Where to invest in UK buy-to-let in 2025

December 10, 2024

Arguably the most important consideration for any investor looking at UK buy-to-let property for sale is the location.

Other factors such as the quality and reputation of the developer need to be given strong consideration, but the right location can make or break the investment.

A good location will have:

A growing population with more potential tenants every year
A shortage of available housing so there is more demand
A growing economy that creates desirable jobs
Regeneration projects that make the location a more appealing place to live
Great culture, retail, food and beverage options to enhance lifestyle
Good local universities which attract students from around the world
Connectivity to other destinations for business and personal use

That’s just some of the factors to look for when searching for the best UK property investment locations.

You can find them in both established markets and the next big up-and-coming towns and cities across the UK – both of which are great opportunities at a time when house prices are rising at their fastest rate for two years.

Here are some our top tips for anyone who wants to buy UK property as an investment in 2025, whether you are investing as an individual, through a limited company or from overseas.

‍‍

The North West

The North West has become arguably the UK’s most popular buy-to-let investment destination over the last decade. Centred around Manchester and Liverpool, the region is growing fast and has nowhere near enough homes to meet demand.

That’s especially true when it comes to the luxury city centre apartments favoured by the thousands of young professionals moving for work and the exceptional lifestyle on offer.

The North West offers:

Population growth, for example, an additional 45,000 people are forecast to move to Liverpool by 2034
The region is set to become the UK’s growth and productivity leader according to Deloitte
Shortage of available homes, for example just over 850 new homes in construction in the busy Manchester city centre property market
Rents going up fast, for example, the ONS says rents in Manchester have gone up 11.4% year-on-year

Those facts and others have led Savills to forecast house price growth in the North West of 29.4% by the end of 2029. That’s the highest in the UK and more than 6% higher than the national average of 23.4%.

That makes buy-to-let property for sale in Manchester and Liverpool an important market for investors. Examples of premium opportunities available now include…

Manchester

Liverpool

Central Liverpool

Learn more about investing in Manchester and Liverpool today.

‍‍

Birmingham

The other major regional market that is always popular with investors is Birmingham. It’s at the heart of the West Midlands and offers ideal buy-to-let investment conditions.

As well as offering a growing population and plentiful job opportunities, Birmingham also enjoys great connectivity to the rest of the UK and the world.

The city is home to thousands of international students and it’s also the UK’s number one destination for high earners leaving London – both key groups of renters that landlords should look for.

Birmingham market highlights include:

6.7% – Growth of Birmingham’s population in the last Census period (ONS)
7,000 – Approximate number of new homes needed in Birmingham each year (Knight Frank)
8,848 – Number of new homes in construction in Birmingham up to 2028 (Deloitte)
9.4% - Year-on-year rental increase in Birmingham (ONS, Q4 2024)
26% - Increase in the number of high earners moving from London to Birmingham in the last full year (Experian)

Property for sale in Birmingham therefore offers an outstanding opportunity to make the most of a booming market. There are too many people for the local housing stock and competition for the best homes is high.

Examples of buy-to-let properties for sale in Birmingham that are available now are:

Learn more about what makes Birmingham property for sale such a good investment today.

‍‍

Where to invest in student property?

What if you want to invest in student property instead? As an asset, Purpose-Built Student Accommodation (PBSA) has many advantages which make it an attractive addition to any portfolio.

It’s also an alternative to residential property that can allow you to avoid the upcoming increases in Stamp Duty Land Tax (SDLT) that are about to make investing slightly more expensive.

While the increases in tax are far lower than the forecast property price growth predicted in the future, investing in student property is a way to avoid paying that tax entirely while still expanding your portfolio.

The student market is also growing in its own right, with some highlights to be aware of including:

£104bn – Size of the UK PBSA market by the end of 2028 (Knight Frank)
580,000 – Shortfall of more than half a million student beds (CBRE)
358,000 – The number of additional students by 2035 (UCAS)
8.2% - Average rental increase predicted for 2025 (Unite Students)
97.5% - Predicted average occupancy rate in 2025 (Unite Students)

As for location, the important things to look for are:

Large student body at multiple local universities
Universities investing in their facilities and expanding
Lack of available student beds
Good transport links between the building and the university
Amenities and services on-site for student residents

Good examples of places which have all of these characteristics are Stoke-on-Trent and Huddersfield.

Both locations have far more students than beds, and both have local universities that are growing fast. They have good connectivity within the local area and also to larger local destinations like Manchester, Leeds and Birmingham – making them more attractive to potential student renters.

That makes high quality developments in those areas which provide luxury accommodation and a good range of amenities sure to be a big hit with the local student body.

Stoke-on-Trent

Axiom

Huddersfield

Vision

Learn more about investing in student property today by reading our PBSA investment guide.

If you want to get ahead in 2025 and make the most of the UK’s growing investment market, get in touch with the team today and start your next investment journey.

Where to invest in UK buy-to-let in 2025

You may also be interested in...

Demand for investment property in the North West is far higher than in London and the rest of the UK

UK asking price record broken: Is this a good time to buy UK property?

Manchester is the leading UK tech destination