Property for investment: Assessment of UK cities

Glasgow city centre. Image by Tim Sandle

Where are the best cities in the UK to consider property development? The answers are contained within a November 2025 report on the UK homeownership trends. This reveals that Glasgow is the best city to invest in real estate, with the highest after-tax yield of 7.1%.

This comes from analysis conducted by the property sale company Housebuyers4u looked at the 20 largest UK cities beyond London, comparing them across a wide range of housing and economic factors. The data, passed onto Digital Journal, highlights:

• Glasgow ranks 1st, with a 7.1% after-tax profit and the highest rental occupancy rate in the country.
• With the highest rent in the top 10 at GBP 1.34K, Portsmouth ranks 2nd.
• Bristol has the priciest real estate in the top 5, averaging GBP 354K.

The report focused on calculating the potential profits by comparing key factors: the 1-year price change for properties, average rent, and annual Band D tax. The gross yield and after-tax yield were calculated to show how much homeowners would earn in each city. The rental occupancy rate and 5-year population growth were added to reflect renting trends.

This reveals:

1. Glasgow

• Average house price in 2025: GBP 190K
• 1-year change in price: 4.97%
• Average rent: GBP 1.25K
• After-tax yield: 7.1%
• Rental occupancy rate: 73%
• 5-year population growth: 3.1%

Glasgow takes a lead among UK cities where homeownership pays off most, with 7.1% after-tax profits annually. The city has the most affordable real estate in the top 10, with house prices averaging GBP 190K, making it easier to make a property investment. The rent of GBP 1.25K is one of the lowest in the list, but it still brings the highest yield in the report. Together with a 73% occupancy rate, Glasgow shows an active renting market with high potential returns.

2. Portsmouth

Portsmouth ranks 2nd, with an after-tax yield of 5.6%. Rent here is higher than in Glasgow, with an average of GBP 1.34K, offering higher total earnings from renting. The real estate market here is more expensive too, with house prices rising 1.2% in the last year to an average of GBP 249K.

3. Manchester

Manchester follows closely, with 5.5% in after-tax yields. The city shows a similar real estate market as Portsmount, with 1.2% growth and GBP 249K average price. At the same time, the rent is a little lower here, at GBP 1.32K. The rental occupancy in Manchester currently sits at 61%, but the city had the second-highest population growth in the last 5 years (8%), showing a big potential for property investment and renting.

4. Newcastle upon Tyne

Newcastle upon Tyne takes fourth place, with a 5.4% after-tax yield and another affordable entry point for property investors. Real estate prices in the city grew 6.7% in the last year alone, showing high market potential, while staying more affordable in other cities. Currently, houses average GBP 206K, with rents for them amounting to GBP 1.13K a month.

5. Bristol

Bristol is fifth on the list of the UK cities where property investments pay off the most, with a 5.3% after-tax yield, very close to Manchester and Newcastle upon Tyne. The city has the second-highest rental occupancy rate, closely following Glasgow with 71% and proving itself a large rental market. The average rent in Bristol is also the highest in the top 5, around GBP 2.58K, bringing larger returns to investors.