The best UK cities for buy-to-let outside London in 2026 are attracting growing interest from investors priced out of the capital or seeking stronger yields.
London remains a global investment hub with long-term capital preservation benefits, but affordability challenges and compressed yields are pushing many investors to diversify geographically.
Rising property prices and tighter lending conditions have shifted focus towards regional cities where entry costs are lower, rental demand is strong and regeneration is actively driving growth. For investors taking a strategic view, buy-to-let opportunities outside London offer a compelling balance of yield, scalability and long-term upside.
Why Look Beyond London for Buy-to-Let in 2026?
London continues to perform as a resilient and internationally recognised property market. However, yields are typically lower due to higher capital values. For investors focused on income generation or portfolio diversification, the best UK cities for buy-to-let outside London in 2026 offer practical alternatives without sacrificing demand fundamentals.
Regional markets benefit from government-backed regeneration, expanding employment hubs and rising populations. These factors support rental demand while keeping purchase prices more accessible. Investors can still retain London exposure while deploying capital more efficiently across multiple regional locations.
For a broader view on how these dynamics are shaping the market, this outlook on what to expect from the UK property market in 2026 provides useful context.
Manchester
Manchester remains one of the best UK cities for buy-to-let outside London in 2026 due to sustained rental demand and economic growth.
The city attracts professionals working in finance, technology, media and healthcare, alongside a substantial student population from multiple universities. This creates a deep and resilient rental market across both city centre and surrounding districts.
Ongoing regeneration projects and infrastructure investment continue to support employment growth and long-term capital appreciation. Manchester’s appeal is not speculative. It is underpinned by fundamentals that consistently translate into demand.
Our deeper breakdown of Manchester’s buy-to-let performance can be found here.
Liverpool
Liverpool stands out for investors prioritising yield and lower entry prices. Among the best UK cities for buy-to-let outside London in 2026, Liverpool offers one of the strongest income-driven cases.
Purchase prices remain accessible compared to other major cities, while rental demand is supported by a growing professional base, students and regeneration-led lifestyle districts. Over the long term, regeneration initiatives are expected to continue driving capital growth alongside yield.
Liverpool is particularly attractive to investors building diversified portfolios with manageable capital exposure per unit. A detailed city overview is available here.
Birmingham
Birmingham’s transformation over the past decade has positioned it firmly among the best UK cities for buy-to-let outside London in 2026.
Major regeneration programmes, large-scale commercial development and improved connectivity have reshaped the city’s investment profile. A large tenant population, driven by young professionals and students, ensures consistent rental demand.
Birmingham’s scale also matters. It is the UK’s second city, offering depth, liquidity and long-term resilience that appeals to both domestic and international investors.
More insight into Birmingham’s buy-to-let market can be found here.
Nottingham
Nottingham continues to attract buy-to-let investors seeking affordability combined with dependable demand.
The city benefits from a strong student population and a growing graduate workforce, supporting both shared and professional rental markets. Entry prices remain relatively modest, allowing investors to achieve solid yields while maintaining manageable risk.
As one of the best UK cities for buy-to-let outside London in 2026, Nottingham offers stability rather than speculation. That balance is particularly attractive in a cautious lending environment.
Explore Nottingham’s buy-to-let profile here.
Leicester
Leicester’s diverse economy and growing population underpin its appeal for buy-to-let investors.
The city benefits from strong local employment, education and healthcare sectors, supporting reliable rental demand. Property prices remain accessible, allowing investors to structure portfolios with lower capital exposure.
Leicester may not attract the same headlines as larger cities, but consistency is its strength. For investors prioritising steady performance, it remains one of the best UK cities for buy-to-let outside London in 2026.
More on Leicester’s investment fundamentals can be found here.
Other UK Cities to Watch
Beyond the core markets, several secondary locations warrant consideration in 2026.
Sheffield continues to benefit from regeneration and affordability, offering a balanced yield and growth profile for long-term investors.
Blackpool delivers high headline yields but comes with higher risk. Investors must be selective, focusing on micro-locations and tenant demand fundamentals rather than headline numbers alone.
Burton-upon-Trent is emerging as an affordable commuter and regional employment hub. While still developing, it offers early-stage opportunities for investors comfortable with longer-term horizons.
Broader city-level insights across the UK can be explored here.
How to Choose the Right City for Buy-to-Let
Selecting from the best UK cities for buy-to-let outside London in 2026 depends on clear priorities rather than trends.
Yield versus growth is the first consideration. Higher yields often come with higher management intensity or risk, while growth-led markets may deliver lower income but stronger capital appreciation.
Budget and risk tolerance matter. Regional cities allow investors to spread capital across multiple properties rather than concentrating risk in a single asset.
Tenant type is critical. Students, professionals and families each behave differently and influence void periods, maintenance costs and long-term performance.
Before committing, investors should model returns accurately using tools such as a rental yield calculator.
Mortgage affordability and repayment assumptions should also be stress tested.
Market Data and Long-Term Outlook
Independent research supports the case for regional investment. Savills highlights the ongoing strength of regional UK cities in terms of rental demand and long-term growth prospects, particularly where regeneration and employment expansion align.
This reinforces why diversification beyond London is increasingly viewed as a strategic move rather than a compromise.
Conclusion
The best UK cities for buy-to-let outside London in 2026 offer investors the opportunity to achieve stronger yields, lower entry costs and diversified exposure. London remains a cornerstone market, but regional cities provide flexibility, scalability and resilience.
The right choice depends on individual goals, risk appetite and investment strategy. Investors who approach regional markets with clear criteria and robust data are best placed to benefit.
If you want support identifying suitable developments or structuring a buy-to-let strategy aligned with your objectives, explore current opportunities here.
