Colliers has evaluated major towns and cities across the UK using across five strategic ‘pillars’ and named the best locations for real estate investment.
The agency’s latest Top UK Residential Investment Cities Report has analysed 24 indicators across five categories to calculate which are “defining the future of residential investment”, particularly in the context of Build to Rent and UK rental yields.
The categories are: Economic (GDP, unemployment, earnings, population, income equality); R&D (student enrolment, university ranking, qualification of population, business start-ups); Liveability/cultural (life satisfaction, broadband, access to leisure facilities, number of attractions, access to schools); Property (house price growth, rental yield, affordability, income-to-rent ratio, share of renters); and Environmental (EPC rating, CO₂ emissions, woodland coverage, recycling rate, EV uptake and charging points).
Different locations succeed against different pillars but the most successful against a series of categories are London, Bristol, Milton Keynes, Manchester, Glasgow, Edinburgh, Cardiff, Cambridge, Leeds, Oxford, Liverpool, Reading and Belfast.
London moves from fourth place to the overall top spot for the first time since the first iteration of the report in 2021. The city is top in four of the 24 indicators, and in the top five in eleven indicators, including the number of attractions and leisure business density. Being home to some of the country’s best universities, with a student population of over 400,000, the capital tops the R&D pillar ahead of Cambridge and Oxford but scores relatively poorly across the property pillar due to its high house prices and rents.
Manchester is in second place and described by Colliers as “the regional city of choice for both domestic and international investment” thanks to a buoyant economy, large student population, enterprise and home affordability. Its cultural scene and proximity to The Peak District and Lake District are also a draw for home seekers. Relatively low earnings, income inequality, and high CO₂ emissions are challenges it faces.
Glasgow, rated second in the last edition of the report, is now in third place.
Oliver Kolodseike, director of research and economics, comments: “Our aim is to equip investors with the insight needed to navigate an increasingly complex market, identify cities aligned with long-term policy priorities, and make well-informed capital allocation decisions. We invite you to explore the findings and see how the UK’s most dynamic urban centres continue to evolve – offering both opportunities and considerations for residential investment strategies in the years ahead.”
And Andrew White, head of residential, adds: “After a period of stagnation amongst the top five, in our latest analysis we’ve seen some movement, and for the first time London has reached the top spot in our ranking. In recent years we’ve seen consistent regeneration across the capital, often spearheaded by local authorities, and the city has welcomed a wider variety of tenures to match the needs of its population. In the long term we could see the overall homeownership profile of the city shift, particularly if there’s no forthcoming government intervention to support homeownership.”
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