Top 10 Places To Invest In Property In 2025 – High-End Property Investment

I want to discuss high-end property investment locations for buy-to-let real estate in this article. After examining a plethora of data, these are the top 10 locations where you can still make excellent money despite rising interest rates and the possibility of declining property values and rising rental rates. 

This is a fascinating post, so be sure to read through to the end to learn where the greatest spots are!

The Buy-to-Let Strategy: 25 Years of Experience

Buy-to-let has been a strategy that I’ve been doing for 25 years now. I couple that with other things, so I have some BTL properties that I then use as social housing for High-End Property Investments. I’ve got one that I use as serviced accommodation, and I apply different strategies like that to give me higher cash flow. But, if you just wanted to do a vanilla BTL property, it’s been quite hard to do that in the Southeast for a long time. The problem is that the rents are relatively low compared to the value of the house.

The North vs. South Comparison

Let me give you an example of that: I have a flat in Dorking that is worth £250,000, and the rent on that is £1,000 a month. So, not too great, but it’s okay. But then, I have a house in Doncaster where we’re just putting that on the market this week—it’s getting advertised this week. It’s valued at £100,000, and we get £700 rent. So, there’s a massive difference there. If I bought two Doncaster houses, then I’d have £200,000 worth of houses, and I’d get £1,400 worth of rent, which is a big, big difference.

Now, why do I have some properties down south and some up north? It’s a good question. In the South, capital growth is much quicker. My first property I bought in Dorking for £45,000—that’s now worth £250,000. In Doncaster, they won’t go up as quickly, so you’ll get a higher yield, but you won’t get so much capital appreciation. That’s why we want a bit of both.

Top Areas for Buy-to-Let Investments

Let’s have a look at what areas are good for yield and what’s going to make you a good return on a buy-to-let property.

1. Sunderland

Sunderland’s pretty good. So, with Sunderland, I’ve got to look at my figures here. The average yield is 8.5%, which is pretty good, isn’t it? The average rent is £598—so not too dissimilar to Doncaster. The price of a property, on average, is £88,000. Sunderland is one of the best places in the UK where you can get a buy-to-let property.

Geographical Overview and House Rental Market In Sunderland

Sunderland is a coastal city in England’s northeastern county of Tyne and Wear. It is located at the mouth of the River Wear, roughly ten miles southeast of Newcastle upon Tyne. Sunderland, a former industrial city with a strong heritage of shipbuilding and coal mining, has evolved into a more modern economy based on manufacturing, retail, and services.

The city benefits from its proximity to the North Sea, which offers a lovely coastal landscape, with beaches like Roker and Seaburn.

Additionally, Sunderland has good connectivity to the other major cities in the area through the A19 and A1(M) motorways as well as rail connections to Durham and Newcastle.

Property investors are interested in Sunderland’s house rental market because of its affordability and good rental yields. Sunderland is a great place to invest in buy-to-let properties because its average home price is lower than the national average.

• Average Property Prices: Compared to other southern UK locations, Sunderland has substantially lower average property prices, with an average of £88,000 as of recent data.
• Rental Yields: Sunderland’s high rental yield is one of the main benefits of investing there. In the UK real estate market, investors may anticipate an average rental yield of about 8.5%, which is regarded as strong.
• Average Rent: In Sunderland, the average monthly rent is roughly £598. But this can change based on the kind of property and where it is in the city. Suburban properties may have slightly lower rents than more attractive regions, especially those close to the ocean or city centre.

The Reasons Rent in Sunderland Is Appealing:

• Affordability: Sunderland has lower living costs than other UK cities, which draws in renters from a variety of backgrounds and occupations, including families, professionals, and students (thanks to the University of Sunderland).
• Demand for Rental Properties: Sunderland’s rising employment and student population contributes to the city’s steady demand for rental properties.
• Potential for Capital Growth: Sunderland has a history of consistent property value gain, especially in areas undergoing development and renovation. However, it may not see the same rapid capital growth as some other places.

2. Dundee (Scotland)

In Dundee, the best yield you can get is 8.07%. The rents are a lot higher up there—£783 on average, and an average property is £116,000. Dundee is another area to consider. I wouldn’t invest in Scotland and Dundee if you weren’t living there—they do have different rules, so you need to consider those. But if you’re an investor and you live near Scotland or in Scotland, it could be one to consider.

Dundee Scotland: Geographical Overview and House Rental Market

Geographical Overview

Dundee is a coastal city in eastern Scotland on the north bank of the Firth of Tay, near the North Sea. It is Scotland’s fourth-largest city, with a population of approximately 150,000. The city is ideally located about halfway between Edinburgh to the south and Aberdeen to the north, making it easily accessible by road and rail. Dundee is noted for its waterfront reconstruction, which has been fuelled by the redevelopment of the V&A Dundee Museum and other cultural institutions.

Dundee’s proximity to both urban centres and rural areas makes it an attractive location for professionals, students, and families alike. The city benefits from being part of the wider Tayside region, with stunning natural landscapes such as the Sidlaw Hills, beaches, and nearby Angus glens providing outdoor recreational opportunities.

House Rental Market in Dundee

Many factors, such as Dundee’s student population, economic growth, and cheaper property costs relative to major Scottish towns like Edinburgh and Glasgow, impact the city’s rental market. Renters looking for cheap housing and buy-to-let investors find it to be an appealing market as a result.

1. Average Rental Prices:
   • The average rent in Dundee for a two-bedroom property is approximately £700–£800 per month.
   • Larger properties, such as three- or four-bedroom houses, typically range from £900 to £1,200 per month, depending on location and property type.
   • One-bedroom apartments in central areas like the City Centre or West End may rent for around £500–£600 per month.
2. Popular Residential Areas:
   • West End: Home to many students and university staff from the University of Dundee, this area is known for Victorian properties and proximity to cafes, shops, and parks.
   • Broughty Ferry: A suburban area east of the city known for its coastal charm, large detached homes, and strong community vibe, popular with families.
   • City Centre: Offers modern flats, proximity to the waterfront and new developments, ideal for young professionals.
   • Lochee and Stobswell: More affordable areas that are experiencing regeneration and offer value for renters seeking lower costs while still being relatively close to the city centre.
3. Rental Yields:
   • Dundee offers one of the highest rental yields in Scotland, averaging around 8.07%. Investors can benefit from relatively affordable property prices while earning strong rental returns due to demand from students, young professionals, and families.
4. Market Drivers:
   • Student Population: Dundee is home to two major universities, the University of Dundee and Abertay University, which contribute significantly to rental demand.
   • Economic Development: Dundee has a growing tech and biomedical sector, and the waterfront regeneration project has made it a more attractive location for professionals.
   • Affordability: Dundee remains more affordable compared to larger cities like Edinburgh and Glasgow, making it appealing for tenants and investors alike.

3. Burnley

Burnley will give you a yield of 7.96%. These are all good. The average rent is £561, and the average property is £84,000, so all of these are affordable. When a lot of you read these articles, some of you probably think, “Where can you get a £100,000 house?” Well, Sunderland and Burnley have lots of them, so that’s a good option.

Geographical Location

Burnley is a town in Lancashire, north-west England. It is located roughly 21 miles north of Manchester and 20 miles east of Preston. Burnley is located near the Pennines, a region of hills in northern England, and is easily accessible from nearby cities and towns via major motorways such as the M65. It has a significant industrial past, particularly in cotton and textiles during the Industrial Revolution, and today it offers a mix of urban and semi-rural living.

Housing Market and Rent

Burnley’s housing market is noted for its affordability, making it a popular choice for property investors, particularly those seeking buy-to-let prospects. Burnley’s property prices are much lower than the national average, resulting in favourable rental yields.

Average House Price: As of recent data, the average property price in Burnley is around £84,000. This makes it one of the most affordable areas in the UK for homebuyers and investors.

• Average Rent: The average monthly rent in Burnley for a standard two or three-bedroom house is approximately £561. This provides a relatively high rental yield, making Burnley an appealing location for property investors who are seeking solid returns on investment.

Rental yields

Burnley’s average rental yield is roughly 7.96%, which is significantly greater than many other regions in the South of England, where property prices are much higher but rental returns are lower. Burnley is an excellent choice for landlords looking for high yields due to its low property prices and consistent rental demand.

Housing Types

Burnley’s housing stock contains a mix of terraced and semi-detached dwellings, as well as modern buildings. Terraced houses, generally from the Victorian and Edwardian eras, are especially widespread and make up a large portion of the rental market.

Rental Demand

Rental demand in Burnley is driven by a mixture of residents, students, and professionals working in nearby cities like Manchester or Preston. Burnley’s relatively low cost of living and good transport links make it a desirable location for tenants looking for affordable housing with access to larger urban areas.

In summary, Burnley offers affordable property prices and competitive rental returns, making it an attractive option for buy-to-let investors. Its geographical location and accessible transport links further enhance its appeal, especially for those looking to invest in northern England.

4. Glasgow (Scotland)

Another Scottish area gives a good return—Glasgow. The returns in Glasgow are 7.9%, which is interesting. Rents are £930—it’s expensive to live in Glasgow, I had heard that—and the average property is £141,000. So look, this is close to the Dorking rent that I get, but the flats in Dorking are £250,000, and properties up there are £141,000—a big difference.

5. Middlesbrough

So, in Middlesbrough, you can get an average yield of 7.85%. The rents on average are £604, which is pretty good, and £92,000 for a property—really interesting stats there in Middlesbrough.

6. Aberdeen (Scotland)

Aberdeen’s average yield is 7.45%, which is good. Rent in Aberdeen is £673, and houses are, on average, £108,000—not bad at all.

7. Liverpool

Lots of investing is happening in Liverpool at the moment. I’ve seen tons of people investing up there. In Liverpool, you’ll get 7.43% as your yield. Think about that. I know interest rates in banks are pretty good at the moment, but as the Bank of England rate is going to drop for sure through this year, you want to make sure you’ve got something above inflation, which these yields are. The rent is £798, and the average cost of a house in Liverpool is £128,000.

Geographical Explanation of Liverpool and House Rental Market

On the eastern side of the Mersey Estuary, in the northwest of England, sits the dynamic city of Liverpool. With a long history as a significant port city, it is among the biggest metropolitan regions in the United Kingdom. The Beatles, the Royal Albert Dock, and its two well-known football teams, Liverpool FC and Everton FC, are just a few examples of Liverpool’s rich cultural legacy.

Geographical Features Affecting House Rentage

Liverpool is divided into several districts, each with distinct characteristics that impact property rental prices:

1. City Centre (L1, L2, L3):
   
   
   The heart of the city is home to major attractions, businesses, and universities. Due to high demand from students, professionals, and tourists, rent in the city centre tends to be higher. Average rents in the city centre range between £900 and £1,200 per month for a two-bedroom apartment, depending on proximity to landmarks like Liverpool One shopping centre and the waterfront.
   
2. South Liverpool (L15, L18, L19):
   
   
   
   Popular residential neighbourhoods include Allerton, Mossley Hill, and Aigburth. South Liverpool is more suburban, with a mix of Victorian homes and modern apartments. The rent here is slightly lower than in the city centre, ranging from £700 to £1,000 for a comparable-sized property. These places are popular among families and professionals because they are close to parks (such as Sefton Park) and good schools.
   
3. North Liverpool (L4, L5):
   
   
   Districts like Anfield and Everton, famous for their football stadiums, tend to offer more affordable housing. North Liverpool is undergoing regeneration, and rent is generally lower than in the city centre or South Liverpool. Rental prices in this area for a two-bedroom house or apartment typically fall between £500 and £700 per month.
   
4. The Wirral (CH41-CH63):
   
   
   Although technically across the River Mersey, the Wirral Peninsula is often considered part of Liverpool’s broader housing market due to its good transport links to the city via the Mersey Tunnels and ferries. Areas such as Birkenhead and Wallasey offer more suburban living with lower rents compared to central Liverpool. Prices range from £600 to £900 for a two-bedroom house.
   
5. Waterfront and Docklands (L1, L3, L5):
   
   Areas around the docks, including the iconic Royal Albert Dock and the newer developments around Liverpool Waters, are highly desirable for young professionals and high-net-worth individuals. Waterfront apartments, especially new builds, command higher rents, often ranging between £1,200 and £1,800 per month for premium properties.

Factors Influencing Rent Prices

• Demand from Students: The University of Liverpool, Liverpool John Moores University, and Liverpool Hope University are just a few universities in Liverpool. Due to the high prevalence of house-sharing and HMOs (Houses in Multiple Occupation), localities like Kensington (L6) and Wavertree (L15) see particularly strong demand for student housing. In places with a large student population, rents are competitive and often fall between £300 and £600 per room per month.
• Regeneration Projects: Ongoing regeneration projects, particularly around the waterfront and North Liverpool, are boosting the appeal of these areas. Improved infrastructure, new developments, and amenities are raising property values and rents over time.
• Transport Links: Liverpool is well-connected through motorways (M62, M57), national rail services, and local public transportation. Areas with excellent transport links to the city centre, such as Wavertree, West Derby, and Crosby, tend to attract renters who need easy access to work and study in central Liverpool.

Summary of Rental Prices in Liverpool

• City Centre (L1, L2, L3): £900–£1,200 per month (two-bedroom apartments).
• South Liverpool (L15, L18, L19): £700–£1,000 per month (two-bedroom houses/apartments).
• North Liverpool (L4, L5): £500–£700 per month (two-bedroom houses/apartments).
• Wirral (CH41-CH63): £600–£900 per month (two-bedroom houses/apartments).
• Waterfront and Docklands (L1, L3, L5): £1,200–£1,800 per month (luxury apartments).

Rent prices in Liverpool can vary significantly based on location, property type, and proximity to amenities, but overall, the city offers relatively affordable housing compared to other major UK cities like London or Manchester.

8. Blackburn

In Blackburn, you’re looking at 7.41% as the average yield. The rent in Blackburn is £656, and the average property in Blackburn is £116,000.

9. Hull

This is down the road from Doncaster where I invest, and I could invest in Hull or Doncaster. The reason I chose Doncaster is that I have connections there. I’ve got some clients from my marketing days that I worked with for years who own an estate agency there, so it just made it a little bit easier. But I wouldn’t dismiss Hull. In Hull, you can get a 7.3% return on your cash, and the average rent is £594—similar to Doncaster, I’d expect. The average price of a house is £97,000, which is great.

Hull Geographical Explanation & House Rentage

Hull, officially known as Kingston upon Hull, is a city located in the East Riding of Yorkshire, England. Situated on the northern bank of the Humber Estuary, about 25 miles inland from the North Sea, Hull has a significant maritime history and is a key port city. The River Hull, which runs through the city, meets the Humber Estuary, making it a historically strategic location for trade and industry.

Geographical Significance:

• Hull is located in northeast England, with good transit links to large cities like Leeds and Sheffield, as well as easy access to the shore.
• The Humber Estuary has long been an important shipping and commercial route, and it continues to support businesses such as fishing, logistics, and energy.
• Reconstruction: Hull has received significant investment in recent decades, particularly after being declared the UK City of Culture in 2017, which has fuelled urban reconstruction, economic growth, and infrastructure upgrades.

House Rentage in Hull:

• Affordable Property Market: Hull is noted for having comparatively low property prices when compared to other UK cities. Hull’s average house price is significantly lower than the national average, making it attractive to property speculators.
• Rental Yields: Hull offers an enticing rental market, with an average rental yield of around 7.3%. The relatively low cost of property, along with continuous rental demand, ensures that investors can make substantial returns.
• Average Rent: The average monthly rent for a property in Hull is roughly £594, depending on the kind and location. Prices may be lower in some locations but more in more desired neighbourhoods or new developments.
• Tenant Demand: Hull has a strong rental market driven by a diverse population, including university students, professionals, and families. The University of Hull adds to the demand for student accommodation, while the city’s industries, such as healthcare, energy, and technology, attract workers.

In summary, Hull’s strategic geographical location, combined with its affordability and high rental yields, make it an appealing option for property investors seeking consistent profits in 2024.

10. Grimsby

Finally, Grimsby. Sorry for sounding so dismal. The average yield there is 7.07%, which is satisfactory. Rents are £606, and the average dwelling costs £102,000.

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