Average Property Prices and Yields Around the UK

With proposed changes in legislation, reduction in tax allowances and an ever-moving property market, property investors and landlords have to make sure that the numbers make sense when trying to grow their portfolio.

We take a look at the current average property prices in cities across the UK as provided by the ONS and Zoopla, with some of the best known cities, and we also take a look at towns and cities that many investment companies, and investors never seem to feature or consider in their lists of best places to invest. These 'sub-prime' cities are generally THE best places to invest, especially due to the fact they tend to be cheap to purchase property, little competition to purchase, strong rental demand as the majority of the local residents can't afford to buy, and rents tend not to be much lower than the more desirable areas. These factors will provide strong high yielding investments. The towns and cities that many consider sub-prime for investment are also generally where you will find larger concentration of businesses, because of the cheaper land and premises costs, meaning a larger potential pool of tenants. It is well known many larger companies in recent years have relocated from the South to the North specifically because of costs, this in turn tends to lead to regeneration of those areas.

Everyone has their own opinion on the best and worst places to invest, some investors like to pay over the odds in central Manchester or London, hoping for decent capital appreciation, and they are not bothered about low yields, whereas others like to get high yielding property in areas that might be considered 'cheap'.

Figures from the ONS & Zoopla

Annual % change in house price (Zoopla)

• Belfast 5.7%

• Liverpool 3.0%

• Manchester 2.9%

• Newcastle 2.5%

• Birmingham 2.4%

• Sheffield 2.3%

• Leeds 1.9%

• Glasgow 1.7%

• Nottingham 1.6%

• Edinburgh 1.5%

• Cardiff 1.5%

• Bristol 1.3%

• Oxford 1.0%

• Bournemouth 0.9%

• Leicester 0.8%

• Portsmouth 0.8%

• Southampton 0.6%

• Cambridge 0.6%

• Aberdeen -1.9%

Let us break down some cities by average property price, rent and average yield (Figs from the ONS), pitching the "good" with the "bad" without any bias!:

Birmingham, West Midlands.

• Average property price: £232,000

• Average monthly rent: £1,048

• Average rental yield: 5.4%

• Growth prediction (2024-2028): 19.9%

Derby Midlands.

• Average property price: £207,000

• Average monthly rent: £819

• Average rental yield: 4.7%

• Growth prediction (2024-2028): 22.8%

Leeds Yorkshire.

• Average property price: £242,000

• Average monthly rent: £1,096

• Average rental yield: 5.4%

• Growth prediction (2024-2028): 18.8%

Bradford West Yorkshire.

• Average property price: £178,000

• Average monthly rent: £704

• Average rental yield: 4.7%

• Growth prediction (2024-2028): 28.2%

Manchester, Northwest.

• Average property price: £246,000

• Average monthly rent: £1,307

• Average rental yield: 6.3%

• Growth prediction (2024-2028): 29.3%

Sheffield, South Yorkshire.

• Average property price: £221,000

• Average monthly rent: £877

• Average rental yield: 4.8%

• Growth prediction (2024-2028): 28.2%

Liverpool, Northwest.

• Average property price: £174,000

• Average monthly rent: £833

• Average rental yield: 5.7%

• Growth prediction (2024-2028): 28.8%

Newcastle, Tyne and Wear

• Average property price: £205,000

• Average monthly rent: £1036

• Average rental yield: 6.06%

• Growth prediction (2024-2028): 25.2%

Leicester, East Midlands.

• Average property price: £230,000

• Average monthly rent: £977

• Average rental yield: 5.09%

• Growth prediction (2024-2028): 22.8%

Nottingham, Midlands.

• Average property price: £194,000

• Average monthly rent: £954

• Average rental yield: 5.9%

• Growth prediction (2024-2028): 22.8%

Southend-on-Sea, South East

• Average property price: £320,000

• Average monthly rent: £1202

• Average rental yield: 4.5%

Blackpool, North West

• Average property price: £134,000

• Average monthly rent: £651

• Average rental yield: 5.8%

Wolverhampton, West Midlands

• Average property price: £206,000

• Average monthly rent: £829

• Average rental yield: 4.8%

Sunderland, North East

• Average property price: £141,000

• Average monthly rent: £666

• Average rental yield: 5.6%

Stoke-on-Trent, Midlands

• Average property price: £145,000

• Average monthly rent: £653

• Average rental yield: 5.4%

Gateshead, North East

• Average property price: £153,000

• Average monthly rent: £739

• Average rental yield: 5.7%

Swansea, South Wales

• Average property price: £200,000

• Average monthly rent: £779

• Average rental yield: 4.6%

Our recent article on the current top performing yields across the UK should provide an insight on where to consider investing.

Location is crucial when choosing the right location for optimal returns; factors such as economic growth, infrastructure, and rental demand are incredibly important when investing in property. However, the first thing you must ask yourself is why do you want to invest? Answer this question and it will help you on your journey to discover the best places to invest, as it all depends on your budget and future goals.