Best Place to Buy Rental Property in the UK: Expert Insights for Investors
Are you wondering where the best place to buy rental property in the UK is? You’re not alone. Despite recent challenges facing landlords, demand for high-quality rental housing remains strong. The number of households living in private rental accommodation increased by 63% between 2007 and 2017 – a clear indicator of long-term demand. With this structural rise, investors continue to see buy to let property as a resilient asset class in the UK.
At the same time, the weaker pound has fuelled significant investment from international buyers. Many overseas and UK-based investors alike still recognise the value of investing in UK property. The key question many ask is: where is the best place to start?
London and the South East: Prestige with Stability
For decades, London and the South East have been synonymous with property investment. Many landlords, especially foreign investors, have been attracted by the capital’s global reputation and track record of capital appreciation. London property, with its international recognition, ensures a consistent pool of rental demand and appeal to high-net-worth tenants.
However, in recent years, London price growth has slowed, and elevated entry costs make yields less competitive compared to other UK regions. While investing in the capital still provides security, it is increasingly viewed as a capital preservation play rather than a high-yielding growth strategy. For UHNWIs and expats seeking diversification, the allure of London remains strong – but many are now evaluating regional opportunities for better returns.
Regional Hotspots: High Yields and Growth Potential
Beyond London, regional cities are delivering some of the strongest investment performances. In the Midlands and the North, property prices are significantly lower, offering investors the opportunity to achieve meaningful rental yields and strong growth outlooks.
- Nottingham – Frequently highlighted as a property hotspot, Nottingham’s rental market continues to expand. The city benefits from a youthful demographic, strong local universities, and consistent tenant demand.
- Liverpool – Known for its dynamic regeneration projects and vibrant cultural appeal, Liverpool consistently delivers some of the highest buy to let yields in the UK. Investors are able to secure multiple assets here for the same cost as one in prime Central London.
- Birmingham – The UK’s “second city” is benefitting from large-scale infrastructure investment, including HS2 and a booming professional services sector. These factors contribute to growing rental demand and long-term capital growth prospects.
Investors targeting these hubs can create diversified portfolios with lower exposure to entry costs while capturing ongoing population and economic expansion. Over the coming decade, regional buy to let property is forecast to deliver competitive returns, making it an attractive alternative for domestic and overseas buyers alike.
Aligning Strategy with Objectives
The definition of the best place to buy rental property in the UK depends heavily on your personal investment objectives. Broadly, these fall into three categories:
- Yield-driven investment: Targeting high performing cities such as Liverpool where rental returns outperform London.
- Capital growth-focused: Concentrating on areas like Birmingham and Nottingham, positioned for long-term appreciation.
- Stability and prestige: Investing in London or the South East to maintain wealth in globally recognised property markets.
No matter the objective, the structuring of finance is a critical element of success. An appropriately tailored buy to let mortgage can significantly enhance returns and liquidity. Whether this involves exploring private bank facilities, leveraging high-net-worth mortgage structures, or reviewing bespoke portfolio solutions, engaging with an experienced broker ensures the best outcome.
Accessing Expert Guidance
At Articus Finance, we specialise in securing complex, high-value property finance solutions tailored for landlords, family offices, UHNWIs, and international investors. From expat buy to let mortgages to foreign national investment structures, our team provides discreet guidance at every stage of the journey.
For further insights, download our in-depth Buy to Let Finance Guide or contact us directly for bespoke advice.
Final Thoughts: Best Place to Buy Rental Property in the UK
The best place to buy rental property in the UK ultimately depends on your strategy. London continues to provide prestige and long-term security, while regional hotspots such as Nottingham, Liverpool, and Birmingham offer compelling growth and yield-driven opportunities. Structuring the right buy to let mortgage is crucial to maximising returns, and the expertise of Articus Finance ensures your investment journey is approached with clarity and precision. For discreet and tailored support, contact our team today.