Best Areas to Invest in Property​ 2025

A Look Back On 2024

As the market adjusted to changing base rates, new regulations, and house price inflation, there were areas of uncertainty, however, the market remained resilient. The housing market picked up pace in 2024, led by stronger income growth and lower mortgage rates, which have enhanced affordability for both buyers and investors. 

The market confidence in 2024 also picked up, leading to a competitive market driven by a rise in demand. Due to these factors, the property market was a more favourable market for investors. 

2025 is expected to see a huge excel in the market now it has found its footing in 2024. Providing huge opportunities for uk property investors.

Leeds

Leeds has established itself as one of the UK’s best areas to invest in property​. Consistently outperforming many cities in the Yorkshire & Humber region in recent years, and there’s little indication that this trend will change anytime soon.

According to a report by Savills, Leeds’ Gross Value Added (GVA) is going to grow by an impressive 16% over the next decade, outpacing national averages. This anticipated GVA growth is a key indicator of the city’s expanding economic activity. This will likely have a positive impact on the property market, driving up demand and property values.

Leeds has also been a leader in capital growth for several years, consistently ranking among the top five UK cities for property appreciation. One of the largest regeneration projects in Europe is currently underway in Leeds. Aiming to double the size of the city centre, creating over 35,000 new jobs. Making the city an unmissable destination for investors seeking long-term growth.

The rental market in Leeds is also showing strong growth. The average cost of renting privately has risen to £1,087 PCM, reflecting a 7.7% annual increase from 2023. For investors, Leeds presents a compelling opportunity. 

Sheffield 

Sheffield is one of the best cities in Yorkshire for sustainability and is also one of Europe’s greenest cities. The city has the highest tree-to-person ratio compared to any other city in Europe. It is home to over 2 million trees, 250 parks, and over 52 square miles of national parks. Which is sure to appeal to the rising number of environmentally aware individuals. 

Alongside that, its regeneration schemes will attract a wave of growth to the city. Around £480 million has been invested into the city’s retail sector. Showing are developing the city with the rising demands and population. 

Sheffield is home to a population of 575,400, and this is set to grow to over 652,000 in the next 15 years. 67,000 of the population are students from the universities in the City. The University of Sheffield stands in the top 20 universities in the UK and in the top 50 worldwide. Every year, 42% of graduates stay in Sheffield to start their careers. Adding to the number of working professionals seeking rental accommodation, driving up rental demand in the area.

Sheffield is rapidly emerging as a prime hotspot for property investment, driven by the key factors above. These are likely to fuel demand and, therefore, drive up property prices.  As a result, the city is positioned to be one of the best areas for property investment in the UK 2025.

Leicester

Leicester presents a compelling opportunity for property investors, with properties selling for an average of £264,345 over the past 12 months, making it an accessible entry point for investors. Combined with an attractive average rental yield of 4.79% and solid average annual rental growth of 3.02%, Leicester offers investors the potential for both capital appreciation and reliable rental income.

In the past 12 months the rental market in Leicester has surged, with rental prices rising to £947 PCM, reflecting a significant 12.5% growth since 2023. Strong demand from the city’s expanding population, growing student base, and ongoing urban regeneration projects, will lead to a surge in rental rates.

Leicester is one of the fastest-growing cities in England, with its population having increased by 11.8% since 2011. The metro area’s population is projected to reach 571,000 by the end of 2024, further fuelling demand for housing. This consistent population growth positions Leicester as one of the top areas for investment in the UK.