Best UK Cities for Investments in 2022

Marko Leon
January 21, 2021
Best UK Cities for Investments in 2021

As you begin the new year with hopes and dreams and try to forget the challenging 2020, perhaps you find yourself interested in purchasing real estate in the UK. We’ve already discussed that when it comes to real estate, location is the top priority. Today we will be looking into the best cities in the UK for real estate investments.  

But first, let’s take a quick glance at how the COVID-19 pandemic shaped the real estate market in the UK. This may come as a surprise, but the property market actually boomed in 2020. According to RICS’ September 2020 survey, rent prices climbed in every region in the UK, hitting an 18-year high.  

Whether 2021 will see the same momentum in property prices is yet to be seen. However, it is certain that the property markets are always moving. So, if you’ve been contemplating it for some time, perhaps this is your year (pun unintended).   

So, without further ado, let’s move on to the list (which was compiled based on information provided by one of the UK’s most trusted developers, SevenCapital).  

Birmingham   

Average Price: £202,162  

Average Rental Yield: 5.4%  

Price Growth in Five Years: 14.2%  

Yet again, Birmingham finds itself at the top of the list. Over the past five years, the city has been going strong, with rents increasing by 30%. Not to mention that upcoming projects and events will only propel it even higher up. Some of the most notable projects and events include the 2022 Commonwealth Games and the Midlands Metro extension.  

Manchester  

Average Price: £242,311  

Average Rental Yield: 5.37%  

Price Growth in Five Years: 15.76%  

Manchester extends amazing opportunities for young professionals, as it is known for being a career hub. Between 2002 and 2015, the city saw employment growth of 84%, making it a top career destination in the country’s North West.  

Liverpool  

Average Price: £186,527  

Average Rental Yield: 5.30%  

Price Growth in Five Years: 8.45%  

This one is another hotspot in the North West. Although rent prices and yield aren’t as high in Liverpool, the city is expected to grow over the next few years. This estimation is largely due to the Liverpool Waters development plan, worth over £5.5 billion, which is expected to create roughly 17,000 jobs.   

Newcastle  

Average Price: £198,307  

Average Rental Yield: 6.5%  

Price Growth in Five Years: 6.2%  

Newcastle is one of the most affordable locations on this list. Nonetheless, it has a decent rent yield of 6.5%. This city has some of the best graduate retention rates in the UK and is slowly but surely becoming a hub for start-up businesses.  

Edinburgh  

Average Price: £333,691  

Average Rental Yield: 4.19%  

Price Growth in Five Years: 12.33%  

Needless to say, the Scottish capital has seen significant growth over the past ten years, making it one of the priciest places on this list. It is highly popular for education and career, with very high prospects for rent growth over the next five years.  

Housing prices in the United Kingdom - BBC

Final Thoughts  

This list isn’t exhaustive and covers only the most basic information about the listed cities. If you’re truly interested in investing in UK real estate, take a deeper dive into all the hidden gems and benefits that each of these beautiful cities offers.   

If you enjoyed this article, stay tuned for part two, where we will look at more UK cities that make for good investments in 2021. 


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