Several UK cities have become prime investment hubs for those looking to purchase properties outside of London. This is due to several factors, such as regional and population growth in the North, increased investment in infrastructure, and increasing job opportunities.
While London still has strong demand, affordability has become a key motivator for property investment in 2026.
The cost of living in London remains significantly more expensive than in other areas of the UK, which makes purchasing property in areas such as the Midlands or the North a more financially safe option for investors.
This includes cities such as Birmingham, Manchester, Leeds and Liverpool, all of which have had growing investment over the last few years. This article will explore why these cities have been prime locations for investment.
Why Regional Cities Are Attracting Investors
Regional cities are centres that are located outside traditional capital cities. There are around 12 major regional cities in the UK which all drive economic growth outside of London. They often focus on improved connectivity to boost the local economy.
The lower costs of purchasing property in these regional cities mean lower entry prices for those looking to invest. With massive public investment in transport links and regeneration projects, the cost of property in these areas is generally increasing each year. This makes it an attractive proposition to invest in these regional cities earlier rather than later.
While property remains a key asset class for investors, many also look to diversify into global markets using tools such as a CFD trading platform to gain exposure on stocks and commodities.
For those looking to rent their property, another large reason for investing in these areas is their higher yields or the rental income a property generates as a percentage of its purchase price. Annual rental income in these areas often generates larger interest due to young professionals and students.
Birmingham, Manchester, Leeds and Liverpool are all cities which have multiple universities. This means that a large influx of students comes to these areas every year, many of whom find jobs in the city after graduating.
Top Four Cities to Invest in
So, which is the best UK city to invest in? That choice is up to you, but below we can break down the top four most popular UK cities to invest in, and why this is the case.
- Manchester – Manchester has a projected capital growth of up to 27.6% by 2029, and is driven by young professionals and students (over 100,000). There are also huge investment projects such as Victoria North, which further demonstrates how the city is on the rise.
- Liverpool – Average property prices in Liverpool are lower than the national average. The whole of the North West is also predicted to have a high capital growth by 2029.
- Birmingham – Birmingham has excellent transport links to London, making it a more affordable place to live, while also being able to commute to work. Average property prices are around £230,000–£268,471.
- Leeds – Leeds has a very strong student demand for renters. It also has more affordable property prices than Manchester and London.
Disclaimer:
The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication.
All information has been prepared by ActivTrades (“AT”). The information does not contain a record of AT’s prices, or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information.
Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of future performance. AT provides an execution-only service. Consequently, any person acting on the information provided does so at their own risk. Forecasts are not guarantees. Rates may change. Political risk is unpredictable. Central bank actions may vary. Platforms’ tools do not guarantee success.