Asking where the best place to invest in property in the UK is gets you a different answer from every agent, usually the city where they have stock to sell. So we did it the other way round: we took the latest official figures for six of the UK's biggest rental markets, ranked each city on four measures that matter to an investor, and averaged the result. We sell property in five of these six cities, so we have let the data, not our stock list, set the order.
The figures are the same ones behind our city guides, so you can check any of them yourself. Every yield on this page is gross unless it says otherwise.
How we compared the cities
Each city was ranked from first to sixth on four measures, and the four ranks were averaged:
- Gross yield. Average annual rent as a percentage of the average price, across all property types. This is the income measure.
- Price growth. The change in average price over the 12 months to July 2026.
- Rent growth. The change in average private rent over the 12 months to August 2026.
- Regional forecast. Savills' June 2026 forecast for total price growth in the city's region to 2030.
For context, the average UK house price was about £273,000 in August 2026, up just 0.9% on a year earlier, and the average UK private rent was £1,400 a month, up 3.8%. Rents are still rising faster than prices almost everywhere, which is why yields have edged up.
The figures side by side
| City | Average price | Price growth, 12 months | Average monthly rent | Rent growth, 12 months | City wide gross yield | Regional forecast to 2030 |
|---|---|---|---|---|---|---|
| Liverpool | £189,000 | +8.1% | £913 | +5.6% | 5.8% | +25.0% |
| Manchester | £252,000 | +1.2% | £1,373 | +4.2% | 6.5% | +25.0% |
| Leeds | £248,000 | +3.8% | £1,145 | +4.2% | 5.5% | +25.0% |
| Sheffield | £220,000 | +2.8% | £931 | +4.3% | 5.1% | +25.0% |
| Birmingham | £234,000 | +2.5% | £1,099 | +3.0% | 5.6% | +19.7% |
| London | £569,000 | −3.3% | £2,332 | +3.5% | 4.9% | +10.6% |
Sources: ONS and HM Land Registry UK House Price Index, July 2026 (provisional); ONS Price Index of Private Rents, August 2026; Savills revised five year mainstream forecast, June 2026 (regional figures). City wide gross yields are derived from ONS average price and average rent across all property types, so they are lower than the yields quoted on most city centre apartment schemes.
The best places to invest in UK property in 2026
1. Liverpool: the strongest all round numbers
Liverpool comes first on three of the four measures. It has the lowest average price of the six cities at £189,000, the fastest price growth at 8.1% and the fastest rent growth at 5.6%, and it sits in the North West, which Savills expects to grow 25% to 2030. Its city wide gross yield of 5.8% is second only to Manchester. The catch is that low prices also mean lower rents in cash terms, so check the actual rent achieved in the specific building, not the city average. See buy to let and off plan property for sale in Liverpool or read our Liverpool property investment guide.
2. Manchester: the best city for rental income
Manchester has the highest city wide gross yield on our list at 6.5%, average rents of £1,373 a month and rent growth of 4.2%. Prices rose just 1.2% in the year, which pulls its average rank down, but that also means entry prices have not run ahead of rents. It shares the strongest regional forecast and has the deepest regeneration pipeline of the six, led by the Old Trafford Mayoral Development Corporation and Victoria North. See property for sale in Manchester or our Manchester property investment guide.
3. Leeds: steady growth with a new anchor employer
Leeds ties with Manchester on the average rank. Prices rose 3.8%, rents 4.2%, and Yorkshire and the Humber shares the strongest regional forecast at 25% to 2030. Its gross yield of 5.5% is in the middle of the pack. The Bank of England's new office at Capitol House, announced in September 2026, adds a large professional employer to a city that already has a deep financial and legal services base. Read our Leeds property investment guide.
4. Sheffield: affordable, with rents rising quickly
Sheffield's average price of £220,000 and rent growth of 4.3% put it close behind Leeds, and it shares the Yorkshire forecast. Its gross yield of 5.1% is the second lowest here, so it suits investors who are buying for steady growth rather than maximum income. Read our Sheffield property investment guide.
5. Birmingham: a large market waiting for its catalysts
Birmingham's 5.6% gross yield is third on our list, but rent growth of 3.0% is the slowest of the six and the West Midlands forecast of 19.7% to 2030 trails the North. Its big projects, HS2 at Curzon Street, Smithfield and the Knowledge Quarter, are real but mostly a decade away. It remains a deep, liquid market with plenty of completed stock that earns rent from day one. See property for sale in Birmingham or our Birmingham property investment guide.
6. London: deep demand, weakest numbers
London has the highest rents in the UK at £2,332 a month on average, but prices fell 3.3% in the year, its 4.9% gross yield is the lowest here, and Savills forecasts just 10.6% growth to 2030, the weakest of any region. Investors who buy in London today are usually buying liquidity and long term tenant demand rather than yield or near term growth. See property for sale in London or our London property investment guide.
Highest rental yields in the UK: what the numbers do not tell you
The yields above are city wide averages across every type of home, from terraced houses to penthouses. Individual city centre apartment schemes often quote higher gross yields, and some quote much higher. Three checks keep those numbers honest:
- Gross or net? A gross yield ignores service charge, ground rent, letting fees, insurance and voids. Net yields are typically one to two percentage points lower. Our rental yield calculator works out both.
- Whose rent? Ask whether the rent is achieved on a signed tenancy or estimated by the developer, and compare it with similar flats nearby.
- Short let or long let? Serviced and short let yields are higher but less predictable, and depend on the building's permissions.
How to choose between them
Start with what you want the property to do. If you need monthly income, Manchester and Liverpool lead on yield. If you are buying for growth over five to ten years, the North West and Yorkshire have the strongest forecasts. If your budget is under £200,000, Liverpool and the smaller northern cities give you the most choice. Then decide between off plan, where you fix today's price and pay most of it at completion, and a completed or tenanted property that earns from day one. Our buy to let calculator shows the cash you need, including stamp duty, and what you keep each month after the mortgage.
Whichever city you choose, the building matters more than the postcode: the developer's record, the service charge, the rent achieved on comparable flats and the price per square foot against completed homes nearby.
Frequently asked questions
Where is the best place to invest in property in the UK in 2026?
On the latest ONS figures and Savills forecasts, Liverpool has the strongest combination of yield, price growth, rent growth and regional outlook of the six major cities we compared, followed by Manchester and Leeds. Manchester has the highest city wide gross yield at 6.5%.
Which UK city has the highest rental yield?
Of the six cities we compared, Manchester has the highest city wide gross yield at about 6.5%, followed by Liverpool at 5.8% and Birmingham at 5.6%. London is lowest at 4.9%. These are averages across all property types; individual apartment schemes can be higher or lower.
Where are UK house prices rising fastest?
Of the six cities, Liverpool had the fastest price growth at 8.1% in the year to July 2026, followed by Leeds at 3.8%. London prices fell 3.3% over the same period.
Is London still a good place to invest in property?
London has the deepest tenant demand and highest rents in the UK, but the lowest gross yields of the cities we compared and the weakest regional forecast to 2030. It suits investors who value liquidity and long term demand over income and near term growth.
Should I buy where the yield is highest?
Not on yield alone. Check whether the figure is gross or net, whether the rent is achieved or estimated, the service charge and the developer's record. A slightly lower yield in a building with strong demand and low costs can make more money than a high headline yield that does not hold up.
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Sources: ONS and HM Land Registry UK House Price Index, July 2026 (provisional) and August 2026 (UK average); ONS Price Index of Private Rents, August 2026; Savills revised five year mainstream forecast, June 2026. City wide gross yields are derived from ONS average price and rent across all property types. Verta acts as a marketing agent and is paid by the developer; values and income are not guaranteed. Take independent legal, tax and mortgage advice.
