | 3.86% | £302,720 |
| Glasgow | 1,698,000 | 6.8% | £208,464 |
1. Birmingham: A Northern Powerhouse for Property Investment
As the UK’s third-largest city in terms of population, Birmingham offers significant potential for property investment due to major regeneration and infrastructure projects. We’ve put together cogent reasons below to further support why it’s also among the best places to invest in property in the UK.
- Birmingham’s population growth and economic expansion have outpaced the national average (1,2), indicating strong demand for housing. The city’s economy has diversified from traditional manufacturing into business, retail, and tourism sectors.
- In recent years, Birmingham’s rental yields and capital gains have exceeded the UK average (up to 6.6% vs. 4.75%).
- Birmingham’s connectivity is set to improve with the completion of the HS2 rail network, reducing travel time to London. The new high-speed rail link will increase Birmingham’s attractiveness to businesses and residents.
- Birmingham city centre is undergoing a £10 billion regeneration program (Big City Plan), including new commercial and residential developments. Areas like Digbeth and Southside are transforming into vibrant cultural and creative districts.
- The city also has exceptional international links, with Birmingham Airport hosting the ability to travel nationally and globally to over 150 destinations across the world.
With lower average house prices compared to other thriving up-and-coming areas in the UK, and the predicted growth of the city, the opportunities for investment in Birmingham are unlike any other.
Overall, Birmingham exhibits the essential characteristics of an emerging property hotspot: strong economic and population growth, improved infrastructure, urban regeneration, and attractive investment returns. For buy-to-let investors, Birmingham warrants to be known as an up-and-coming area with outstanding potential for value appreciation and long-term rewards. The city is cementing its status as a hub for business in the 21st century. Check out our Birmingham developments for viable investment options with promised returns.
2. Manchester: A Cultural Hub With a Strong Economy
As one of the UK’s largest and most vibrant cities, Manchester is one of the best property investment areas in the UK. Its robust economic foundations and popularity with residents and businesses mean it’s poised for considerable growth in the coming years.
Manchester’s economy has diversified rapidly in recent decades. Once dominated by textile manufacturing, today, it’s a hub for various industries like tech, finance, and creative sectors. Prominent companies headquartered in Manchester include The Hut Group and musicMagpie. The city also has a thriving digital tech scene, with over 1,600 tech businesses generating £4.98 billion for the local economy in 2018 alone.
The city’s cultural attractions and events draw over 1.15 million visitors annually. Manchester is renowned for its music scene, art galleries, museums, shopping, nightlife, and food. The increasing popularity of the city centre has led to extensive redevelopment, with new residential buildings, restaurants, hotels and improved public spaces.
Furthermore, transport links in Manchester are excellent, with an international airport serving 199 destinations. The city will also benefit from drastically improved rail connectivity via HS2.
Due to strong economic and population growth, demand for property in Manchester is high. Residential property prices have risen by 75% in the last decade, and rental yields for buy-to-let investors are attractive at around 6–7%. With significant regeneration plans, property values will likely continue appreciating substantially over the coming years.
Manchester should be at the top of the list for investors seeking an exciting city with huge potential. The city’s dynamism, economic vitality and popularity make it an extremely compelling location for property investment now and for years to come. If you plan on having a slice of the city’s real estate, check out our Manchester developments to get started.
3. Leeds: Fastest Growing Northern City With Exciting Opportunities
As the fastest-growing city in the North of England, Leeds presents exciting opportunities for property investment. With a thriving economy based around financial services, retail, and transportation, Leeds offers high-quality jobs and a skilled workforce.
This prosperous city also provides affordable housing options, especially compared to the South of England. For savvy investors, Leeds easily passes as an up-and-coming property area in the UK, and for valid reasons outlined below.
- The city centre has seen extensive redevelopment, with high demand for modern flats and city centre living opportunities. Areas like The Calls and Brewery Wharf have become popular residential neighbourhoods.
- Inner suburbs like Headingley, Meanwood and Chapel Allerton offer green, family-friendly living within a few miles of the city centre. Edwardian and Victorian houses could make solid investments, with strong potential for price growth over the coming years.
- Outer areas like Morley, Rothwell and Garforth provide more budget-friendly options for those who commute into the city centre. With strong road and rail links coupled with more open space, these up-and-coming suburbs could appeal to first-time buyers and families alike.
Leeds deserves consideration for investors seeking an alternative to higher-priced areas in the South of England. This exciting city offers prosperity, job opportunities, culture, natural beauty, and relative affordability.
Astute property investors could find Leeds and its surrounding areas fertile ground for purchasing a valuable home that gains significant value over the coming decade. There’s no better time to take advantage of this opportunity than now — browse our Leeds developments to get started.
4. Liverpool: Home to Progressive Regeneration Projects
As Liverpool’s rejuvenation progresses, several neighbourhoods in the city are enlisting among the best property investment areas in the UK for investment. For investors seeking opportunities in this revitalising city, the following locations deserve close consideration:
a. The Baltic Triangle
The Baltic Triangle has become a hub for digital and creative businesses. This former industrial district has many technology startups, design firms, and restaurants. Property values in this trendy area will likely continue to rise over the coming years.
b. The Knowledge Quarter
The Knowledge Quarter surrounding Liverpool University and the Royal Liverpool Hospital is a key research and innovation centre. New student housing, apartments, and amenities are springing up in this area to support the growing knowledge economy. Investments in this zone will likely offer strong long-term growth potential.
c. Liverpool Waters
Liverpool Waters, once one of Europe’s busiest ports, is now the site of an ambitious 60-hectare redevelopment that will include residential properties. Prices for existing buildings and new developments in this historic dockland location are still affordable but poised to increase substantially as the project progresses.
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In summary, for investors seeking to benefit from Liverpool’s ongoing renaissance, the Baltic Triangle, Knowledge Quarter, and Liverpool Waters present promising opportunities to acquire property at a good value with the prospect of solid returns over time. As an investor, you can participate in the city’s revitalisation and prosperous future by securing properties in these up-and-coming areas. See our Liverpool developments for viable opportunities you can take advantage of today.
5. Derby: An Up-and-Coming Property Hotspot
Derby has emerged as an attractive property investment destination in recent years, and it’s not difficult to see why. The city boasts a rapidly growing population, exciting regeneration projects, and strong forecasted capital growth. As the UK’s most central city, Derby’s property investments are popular due to new business opportunities and rising demand for housing.
One of the key factors contributing to Derby’s appeal is its excellent transport links. These connections make it an ideal location for companies and employees, further bolstering the city’s property market.
Additionally, the local heritage and culture effectively promote future growth, making Derby a strong contender for the City of Culture. With ongoing regeneration projects and a rising property market, now might be the perfect time to consider investing in Derby.
6. Leicester: A Promising Property Investment Destination
Leicester has been gaining attention as one of the best investment areas in the UK, and it’s easy to see why. The city’s thriving economy, diverse demographic, and ambitious regeneration projects make it an ideal location for property investors. With a young and growing population, increasing demand for rental properties, and a strong focus on future development, Leicester is well-positioned for continued growth and success.
A key driver of Leicester’s property market is its excellent connectivity to other major cities in the UK. With convenient access to London, Birmingham, and Manchester via rail or road networks, Leicester is an attractive location for both businesses and residents. Furthermore, the city’s two universities—the University of Leicester and De Montfort University—contribute to a thriving student market, generating a steady demand for rental properties.
Leicester’s ambitious regeneration projects are also a significant factor in its rising property market. For example, the £300 million Leicester Waterside project transforms a previously underutilised area into a vibrant mixed-use development with new homes, offices, and retail spaces.
As the city continues to evolve and develop, now could be the perfect time to explore property investment opportunities in Leicester.
7. Cardiff: An Up-and-Coming Investment Area for Buy-to-Let Investors
- Population: 488,000
- Rental Yields: 3.86%
- Average House Price: £302,720
Cardiff, the capital of Wales, is emerging as one of the favourite up-and-coming property areas in the UK. With its strong rental market, ongoing infrastructure development, and thriving economy, Cardiff offers attractive opportunities for those looking to invest in the buy-to-let property sector.
Growing Rental Market
Cardiff’s rental market has experienced significant growth in recent years, making it an attractive prospect for buy-to-let investors. The city’s expanding student population, thriving business sector, and the increasing number of young professionals seeking rental accommodation have fueled the demand for rental properties. This demand provides investors with the potential for consistent rental income and a stable return on investment.
Infrastructure Development
Cardiff is undergoing significant infrastructure development, which further enhances its investment potential. Projects such as the Central Square regeneration scheme, the ongoing expansion of Cardiff Bay, and the planned South Wales Metro are transforming the city’s landscape and boosting property values. These developments also improve transport links, amenities, and overall livability, making Cardiff an appealing choice for tenants.
Thriving Economy
Cardiff boasts a vibrant and diverse economy that contributes to its investment appeal. The city is home to a range of industries, including finance, creative industries, technology, and higher education. This economic diversity supports a strong job market and attracts a skilled workforce, driving the demand for rental properties. Investors can benefit from the stability and potential growth that Cardiff’s flourishing economy offers.
8. Glasgow: Affordable Property Prices and a Growing Rental Market
- Population: 1,698,000
- Rental Yields: 6.8%
- Average House Price: £208,464
Glasgow, the largest city in Scotland, has been gaining attention as an up-and-coming property area in the UK. With its affordable property prices, growing rental market, and potential for future growth, Glasgow offers an attractive proposition for those looking to enter the property investment market.
Affordable Property Prices
One of the main advantages of Glasgow as an investment area is its affordability. Compared to other major cities in the UK, like London, Edinburgh, etc., property prices in Glasgow are relatively lower, allowing investors to enter the market at a more accessible price point. This low entry point makes Glasgow an attractive option for both experienced investors and those new to the property market.
Growing Rental Market
Glasgow boasts a strong and growing rental market — a crucial consideration for buy-to-let investors. The city’s vibrant economy, renowned universities, and cultural attractions generate a steady demand for rental properties. This demand provides investors with a consistent source of rental income and the potential for long-term returns on their investment.
Regeneration and Development Projects
Glasgow has been undergoing significant regeneration and development in recent years, further enhancing its investment potential. Various urban renewal projects, such as the Clyde Waterfront and the Glasgow City Innovation District, are revitalising different areas of the city. These projects not only improve the overall infrastructure but also have a positive impact on property values and rental demand.
Strong Economic Outlook
The economic outlook for Glasgow is promising, with various industries contributing to its growth. The city has a diverse economy, encompassing sectors such as finance, technology, tourism, and creative industries. This economic diversity helps to create a resilient property market, making Glasgow an attractive destination for investors seeking stability and long-term growth potential.
Looking ahead, Glasgow shows excellent potential for future growth. The city has positioned itself as a major hub for innovation and investment, attracting businesses and talent. This influx of economic activity and population growth is expected to drive up demand for housing, presenting opportunities for buy-to-let investors to benefit from capital appreciation and rental income growth.
FAQ: Up-and-Coming Property Areas in the UK
What is the best up-and-coming area in the UK?
It’s difficult to pinpoint a single “best” up-and-coming area in the UK, as the right choice depends on individual investment goals, budget, and preferences. However, cities like Manchester, Birmingham, and Leeds have been consistently featured as top contenders for property investment due to their strong economies, growing populations, and ongoing regeneration projects. It’s essential to consult an experienced property investment specialist to make the best decisions.
Where is property increasing the most in the UK?
Property is increasing most in cities such as Manchester, Liverpool, and Birmingham. These areas have witnessed strong demand for housing, driven by factors like population growth, job opportunities, and ongoing regeneration projects.
Which parts of the UK are the most crowded?
The most crowded parts of the UK are typically the major urban areas, with London being the most densely populated city. Other densely populated cities include Birmingham, Manchester, and Glasgow. England generally has a higher population density than Scotland, Wales, and Northern Ireland, with the Southeast and Midlands regions experiencing significant population concentrations.
Conclusion
The best up-and-coming property areas in the UK are those poised to generate considerable rental yields and capital value appreciation in the long term. As an investor, you should consider locations like Birmingham, Manchester, Leeds, and Liverpool. These cities have solid fundamentals for continued development and price appreciation over the coming years.
Even smaller areas such as Nottingham and Bracknell demonstrate upward trends that signal opportunity. While London will likely always remain the UK’s most prestigious market, for those looking to get into the property game at a lower cost of entry, the country has no shortage of up-and-coming areas poised to deliver solid returns on investment. The time to make your move into UK real estate is now — get started by contacting us today!
Disclaimer: Any information provided by Baron & Cabot does not constitute financial advice and is for educational purposes only.
