Glasgow and Manchester the best cities for investors

Glasgow and Manchester are the best UK cities to invest in outside of London, according to Hometrack and Zoopla reports.

Glasgow offers strong rental yields of 6.8%, as well as an annual property value percentage increase of 14.1%, as well as strong transport links.

Manchester meanwhile has an annual property value increase of 15.6% as well as a rental yield of 5.1%.

The presence of two top Premier League football teams makes it an attractive place for investors looking to attract high-net worth individuals to rent their properties.

Gordon Dutfield, chief executive at Redmayne Smith, said: “Rental yield and annual property value percentage increase are key indicators of the potential for strong returns on investment, while transport links are crucial in attracting tenants and maintaining demand.

“We believe these three factors offer the most accurate picture of a region’s investment potential and are the most important things for investors to consider when selecting where to invest in the UK property market.

“By focusing on these key metrics, we can identify regions that offer the best opportunities for long-term growth and profitability, and help our clients achieve their investment goals.

““Our latest research clearly shows that Glasgow and Manchester are currently the best regions to invest in, with excellent rental yields, high annual property value increases, and great transport links.

“As we emerge from the pandemic, investors are increasingly looking for opportunities in major UK cities, where the potential for growth and returns is high.

“With Glasgow and Manchester both undergoing significant investment and regeneration, we believe they offer the greatest potential.

“Personally, Manchester is the place I believe to be one of the best places to invest and this is where I’m focusing my time at the moment – investing in key areas in the city where I’ll see the most return.”

Sheffield, Bristol, and Edinburgh completed the top five.

Sheffield’s average house prices are relatively affordable compared to other regions, making it attractive to investors looking to maximise their budget.

On the other hand, Bristol and Edinburgh topped the list for property prices, suggesting they would be more appropriate for investors looking to benefit from regions with less risk of market downturn and higher rental prices.

Birmingham and Nottingham scored well in terms of rental yield, and offer relatively affordable average house prices with strong potential for future growth.

While their transport links scored slightly lower than most of the top-ranking cities, both Birmingham and Nottingham are undergoing significant regeneration projects and attracting major businesses, which is expected to boost demand for rental properties in the coming years.

For investors looking for long-term growth potential, these cities offer a compelling investment opportunity.

Liverpool, Cardiff, and Leeds rounded out the list.

Liverpool scored particularly well in rental yield and transport links, the Welsh capital scored moderately in all three metrics, whilst Leeds scored high in rental yield.