The UK property market is becoming increasingly regionalized, with significant differences in growth potential, rental yields, and demand across the country. In 2025, investors looking to maximize returns must understand where the opportunities lie and what factors are driving the appeal of certain locations. Below, we explore some of the most promising regional property hotspots in the UK this year.
Manchester remains a standout location for property investors in 2025. As a key hub of the Northern Powerhouse initiative, the city benefits from significant infrastructure investments, including the ongoing expansion of its tram network and the development of HS2, which will improve connectivity to London and other major cities.
The city’s population grew by 9.7% between 2011 and 2021, and it is projected to continue rising, fueled by an influx of young professionals and students. According to Joseph Mews, the average property price in Manchester is currently £234,867, significantly below the national average of £289,707. Rental yields are robust, averaging 6.1% which is above the 2024 national average of around 5.4%, with areas like Ancoats and Salford experiencing even higher returns due to high tenant demand.
The regeneration and growth of this region are reflected in the property prices it has seen over the years, in fact, the North West of England has seen the average house price rise by 5.7% over the past year. Manchester is forecasted to be the second-strongest city in house price growth by 2028, coming in just behind Birmingham.
Birmingham, the UK’s second-largest city, is another hotspot for property investment. The city has seen significant regeneration efforts, including the £700 million transformation of Paradise Circus and the Big City Plan, which aims to create 1.5 million square meters of new commercial and residential space.
The average property price in Birmingham is approximately £256,000, a figure below the national average, offering large growth potential. Rental yields in areas like Digbeth and Edgbaston range from 6% to 7%, driven by high demand from the city’s growing population, which is expected to reach close to 1.2 million by 2028.
Birmingham’s strong educational and employment prospects contribute to its appeal. The city hosts five universities and is home to major employers such as HSBC, PwC, and Jaguar Land Rover. Its vibrant rental market is bolstered by young professionals and students seeking high-quality accommodations close to the city centre.
Scotland’s property market is experiencing robust growth, particularly in its two largest cities. Glasgow offers affordable entry points for investors, with an average property price of £185,000. According to research by Property Data, rental yields in Glasgow average 7-8% in high-demand areas, making it one of the better-performing cities for UK buy-to-let investments.
Glasgow’s rental demand is driven by its large student population—over 115,000 students are enrolled across its universities—and ongoing urban regeneration projects, such as the £1.13 billion Glasgow City Region City Deal, which aims to boost employment and infrastructure.
In Edinburgh, the average property price is higher at £335,000, reflecting its premium market status. Rental demand remains strong, particularly in desirable neighbourhoods like Leith and Stockbridge, where yields range from 6% to 8%. Edinburgh’s economy is bolstered by its status as a financial hub and a major tourist destination, with over 4 million visitors annually.
Leeds has emerged as a key player in the UK’s property market, thanks to its growing reputation as a tech and financial hub. The city is part of the UK’s fastest-growing region outside London, its economy has grown by 32% over the past decade. Major employers like Channel 4 and Deloitte have established a significant presence in Leeds, attracting a young and skilled workforce.
The average property price in Leeds is £249,000, with rental yields averaging 5%. Key areas like Holbeck, part of the South Bank regeneration project, are attracting investors due to their proximity to the city centre and ongoing redevelopment. Chapel Allerton, known for its vibrant community and amenities, is also a popular choice among renters and families.
Leeds’ population has grown by 8% between 2011 and 2021, further driving demand for rental properties. The city’s connectivity is another advantage, with major rail and road links supporting its appeal to both businesses and residents.
The South West of England continues to attract investors looking to capitalise on the holiday let market. Cornwall and Devon have seen a surge in demand for short-term rentals, driven by the popularity of staycations and the region’s natural beauty. Occupancy rates for holiday lets in Cornwall averaged 62% in 2024, with peak season rates reaching 90%.
The average property price in Cornwall is £303,000, while Devon’s average is slightly higher at £350,000. High demand and large occupancy rates mean rental yields in these areas have scope to go well over the UK average, particularly in hotspots like St Ives, Falmouth, and Torquay. Investors should, however, be mindful of increasing regulations on holiday lets, such as licensing requirements and potential caps on short-term rental days, introduced by local councils to address housing shortages.
The UK property market in 2025 offers diverse opportunities across its regions. From the dynamic cities of Manchester and Birmingham that allow you to access a growing working population to the scenic charm of Cornwall and Devon that provide the opportunity to tap into the holiday let market, each area presents unique advantages and challenges. Investors might focus on locations with strong rental demand, infrastructure growth, and economic resilience to maximise returns.
Ensuring that their goals strongly influence their investment strategy can assist in a successful investment. This can be done by conducting thorough research and leveraging local expertise, allowing property investors to navigate the regional nuances of the UK market and make informed decisions that align with their financial goals.
This is for your information only and should not be relied upon or construed as legal, tax, investment, financial or other advice. Whilst GetGround has tried to make sure this information is accurate and up to date, things can change, so GetGround cannot guarantee or be responsible for the accuracy, relevance and/or the completeness of the information provided. Certain information has been obtained from third-party sources and GetGround is not responsible for the accuracy of such content. Any prediction, forecast or projection is provided solely as an example of possible growth and return and will not necessarily reflect the actual growth and return. GetGround cannot promise that the information provided will be fit or suitable for any purpose. Any reliance that you may place on the information provided is entirely at your own risk. GetGround always recommends you obtain independent advice before making any investment decisions.