The UK property market is shifting significantly in 2025. London was considered the major hotspot for investors for many years, and, while it’s still a desirable area, there are other cities and towns that can deliver high yields to property investors.
Why investors are looking beyond traditional hubs
Investors are no longer solely sticking to traditional hubs in the UK. London, especially, is becoming less of a highlight for investors due to the extremely high house prices and tighter yields. There are several things driving this change:
Remote working: Since the pandemic, remote work has stayed popular. People no longer have to live in the centre of big cities to keep their city jobs, which means there is more demand for the surrounding towns and quieter places that are not in the middle of it all.
Regional regeneration: There has been significant work to revitalise different geographical areas around the UK, creating areas that receive more interest from renters.
Government investment: The UK government has started investing more money into towns and cities away from the capital.
This mix of factors means that London is far from the only hub in the UK receiving interest. In particular, areas with affordability and strong rental demand are places investors need to know about.
The top emerging hotspots in 2025
So, where are the places with the most potential? Where should you look to invest in 2025? These cities are worth your attention.
Manchester
Manchester is a bustling city in the north-west of England that has received a lot of investment over the years. There is a high demand for rental properties in the area, with the average monthly rent rising significantly each year – in 2025, it now stands at an average of £1,310.
Leeds
Leeds is becoming a major hotspot for investors for several reasons – it’s experiencing economic growth, it has affordable rental prices compared to many other cities, and it has high rental yields. It already has a booming economy and is only expected to grow further, with a projection of 21% in the next ten years.
Glasgow
Glasgow is a culturally rich city in Scotland that shows diverse economic growth and a growing population, making it an excellent spot for investors. It is particularly popular due to its high yield gap, leading to a potentially higher income stream.
Liverpool
Another great city to consider investing in in 2025 is Liverpool. It has become an emerging hotspot in recent years thanks to investment in technology, healthcare, and education.
It has experienced economic growth in a variety of sectors, and there are currently several major regeneration projects that are only going to transform the city even further.
What to consider before investing
Of course, you should not simply pick one of these growing cities out of a hat and begin investing without a good plan. Before you invest, here is what to consider first.
Local demand: It is no good to invest in luxury apartments in an area that has more of a need for affordable housing. Always look at the local demand of an area and compare it to the type of properties you are investing in.
Areas with strong regeneration plans: Always look towards the future when investing in a specific place. Look specifically for properties that have strong infrastructure, employment, and regeneration plans. For example, Glasgow received a £1.13bn City Deal, which contributed significantly to economic growth in infrastructure and employment.
Build or invest?
As an investor you can either buy property (to let it out), flip property (buy property in need of renovation, do the works, then sell for a profit) or build property from the ground up to either let or sell:
A good buy to let strategy: A good buy to let strategy requires careful planning to minimise risks. It includes researching potential locations thoroughly, taking into consideration high-demand areas and growth potential.
Flipping property: If you are buying property that requires renovation you need to budget carefully and not overspend, so that you can be confident the proceeds of the sale will pay back all costs and leave you with a worthwhile profit. If you are new to this, seek knowledge from experienced professionals.
Building from scratch: Building from scratch is by far the most complex approach with experience being crtitical to success. You can start with an individual unit to gain useful insights into how to approach ground-up builds. Make sure you work with contractors and other professionals who have experience in this type of work. Over time you can increase the scale of the projects you take on.
If you need finance it always helps to have a specialist mortgage broker behind you – their advice will help you make the right strategic decisions, and you’ll gain access to established mortgage lenders. At Commercial Trust, you will find a team of experts who can help you on your finance-seeking journey.
Final thoughts
The UK clearly has some major hotspots that are worthy of any property investors’ attention, including Glasgow, Leeds, and Manchester (although your market research should bring up more than these!).
It’s important to perform thorough research before investing in property. Receiving professional mortgage advice is also critical, as it means you are more likely to be accepted for funding that suits your goals and circumstances.