Best Places to Invest in Property in the UK in 2026

Choosing the right location is one of the most important parts of any property purchase — and it’s especially crucial when buying an investment property. Your ideal location will depend on your budget, strategy and long‑term goals, so carrying out thorough research is essential.

In this guide, we break down what makes a great investment location, what to look for as a property investor, developer, or homebuyer, and how property auctions can help you secure the right opportunity quickly and securely.

What Makes a Location Good for Property Investment?

There are several factors to assess when determining whether an area is suitable for property investment. Below are the key indicators to look out for.

 
Housing Market Performance

A strong housing market is often the first sign of a good investment location. Positive signals include:

• Fast-moving property sales
• Steady or rising house price growth
• High buyer, investor and tenant demand
• Visible new‑build developments supporting population growth

These elements suggest a resilient market and potential for both rental demand and capital appreciation.

 
Rental Demand

If you’re buying a rental property, the health of the local lettings market is essential. Consider:

• Are rental properties letting quickly?
• Is the tenant population large or growing?
• Does the area attract your target tenant group (students, families, young professionals, etc.)?
• What are the average rental yields?

High rental demand and strong yields often indicate a promising location for investment.

 
Local Economic Growth

Economic strength directly influences property performance. Research:

• Employment levels and major employers
• Local industry sectors
• Short‑, medium‑ and long‑term economic forecasts
• Regeneration or investment plans

A strong economy supports demand for housing, stabilises rental income and contributes to long‑term capital growth.

 
Local Amenities

Amenities influence tenant demand and property value. Depending on your tenant demographic, look at proximity to:

• Universities
• Large employers
• Public transport
• Schools
• Green spaces
• Leisure and retail facilities

These factors determine how attractive a property will be to renters and buyers.

 Infrastructure and Regeneration Projects

Major transport enhancements, regeneration schemes and public investment can significantly impact house prices and rental demand.

Look for areas benefiting from:

• New rail or tram links
• Road improvements
• University expansions
• Business and technology parks
• Town centre regeneration

These projects often increase desirability, supporting both rental yields and long‑term growth.

 
What to Look for as a Property Investor

Property investors should prioritise locations with:

• A large and growing renter population
• High tenant demand
• Competitive purchase prices
• Strong rental yields
• Urban areas with universities and major employers — such as Manchester, Leeds and Liverpool — continue to offer some of the best yields in the UK (often 7–8% or more).

In contrast, property prices in London and the South East tend to be higher, leading to more modest yields of 4–5%.

For long‑term investors, capital growth is also key. Regeneration zones, emerging hotspots and infrastructure‑led growth areas often offer higher appreciation potential over time.

 
What to Look for as a Property Developer

Property developers should focus on:

• Fast-moving local markets
• Strong demand for the type of property they plan to build
• Upward-trending sold prices
• A solid pipeline of infrastructure investment

Recent years have seen regional cities like Manchester, Liverpool, Glasgow and Edinburgh leading the way in fast‑moving markets.

Because securing sites quickly is essential for developers, the speed and certainty of buying at auction can provide a competitive advantage.

 
What to Look for as a Homebuyer

For homebuyers, the best location will depend heavily on your lifestyle and priorities. Consider:

• Commuting distance
• School catchments
• Local amenities
• Proximity to family and friends
• Affordability

It’s also wise to look at areas with strong economic prospects and infrastructure improvements, as these locations typically hold their value better over time.

 
Find Investment Property at Auction with BTG Eddisons Property Auctions

Whether you’re a property investor, developer or homebuyer, auctions offer a quicker, more transparent and more secure way to buy property.

At BTG Eddisons Property Auctions, we offer a wide range of residential, commercial and land opportunities at our National Auction Events. 

Browse our current properties to find your next investment, or get in touch with our team support. We can help you understand the buying process, assess opportunities and guide you every step of the way.