Top cities in England for property investment

‘Top cities’ for property investment can be measured by many things – rental income, capital growth, schools, crime rates & much more. For the purposes of this article, the top cities are measured by the capital growth % cities have seen in the last year.

According to Zoopla’s most recent house price index report, Liverpool is leading the way followed by Manchester, Sheffield, Nottingham, Leeds & Leicester. All of which are above the 6% growth seen nationally.

Growth July 2020 to July 2021
City Price increase
Liverpool 9.4%
Manchester 7.7%
Sheffield 7.4%
Nottingham 7%
Leeds 6.3%
Leicester 6%

What’s more impressive is that all these cities also had property prices well below the UK average. In regions where house prices are below the national average, there is still plenty of room for further growth.

ERE property have multiple investment opportunities in two of the top performing cities, Liverpool & Manchester.

‘House prices in Liverpool have gone up 9.4% over the past year, the largest increase in all UK cities, adding £11,731 to the cost of the average home.

Despite the steep increase, average property prices in Liverpool are still nearly £100,000 below the UK average of £234,000, at just £136,721.

Click here to see our Liverpool opportunity.

Manchester where average properties cost £193,900 has seen increases of 7.7%.

Click here to see our Manchester, Salford opportunity.
Click here to see our Manchester commuter opportunity.

Other strong performers with gains of 7% or more are Sheffield, with average house prices of £152,600, and Nottingham at £175,000.

At the other end of the scale, growth has been slowest in London, where a typical home costs £492,300, with property values edging ahead by just 2.5%.’ – Zoopla House Price Index, July 2021

House prices have continued to rise, especially over the last year, the most notable reasons being the pandemic-induced search for space & the stamp duty holiday incentive.

According to Zoopla’s latest research buyer numbers increased by 20.5% but the supply of properties for sale fell by 26.4%, creating that all too well-known mismatch between supply and demand in the property market.

Going forward, house price growth across the UK is expected to slow to between 4% and 5%. However this is still a good growth % in property prices, & purchasing now is still likely to give you good capital gains in your property purchase compared to investing later down the line.

Areas such as the top cities mentioned, where property remains most affordable, are likely to continue to outperform the rest of the market.