As of mid-2025, the UK property market is experiencing an unexpected resurgence, particularly in select regional hotspots that have benefitted from regeneration projects, infrastructure investment, and shifting demographic and economic trends.

Below, we explore the key areas where property investment is booming, and why savvy investors are capitalising on the momentum.

Northern Powerhouses: Manchester, Leeds, Birmingham & Liverpool

Liverpool

Liverpool’s transformation is no longer a surprise; it’s a model of how post-industrial cities can reinvent themselves through culture-led regeneration, strategic investment, and grassroots creativity.

“Liverpool stands out as the UK’s most compelling property investment location right now. With its unbeatable combination of low entry prices, high rental yields, and massive regeneration across the waterfront and creative districts, the city offers investors exceptional value and long-term growth potential. We believe Liverpool is at the beginning of a golden decade for property investment.”

Pat Harper, Director at Total Property Group – Property Investment Company

Baltic Triangle – Liverpool’s Creative Engine

The Baltic Triangle has evolved from a neglected warehouse district into one of the UK’s most vibrant creative quarters. Once home to derelict industrial units, it now features:

Converted loft apartments, co-working spaces, and boutique studios: That caters to designers, musicians, and tech entrepreneurs.

Popular destinations like Baltic Market, Camp and Furnace, and Red Brick Vintage draw thousands of residents and tourists weekly.

Proximity to Liverpool ONE and the waterfront enhances the area’s appeal to young professionals.

Property Snapshot: Demand for modern apartments in the Baltic Triangle has driven steady capital growth, with yields commonly in the 6 – 8% range. Off-plan developments are often oversubscribed.

The Knowledge Quarter – Education Meets Innovation

Stretching from Lime Street to Paddington Village, the Knowledge Quarter is central to Liverpool’s future as a knowledge economy. It is anchored by:

University of Liverpool and Liverpool John Moores University: Serving over 60,000 students.

RCP North and the Liverpool Life Sciences Accelerator:  Supporting world-class research in health, genomics, and medical technology.

The £1 billion Paddington Village development: A 30-acre innovation district featuring the Spine (one of the UK’s healthiest buildings), hotels, and international student accommodation.

Impact for Investors: The growing ecosystem of students, researchers, and professionals creates sustained rental demand, especially for premium studios and HMOs near Mount Pleasant, Islington, and Kensington.

Investor Insight: Why Liverpool is a Strategic Play

Low average entry price of £130k–£160k compared to £500k+ in London.

Rental yields of 6–8%, often higher in HMOs or purpose-built student accommodation (PBSA).

High tenant demand from students, creatives, and young professionals ensures low vacancy rates.

Liverpool’s growing cultural cachet and strategic location (with HS2 connectivity to Manchester and beyond) make it a top-tier regeneration play for long-term investors.

Manchester

Manchester has firmly established itself as the UK’s leading city for regional property investment. Often dubbed the UK’s “second city”, it offers the perfect combination of economic dynamism, population growth, affordable entry points, and sustained regeneration, making it a top-tier location for both domestic and international investors.

Capital Growth and Housing Market Performance

Between 2021 and 2025, average property prices in Greater Manchester have surged by 18%, driven by:

A booming population forecast to exceed 630,000 by 2030, up from 553,000 in 2021.

Chronic housing undersupply: Especially in central districts, placing upward pressure on prices.

Ongoing urban renewal and lifestyle improvements: Attracting professionals and families alike.

Key growth areas: Ancoats, New Islington, and Castlefield are seeing rising prices due to their mix of heritage buildings, canal-side living, and proximity to the city centre.

Strong Rental Yields and Tenant Demand

Rental yields in Manchester average 6 – 7%, outperforming most southern cities. In targeted postcodes like M5 (Salford) and M14 (Fallowfield/Rusholme), yields can exceed 7.2%, especially in HMOs or student lets.

The city’s five universities support a student population of over 100,000, creating consistent demand for shared and purpose-built student accommodation (PBSA).  Areas like Hulme, Ardwick, and Withington offer high-yield opportunities within commuter or academic catchments.

Landlord trend: A growing number of investors are acquiring apartments in newer developments with concierge, gym, and co-working features, catering to young professionals seeking convenience and lifestyle.

Hot investment zones: Northern Quarter, Greengate, and Deansgate are already seeing uplift due to infrastructure upgrades and mixed-use planning.

Investor Insight: What Makes Manchester Stand Out

Affordability advantage: Despite recent growth, Manchester’s average prices (£250 -280k for city apartments) remain far below London’s (£500 – 600k), making it attractive to first-time investors. Diverse tenant base: Students, graduates, media professionals, and young families fuel resilient demand.

Proven ROI: The mix of yield and growth potential makes Manchester ideal for both income-seeking landlords and capital-focused investors.

Sustained policy support: Manchester City Council has a strong pro-development stance, simplifying planning processes for investors and developers.

Leeds

Leeds is evolving into a northern finance and tech hub. Key features:

Home to major firms such as: Channel 4 HQ, NHS Digital, and Sky Betting & Gaming.

Regeneration projects in South Bank and Holbeck Urban Village are transforming former industrial areas into modern living/work districts.

 Average yields range from 6.5% – 7.5% in student-heavy areas like Headingley and Hyde Park.

Investor Insight: Leeds benefits from a young professional and student population (over 60,000 students), fuelling consistent rental demand.

Birmingham

Despite the partial HS2 cutbacks, Birmingham has surged ahead with:

 £1.5 billion Smithfield redevelopment: Bringing in thousands of jobs and new homes.

Eastside & Southside projects reviving older districts into vibrant communities.

Rental demand spurred by five universities and a fast-growing tech sector.

Investor Insight: Birmingham offers a stable middle ground between London-level prices and Northern yields, making it ideal for balanced portfolios.

Emerging Midlands & Regional Towns

Derby

Often overlooked, Derby is quietly becoming an investment gem. Why?

Home to Rolls-Royce, Bombardier, and Toyota, the city offers stable employment.

Property prices still average below £200k, but projected to grow by over 20% by 2028.

Rental yields are among the highest in the Midlands, reaching 6%+ in city-fringe suburbs.

Investor Insight: Derby offers stability, strong local job demand, and excellent affordability for landlords with modest capital.

Halifax

Once known for its manufacturing heritage, Halifax is experiencing a property renaissance:

Affordable housing stock: With many terraces under £150k.

6 – 7% yields in areas like Pellon and Sowerby Bridge.

Recent regeneration of the Piece Hall, train station, and cultural amenities is drawing young professionals.

Investor Insight: Halifax is perfect for HMO and multi-let investors looking to maximise rental return on a budget.

Scotland & Northern Ireland

Edinburgh

Edinburgh is increasingly attractive to international investors, especially post-Brexit:

U.S. buyers are now the #1 international buyer group, drawn by relative affordability and quality of life.

Capital growth remains stable at 5 – 6% per annum in key districts like Leith and Bruntsfield.

Regeneration projects such as the St James Quarter are elevating Edinburgh’s retail and commercial landscape.

Investor Insight: While yields are lower (4 – 5%), Edinburgh offers prime long-term capital gains and high-demand holiday lets.

Glasgow

Glasgow has quietly become one of the UK’s most lucrative buy-to-let locations:

Average yields near 8%, particularly in Govan, Dennistoun, and Partick.

Three major universities keep student demand constant.

Investment in life sciences and FinTech is diversifying the job market.

Investor Insight: For investors focused on income generation, Glasgow’s yields are hard to beat while still offering long-term growth potential.

Belfast

Northern Ireland’s capital is one of the fastest-growing UK markets:

Annual house price growth reached 6.9% in 2025, outpacing the UK average.

Increased rental demand is being driven by returning expats, tech firms, and students.

Yields are holding steady at 7%+ in areas like Ormeau and East Belfast.

Investor Insight: Belfast is an excellent prospect for seasoned investors looking for emerging capital growth and strong income in a post-Brexit climate.

National Investment Trends

UK average house prices increased by 0.4% in July 2025: The biggest monthly rise this year.

Top performing regions include:

Northern Ireland: +9.3%

Scotland: +4.7%

Wales: +2.7%

Buy-to-let lending has surged, with Q1 2025 approvals up 38.9% year-over-year.

Landlord migration is occurring away from London (3% yields) to high-yield zones like:

Blaenau Gwent (11.4%)

Redcar & Cleveland (9.5%)

Stoke-on-Trent (7.8%)

Investor Insight: Landlords are re-evaluating traditional city-centre models in favour of regional growth, stronger yields, and reduced taxation risks.

UK Property Investment Hotspots – 2025 Summary Table

Region	Yield Range	Growth Drivers	Investment Style
Manchester	6–7%	MediaCity, HS2, employment growth	Buy-to-let, capital growth
Leeds	6–7.5%	Student demand, South Bank regeneration	HMO, student lets
Birmingham	5–6.5%	Regeneration, transport upgrades	Balanced BTL
Liverpool	6–8%	Creative districts, low prices	High-yield investments
Derby	5–6.2%	Stable employment, affordability	Entry-level investment
Halifax	6–7%	Cultural revival, affordable properties	HMO, terraces
Edinburgh	4–5%	Overseas interest, lifestyle city	Capital growth, Airbnb
Glasgow	7–8%	Student and tech-led rental demand	Yield-focused BTL
Belfast	7%+	Strong growth, expat returners	Balanced investment
Bradford	6–7%	City of Culture, visibility boost	Regeneration investment
Brent Cross Town	3.5–4.5%	Masterplan development, premium buyer interest	Long-term capital

Statistics supplied by The Property Association

In 2025, the UK property market defies a one-size-fits-all narrative. Regional cities and towns are driving growth, and investors are shifting away from legacy hotspots to chase better yields, sustainable regeneration, and genuine demand. Whether your strategy is income-based or growth-focused, the current climate offers outstanding opportunities across the UK, if you know where to look.