2 days ago
5 minutes

2026 Investment Hotspots

As we welcome in the New Year, the discussion of the top locations in the UK to invest in property is once again at the forefront of many investors' minds. Whether you're looking to take your first step in your property investment journey or you want to expand your current portfolio with new additions, we've looked at some of the cities that you should be considering.

Jason jeandron n j S5vsad9g unsplash

Image source: unsplash.com

Manchester

Manchester has been the number 1 property investment hotspot for some time now, and that isn't about to change in 2026. Whether your focus is strong yields, high demand, or capital appreciation, Manchester has it all. The city is constantly growing, with regeneration projects making improvements to the city, alongside world-class universities that have attracted 124,000 new students from around the world to the city, in need of accommodation.

The city of Manchester has been recognised globally for years as one of the best places to invest, and with property prices having risen by an average of 48% in the last 5 years, it's clear to see why. Whether you're looking to invest privately in a single apartment or are looking for an institutional opportunity of a full block, Manchester has plenty of choices to suit every investor.

Newcastle

The North East has been considered a hidden gem, and for good reason. Newcastle is home to world-class colleges and universities, hospitals, and health trusts, deemed one of the 4 best cities to live and work in the UK. It is also in the top ten rental yields in the UK, with prices forecasted to grow by 25.2% by 2028; an opportunity for investors that should not be missed.

With an incredibly strong economy worth £9.9 billion, a young population with 60,000 students attending the universities, and a 72.6% graduation retention rate resulting in those graduates in need of accommodation, the growth prospects in Newcastle are very impressive and not to be missed.

Sheffield

The home to the second-fastest growing economy across the UK, Sheffield offers some of the highest yields across the country, with some investors seeing highs of 7.5% compared to the UK average of 5.6%. The lower property prices in the city result in a higher rental yield, as well as being driven up by the consistently growing rental demand.

Sheffield is also the fourth-largest city in the UK, with 746,000 residents, pushing up the rental demand. Pair this with property prices increasing by an average of 48% over the past 5 years, and the migration of various Blue Chip employers bringing more jobs to the city, further contributing to the population growth.

These are some of our preferred locations for investments, but there are plenty of other opportunities that are worth exploring too. If you're looking for support on investment opportunities, we're here to help. Reach out to our team today to discuss your goals.

Share this article
General Enquiries

60 Oxford Street, Manchester, M1 5EE
+44 (0) 161 791 4600
invest@paragonproperty.co.uk

Sales Enquiries

+44 (0) 161 791 4600
invest@paragonproperty.co.uk

© Paragon Properties 2026