The Best Places to Invest in UK Buy-to-Let Property in 2025

sam15785
Nov 9
3 min read

With the UK rental market continuing to grow faster than supply, investors are once again turning their attention to the regions. As affordability in London remains stretched, regional cities are driving the country’s buy-to-let performance - offering higher yields, lower entry prices, and strong long-term growth potential.

For investors seeking stability, income, and capital appreciation, 2025 presents one of the best windows in recent years to enter the market strategically.

A Shift Towards Regional Growth

Over the past decade, property investment has steadily moved away from the South East and into key regional centres. Cities across the Midlands and the North have benefitted from billions in regeneration funding, new transport links, and a surge in employment within technology, finance, and creative industries.

As a result, these markets are now among the strongest in the UK for rental yields and projected price growth, with major cities such as Manchester, Liverpool, Leeds, and Birmingham consistently outperforming national averages.

Where the Numbers Stack Up

Data from Savills and JLL forecasts average property price growth of around 25–30% across major regional cities between 2025 and 2029, compared to just 15% in the South East.

At the same time, rental growth is projected to exceed 15% in key urban centres - a reflection of the growing demand for quality rental accommodation close to jobs, transport, and amenities.

This means that a well-located apartment purchased today can deliver both immediate rental returns and compounded capital growth over the medium term.

The Appeal of City Living

The UK’s largest regional cities share several traits that continue to drive investor interest:

High tenant demand from graduates, young professionals, and international workers.
Chronic supply shortages of high-quality rental homes, particularly in central postcodes.
Strong regeneration programmes that modernise city centres and improve connectivity.
Affordable entry prices, often significantly below London equivalents.

Locations like Manchester’s city core, Leeds Dock, Birmingham’s Colmore District, and Liverpool’s Knowledge Quarter demonstrate how lifestyle-focused regeneration can translate into long-term property performance.

Why Timing Matters

The combination of stable interest rates, growing urban populations, and rising construction costs makes now a particularly strong moment to invest.

Those purchasing during the development phase - while prices remain below projected completion values - are positioning themselves to benefit from built-in equity growth as new schemes complete and mature.

For many investors, this is the advantage of forward-thinking strategies such as off-plan investing: entering the market early and letting time and growth work in your favour.

The Outlook for 2025 and Beyond

The fundamentals underpinning the UK’s regional markets remain robust. Employment growth, regeneration, and inward migration continue to strengthen rental demand, while supply struggles to keep up.

For long-term investors focused on sustainable returns, the key is to identify cities with clear economic momentum and carefully selected neighbourhoods with enduring tenant appeal.

The data shows that in 2025, regional Britain - particularly the North West and Midlands - remains the engine of UK property performance.

Final Thoughts

The best buy-to-let investments in 2025 won’t necessarily be the cheapest or the flashiest - they’ll be the ones grounded in strong local economies, consistent demand, and well-timed entry points.

From the commercial strength of Manchester and Birmingham to the cultural and academic pull of Leeds and Liverpool, the UK’s regional cities offer investors a rare mix of affordability, resilience, and growth potential.

For those ready to take advantage of the next cycle, the opportunity is already here - it’s simply about knowing where to look, and acting before the rest of the market catches up.