Up-and-coming UK cities for development & investment 2025
What makes a top city for construction investment?
There are several ways a city’s investment potential can increase, heres some of the data behind it:
- A strong capital growth potential (e.g. 5‑year house price growth forecasts of over 15%)
- High rental returns and demand, either below 6% in established areas, or above 6% in up-and-coming areas
- Where it demonstrates a strong economy with more jobs, new developments and better transport
- A good quality of life and liveability ranking, which is attractive to workers, students and families
Top 3 cities to watch in 2025
These cities consistently deliver across growth, rental demand and quality of life, according to multiple 2025 rankings.
- Manchester
- Birmingham
- Edinburgh
An in-depth look at up-and-coming UK cities for development & investment 2025
Despite inflation and supply issues, UK construction is staying strong. The growth outside London is being driven by city upgrades, new infrastructure and rental demand. Here’s the latest on where development and investment are taking off:
Manchester
- It’s ranked the top UK city for property investment in 2025 (Capstone 72, 2025)
- There’s a predicted rental growth of 19.3% expected by 2028, with average yields of 6.4% (Joseph Mews, 2025)
- Graduates tend to build lives here, with a high graduate retention of 51% and strong job creation (North Property Group, 2024)
Birmingham
- Boosted by HS2, Smithfield, and East Side projects, this city sees 6.8% yearly rent growth, 5.5% yields and property prices are expected to rise to 19.9% by 2028. (Joseph Mews, 2025)
- There’s a huge appeal for both owner-occupiers and investors
Edinburgh
- This city is scaling economically and was ranked the top UK city for investment with an overall score of 6.27/10 (edinburghnews.scotsman.com, 2025)
- It’s currently globally ranked 57th for liveability by Oxford Economics, with average yields of 5.8%, with forecast rental growth of 22% by 2028.
Leeds
- This city has risen sharply in the 2025 rankings thanks to the South Bank regeneration
- It holds rental yields between 4.8% and 10% and is associated with strong affordability and a youthful population (Leeds.gov.uk, 2025)
- Now it often ranks higher than Nottingham in 2025 investor guides.
Liverpool
- This city is increasingly attractive due to its affordability and yields of 6.7% to 7.8% in key postcodes.
- It’s a hub of North West regional growth, with key student and young professional demographic.
Nottingham
- It’s still in the top 15 cities, but no longer in the top 5
- This city also ranks 158th globally by Oxford Economics Rental yields and has solid long-term growth with student demand
Brighton
- It remains popular for creatives and young professionals
- Although it’s not currently in the top city growth ranks it’s economy and property market remains stable
Wolverhampton
- This city is benefitting from recent and ongoing city centre regeneration and rail improvements
- It previously featured as an “unexpected hotspot,” and continues to accumulate modest growth
Derby / Bradford / Plymouth (Emerging hotspots)
- Strong short-term rental demand, yields as high as 11% in some areas
- They have large-scale regeneration projects and city status upgrades planned
Looking at several sources, it would appear that there has been a shift in the top construction and investment cities in the UK for 2025 based on those with regional opportunity and current regeneration works. While Manchester, Birmingham and Edinburgh remain frontrunners, cities like Leeds, Liverpool, Derby and Bradford are climbing fast. They all show higher yields, have young populations and major infrastructure projects planned. Brighton, Nottingham, and Wolverhampton remain consistant too. We’re seeing a spike in trackway hire opportunities in these areas too with plenty of planned works and popular outdoor events!
For more construction sector insights or to find out how we support trackway infrastructure across these regions, contact our team today.
