Best Buy-to-Let Areas in the UK for High Returns (2025 Guide)
When it comes to rental yields and long-term property price growth, Manchester remains one of the best buy-to-let areas in the UK.
According to Aldermore’s Buy to Let City Tracker, the top-performing locations are ranked by returns, average rents, vacancy rates, and the proportion of residents renting.
Top 5 Buy-to-Let Cities in the UK (2025)
Glasgow (up six places)
Coventry (new entry)
Wigan (up 21 places)
Bristol (down four places)
Despite its global appeal, London ranks only 32nd due to high average property prices reducing rental yields – a fall of 27 places compared with last year.
Regional Hotspots – Are UK Property Investors Heading North?
Beyond individual cities, investors are increasingly focused on regions.
Data from estate agency Hamptons reveals that in the year to April 2025, 39% of all buy-to-let purchases were in the Midlands or North England. This marks steady growth compared to 34% in 2022 and 24% in 2007.
In contrast, the South of England is becoming less attractive for landlords. Higher stamp duty and tax changes, combined with expensive property prices, have led to a decline: 43% of buy-to-let purchases were in the South in 2025, down from 53% in 2015.
The North East: The UK’s Buy-to-Let Capital
Hamptons reports that the North East is the strongest region for buy-to-let investments. Over the last decade, every UK region has seen a decline in landlord purchases except the North East.
In 2025 so far, 28% of all buy-to-let purchases have been made in the North East.
The region offers the UK’s highest average gross yield at 9.3%, compared to the national average of 7.1%.
Best UK Investment Properties for HMO Landlords
Houses in Multiple Occupation (HMOs) are larger rental properties let to three or more people from different households sharing common facilities.
For example, a house share with five young professionals would be classed as a “large HMO.”
To succeed with HMOs, landlords need to target markets with strong rental demand – typically university cities or urban centres with large numbers of young professionals.
It’s no surprise that the best HMO investment areas are those with both universities and strong job markets, making them highly attractive to students and graduates – and profitable for landlords.
Best Buy-to-Let Areas for Portfolio Landlords
While most UK landlords own a single property, many investors aim to build a portfolio over time.
A common strategy is to purchase one property, reinvest the rental returns, and grow steadily into a portfolio of rental properties. Some specialise in student housing investments, while others focus on specific cities or regions to maximise rental yields and long-term capital growth.
