
The UK property market is witnessing a significant shift, with investors moving away from traditional hotspots like London and the South East.
Rising property values in London and the South East have made it harder for landlords to achieve high returns. In contrast, cities like Manchester, Liverpool, and Newcastle offer average yields above 8%, making them attractive to buy-to-let investors. The rise of remote working has further boosted demand in these regional markets, with growth seen in both city centres and suburban areas.
This shift aligns with changing lifestyles and work patterns. The increase in self-employment, particularly among older age groups, and the evolution of hybrid working have reshaped tenant preferences. Regional markets are now thriving as people seek more space and affordability.
Government policies and economic changes have also played a role. Rising interest rates, new regulations, and taxation changes have pressured landlords, but regional investments remain promising. The Labour government’s commitment to addressing housing shortages, including a £5bn investment, highlights the importance of small and medium-sized builders in meeting demand.
Projections suggest property values could rise by 20% over the next five years, with rental yields increasing by 17%. These trends reflect our list of UK property hotspots for 2025, highlighting a future where regional markets lead the way for property investment.
Explore our list of top UK hotspots to invest in BTL in 2025 to discover the best places to buy property.