Top Areas For Real Estate Investment
Property investors across the UK and Ireland are continually seeking regions that offer the best balance of high rental yields, long-term capital growth and strong tenant demand.
In today’s market, driven by post-pandemic urban shifts, regeneration projects, and evolving economic trends, certain cities and regions stand out as prime locations for investment. This research document provides an in-depth look at the top areas for property investment across the UK and Ireland, examining not only where investors are focusing their attention in 2025 but also why these locations continue to deliver reliable returns and future growth potential.
North East & North West
(Sunderland, Liverpool, Bradford, Manchester, Hull, Newcastle, Burnley)
These regions are currently delivering some of the highest rental yields across the UK. Sunderland, Liverpool, and Bradford report gross yields in the 7–8% range, with the North East averaging around 15.4% for HMO investments. This makes them highly attractive to landlords seeking strong income returns. Major urban regeneration and infrastructure upgrades, such as Liverpool Waters and the Knowledge Quarter, also help support capital growth. According to Pat Harper of Total Property Group, Liverpool has seen a huge uptake in property investment, due to the high yields and value for money factors.
Manchester Property Investment Findings
Manchester remains a cornerstone of property investment. It offers 6–7% rental yields (up to 12% in top-performing address zones) alongside strong growth potential—21.5% projected price increase over the next five years. It benefits from one of Europe’s largest student communities and expanding jobs in digital, creative, and professional services. High-profile developments like MediaCityUK, Salford Quays, and Airport City underpin long-term demand.
Leeds Investment Findings
Often cited alongside Manchester for Northern investment appeal, Leeds sees 6–7% yields, driven by growth in professional jobs and big infrastructure projects, including HS2 connections and investments in Hyde Park, Headingley, and inner-city zones.
Birmingham Property Investment Findings
With average yields of 5.4–6%, Birmingham represents the Midlands’ investment pivot. Ongoing projects, HS2’s Curzon Street station, the Jewellery Quarter redevelopment, and Digbeth’s creative hub, support rental and value growth.
Glasgow Property Investment Findings
Scotland’s largest city presents high-yield opportunities (7–8%), especially with no stamp duty under £145k. Strong demand, driven by students and young professionals, plus limited rental housing supply, keeps yields elevated.
Dublin Property Investment Findings
As the capital, Dublin offers yields between 6.2–8%, propelled by tight rental supply, student demand, and a multinational-driven economy. While government rent controls add complexity, economic fundamentals remain strong and yield-gap attractive despite construction cost pressures.
Cork & Galway
Riding Ireland’s national economic growth (~4% in 2025) and similar multinational influence, both cities offer solid yield prospects and rising demand from students and professionals. These smaller cities benefit from affordability compared to Dublin while still enjoying strong fundamentals.
High Rental Yields
Northern and regional UK cities deliver significantly higher yields (7–15%) compared to London. These returns are supported by affordable entry prices and strong rental demand.
Regeneration & Infrastructure
Cities such as Manchester, Liverpool, Leeds, and Birmingham benefit from transformational developments: HS2 rail links, waterfront regeneration, MediaCity, Curzon Street station, and the Liverpool Freeport are enhancing long-term value.
Tenant Demand
A rise in students, young professionals, creatives, and foreign workers fuels strong rental markets in these cities. In Ireland, multinational firms continue to attract high-income residents to Dublin, Cork and Galway.
Future Growth
Experts forecast 19–22% capital growth in cities like Birmingham, Manchester, Leeds, Bristol, and Edinburgh over the next four to five years.
Economic Resilience
Ireland’s property market benefits from low interest rates and economic confidence, while UK regional cities benefit from diversification away from London .
Final Thoughts
Investors seeking robust rental income and capital appreciation should consider regional UK hotspots outside London. These cities offer affordability, regeneration, tenant demand, and strong fundamentals. Ireland’s major cities remain appealing with strong GDP growth and high rental demand. For those prioritising yield, rental strength, and future value, these areas present compelling, data-backed investment opportunities.