Best Places to Invest in UK Property In 2026

Expat Property Investments Ltd
Dec 26, 2025
5 min read

Choosing the best place to invest in UK property in 2026 isn’t as simple as choosing the “top city” or following the latest headline. The right location depends on your budget, strategy, risk appetite and whether you’re aiming for capital growth, cash flow or a balance of both. But with the latest data from the Office for National Statistics (ONS), regeneration reports from UK Gov, and market research from major housing portals like Zoopla and Rightmove, a clear picture is emerging for 2026.

The UK’s property market is entering a period of modest price growth, stronger rental demand and improving affordability as inflation cools. That means 2026 offers opportunities for non-UK residents to secure high-quality assets in regions showing both economic resilience and strong rental fundamentals.

Before exploring the top locations, many of our clients begin by modelling potential returns using our free ROI calculator to see how each city aligns with their goals, deposit size and target monthly income. You can also estimate your upfront costs using the Stamp Duty calculator, especially as non-UK residents must consider the 2% surcharge.

City street at dusk, lined with red-brick and glass buildings. Streetlights glow warmly, and "TURN RIGHT" is marked on the road. Calm mood.

Manchester: Consistently Strong Performance and High Rental Demand

Manchester continues to attract both domestic and international investment thanks to its expanding population, strong graduate retention and diversified economy. The ONS reports that the North West region has outpaced many others in wage growth and employment gains, which directly supports rental demand.

Large-scale regeneration, including ongoing development around Piccadilly, Victoria and the Oxford Road corridor, creates long-term confidence for investors. According to Zoopla, Manchester remains one of the most searched-for rental markets in the UK, highlighting the enormous tenant demand.

For non-UK residents, Manchester offers a balance of affordability, stable yields and meaningful capital growth potential. It’s particularly suitable for investors wanting strong rental performance without London-level entry prices.

Foggy skyline with tall buildings obscured by mist. A bridge and street below, featuring a bright ad for a Jerk Chicken sandwich. Moody ambiance.

Birmingham: Regeneration Momentum and Growing Tenant Demand

Birmingham has undergone one of the most significant transformations in the UK over the past decade, and the pace continues into 2026. The Government’s Infrastructure and Projects Authority highlights Birmingham as a key regional growth centre, supported by billions in redevelopment across transport, commercial districts and residential zones.

The city’s young demographic and growing professional workforce underpin rental demand, while ongoing enhancements around Digbeth, Eastside and the core business district position Birmingham as a standout investment opportunity.

For non-UK residents wanting long-term growth paired with sustainable rental markets, Birmingham remains a compelling choice for 2026.

Cityscape of Birmingham at dusk with dark clouds, cranes above modern buildings, and "Birmingham Coach Station" text. Calm, urban mood.

Leeds: A Fast-Growing Financial and Digital Hub

Leeds has rapidly become one of the UK’s most economically resilient cities. It hosts major financial institutions, digital firms and a large student population, all contributing to consistent rental demand. The ONS reports that Yorkshire and the Humber has shown strong employment growth, and Leeds is at the heart of this trend.

The city’s regeneration, including developments around South Bank and Holbeck, enhances the long-term fundamentals that investors look for: infrastructure, jobs, population growth and modern housing supply.

For investors seeking a balanced blend of yield and growth, Leeds offers attractive entry prices and strong future potential.

Modern waterfront with colorful boats, surrounded by tall buildings under a bright blue sky. Stone steps lead down to the water.

Stoke-on-Trent: Undervalued & Overlooked

Stoke-on-Trent is one of the UK’s most overlooked investment locations, offering fundamentals that are increasingly hard to find elsewhere.

Historically known for its ceramics industry, the city has quietly diversified into logistics, advanced manufacturing, healthcare and education, with major employers such as the NHS, JCB and bet365 supporting stable employment. According to ONS data, Staffordshire has maintained steady job numbers, while Stoke’s large student population and affordability continue to underpin consistent rental demand.

Ongoing regeneration projects, including city-centre redevelopment and transport improvements linked to the A500 and wider Midlands connectivity, strengthen long-term prospects. For investors prioritising high yields, low entry prices and resilient demand rather than headline-grabbing capital growth stories, Stoke-on-Trent represents a compelling value-for-money opportunity.

Urban street with parked cars and a green traffic light. Signs for Heaven & Hell nightclub and directions are visible. Cloudy sky.

Liverpool: High Yields and Strong Affordability

Liverpool remains one of the UK’s most attractive locations for high-yield investors. Zoopla frequently ranks Liverpool among the top cities for rental yields, driven by affordable purchase prices and strong student and professional demand.

The city is also benefiting from investment into the Knowledge Quarter, Liverpool One and waterfront redevelopment. For non-UK residents looking to build a cash-flow-focused portfolio, Liverpool provides a combination of accessible price points and consistent tenant demand.

Our clients often use the ROI calculator to compare the net yield difference between Manchester, Leeds and Liverpool, the results often reinforce Liverpool’s value proposition for steady cash flow.

Historic waterfront buildings in Liverpool, with clock towers set against a blue sky and calm waters. The scene exudes tranquility.

Sheffield: Undervalued and Undergoing Rapid Transformation

Sheffield is emerging as one of the most underrated markets for 2026. Major regeneration around the city centre, Castlegate and Kelham Island, supported by local government redevelopment plans, is helping Sheffield catch up to neighbouring powerhouses like Leeds and Manchester.

The BBC has reported on the city’s growing cultural, economic and housing development scene, reflecting rising demand from both students and professionals.

For non-UK residents with long-term horizons, Sheffield offers lower entry prices and strong growth potential as the city continues its upward trajectory.

City skyline at dusk with illuminated high-rise and modern buildings. Overcast sky, pink hues in clouds, and a distant church tower.

Newcastle: Steady Growth and Affordable Investment Options

Newcastle offers an appealing mix of affordability and strong rental demand, strengthened by significant employment across healthcare, manufacturing, digital sectors and academia. The city’s universities help maintain high occupancy rates in the student and young professional markets, and local regeneration projects continue to improve infrastructure and housing stock.

While not as widely discussed as Manchester or Birmingham, Newcastle provides an excellent opportunity for investors looking for stable performance, resilient rental demand and growing local employment.

River with a modern glass building and arch bridge reflecting in calm water. Clear blue sky and cityscape in the background. Peaceful mood.

Where Should You Invest in 2026?

The “best” location isn’t universal. Two investors with identical budgets may end up in completely different cities depending on strategy.

A non-UK resident aiming for high long-term growth might prioritise Manchester or Birmingham.

An investor focused on achieving the strongest net yields may lean toward Liverpool or Sheffield.

Someone seeking balance may find Leeds or Newcastle ideal.

This is why so many expats and international buyers begin with a personalised conversation. Understanding your budget, goals, risk comfort and preferred strategy helps narrow the map quickly.

You can book a free 30-minute strategy call if you’d like help determining your best location for 2026 based on real numbers, not generic lists.

Why 2026 Creates a Unique Opportunity for Non-UK Residents

With interest rates expected to decrease slightly in 2026 and rental demand projected to rise by around 4%, this year offers favourable conditions for overseas investors. Even modest growth predictions of around 1% in house prices mean investors can focus on acquiring quality properties in markets that continue to outperform the national average.

Non-UK residents who begin their search early, particularly in December before competition spikes in January, are often positioned to secure the best opportunities.

To stay updated with ready-to-go properties suited for overseas investors, you can join our free WhatsApp group where we share fully analysed deals every week.

So, Where is The Best Place to Invest in UK Property In 2026?

The best places to invest in the UK for 2026 share three qualities: strong rental demand, ongoing regeneration and a resilient local economy. Manchester, Birmingham, Leeds, Stoke, Liverpool, Sheffield and Newcastle all meet these criteria in different ways and suit different investor profiles.