With the UK property market proving its resilience time and again, buy-to-let remains a popular investment strategy for those seeking long-term returns, rental income, and capital growth. However, not all locations offer the same potential. As seasoned investors know, choosing the right city can make all the difference. With strong regional economies, affordable entry points, and rising rental demand, several UK cities are standing out for their long-term potential and reliable returns.

If you’re wondering where the best location in UK for buy-to-let might be, look no further than these top buy-to-let locations UK.

Market Overview: Why Now Is the Time to Invest

The UK property market in 2025 is a landscape of contrasts. While economic headwinds and regulatory changes present challenges, they are counterbalanced by compelling growth trends and investor-friendly fundamentals:

• House prices are expected to rise by 20% over the next five years as lower mortgage rates entice buyers back into the market.
• JLL forecasts UK rents to rise by 17% by 2029, with London rents expected to grow by 18%.
• Average rents on new lets have risen by 2.0% in London and 3.5% across the rest of the UK annually.
• Savills predicts a 23.4% increase in UK house prices by 2029, potentially taking the average price to £442,000.
• Recent Land Registry data shows the strongest annual house price growth last year in Northern Ireland (9%), the North West (8%), North East (7.9%), and Yorkshire & Humber (7.5%).

These trends highlight the robust potential of regional markets, particularly in North West England — a region that has become the beating heart of the UK’s property investment story. At Global Phoenix Group, we have analysed the latest market data and identified the UK’s best buy-to-let locations for 2025. Here are our top four buy-to-let best areas — each offering a compelling mix of yield, capital growth, and tenant demand.

1. Manchester – The Northern Powerhouse Continues to Deliver

Manchester remains the crown jewel of northern investment. Known for its robust economy, growing population, and extensive regeneration, the city consistently delivers for property investors.

Key Investment Factors:

• Average yield: 6.2%–7.5%, with some high-performing areas reaching 12%
• Annual price growth: 4.8% (outpacing the national average)
• Student population: Over 100,000 across four universities
• Major regeneration: Victoria North and MediaCityUK expansion
• Rental growth: 11.3% year-on-year as of December 2024

Areas such as Ancoats, New Islington, and Salford Quays are proving highly popular among tenants and investors alike. With the HS2 Manchester leg back on the agenda and continuous improvements in infrastructure and business investment, Manchester’s outlook remains bullish.

As a key part of the North West’s 8% annual price growth, Manchester is leading the region’s charge with high yields and unmatched rental demand. The city is not just a hub for students and young professionals, but also a magnet for international companies setting up regional headquarters. For those seeking the best place to buy a buy-to-let property, Manchester continues to stand tall among the best buy-to-let places in UK.

2. Liverpool – Affordability Meets Strong Yields

Liverpool has emerged as one of the best buy-to-let cities UK for rental yields. The city combines attractive property prices with large-scale regeneration, making it a smart choice for yield-focused investors.

Key Investment Factors:

• Average yield: 7%–8.5% (among the UK’s highest)
• Average property price: £195,000
• Major regeneration: £5.5 billion Liverpool Waters scheme
• Tenant drivers: Booming digital and creative sectors

Areas like the Baltic Triangle and Knowledge Quarter are now synonymous with strong returns and tenant demand, particularly from young professionals. With ongoing growth in the city’s tech and creative sectors, demand is expected to remain high.

Liverpool, another North West powerhouse, contributes to the region’s impressive 8% price growth. Its affordability, coupled with exceptional yields, positions it as a key alternative to pricier southern markets. If you’re looking for the highest rental yield in UK, Liverpool is one of the best buy to rent areas UK.

3. Leeds – Yorkshire’s Economic Powerhouse

Leeds has cemented its status as a leading regional investment hub, with the largest financial and legal sectors outside of London. The city’s booming professional job market supports a thriving demand for high-quality rental accommodation.

Key Investment Factors:

• Average yield: 5.8%–7%
• Strong demand: Professionals in finance, law and tech
• Regeneration: £350 million South Bank scheme, creating 8,000 new homes
• Transport upgrades: Leeds Station redevelopment and connectivity improvements

Neighbourhoods such as Headingley, Chapel Allerton, and Burley continue to perform well, with sustained demand from both students and young professionals. Leeds also benefits from being in one of the fastest growing regions — Yorkshire & the Humber, where house prices rose 7.5% year-on-year.

If you’re searching for the best place to buy investment property UK, Leeds should be high on your list.

4. Stoke-on-Trent – The Emerging Opportunity

Stoke-on-Trent is fast becoming one of the UK’s most exciting emerging property markets. Offering exceptional affordability, high yields, and a rising rental market, Stoke is an investor’s hidden gem.

Key Investment Factors:

• Average yield: 6.5%–8%
• Average property price: £158,000 (among the most affordable in England)
• Major regeneration: £500 million city centre investment
• Strong connectivity: 90 minutes by train to London

Projects like Smithfield are rejuvenating the city centre, while Staffordshire University drives student rental demand. As more start-ups and young professionals move to Stoke, its fundamentals only grow stronger. Investors looking for the best buy-to-let areas UK with untapped potential should seriously consider Stoke.

Investment Strategy for 2025

• Focus on connectivity – Properties near transport hubs often outperform in both yield and capital growth.
• Consider emerging areas – Neighbourhoods undergoing regeneration often offer the best long-term returns.
• Understand tenant demographics – Each city has unique tenant profiles; know who you’re letting to.
• Take a long-term view – These cities offer both strong immediate yields and excellent capital appreciation over time.

Regional trends show stronger price growth in the North compared to the South, with 5% annual price increases forecast in the North West, North East, Yorkshire, and Scotland — making these regions ripe for investment.

The North West, in particular, is experiencing a remarkable upswing in both rental yields and capital growth, driven by strong tenant demand, university presence, and major infrastructure investments. For investors seeking consistent returns in a thriving regional market, cities like Manchester and Liverpool represent unmatched opportunities and rank among the best buy-to-let locations UK.

Partner with Global Phoenix Group

At Global Phoenix Group, we specialise in identifying prime investment opportunities in high-performing regional markets. Our clients benefit from:

• Exclusive off-market deals
• Access to early-phase developments
• High yield assisted living properties
• Tailored investment advice based on real-time market data

Whether you’re a seasoned investor or just beginning your property journey, our experienced team is here to guide you toward long-term success. When it comes to finding the best location in UK for buy-to-let, Global Phoenix Group has you covered.

Get in touch with our investment advisors today and find out how to make your next buy-to-let move in Manchester, Liverpool, Leeds or Stoke-on-Trent.