When it comes to property investment locations, there is – quite literally – a world of choice out there.
It can be incredibly difficult to predict future trends and decide which town or city would be the best place for new developments, and this applies to investors looking for projects to back, as well as to those looking to complete their own redevelopments.
It used to be that London was the ‘go to’ option as, whilst properties there have always been some of the most expensive in the UK, the returns on investment are also among the most lucrative.
Yet, horizons have broadened and there are now plenty of potentially more attractive options when it comes to expanding a property portfolio.
The Commuter Belt
Properties in the so-called ‘Commuter Belt’ have the double advantage of being more reasonably priced than those within the capital itself, while also being accessible for the large number of people who choose to live outside London and commute in for work.
As of the last Greater London Authority census, that amounted to almost 800,000 individuals, meaning there are plenty of would-be renters or buyers looking to move into newly-developed sites within a reasonable distance of the city.
With regular trains running from Guildford to London Waterloo throughout the day and night, and an average journey time of 32 minutes according to South Western Railway, the Surrey spot is one of the most popular towns in the Commuter Belt.
In fact, Guildford’s railway station is one of the sites being improved as part of a multi-million-pound redevelopment currently underway – which will also include more than 400 additional homes, and new retail and commercial space.
Add in the numerous other improvements being made to sites within the town, and it’s clear why house prices are rising in Guildford: ONS figures show an increase of 3.6% from July 2024 to July 2025, compared to 1.2% for the South East as a whole.
This spells good news for developers hoping to see returns on investment when it comes to the value of their portfolio going forward – similarly positive are rental yields which, although variable, sit at above 6% in those areas of Guildford ideally placed for schools, workplaces and transport links, and nearer 7% for the areas around the University of Surrey which are naturally sought after by the student population.
Discerning investors can also consider many of the other key locations in Surrey and Hertfordshire, all of which are highly accessible and sought-after parts of the Commuter Belt; among the most notable are Bishop’s Stortford, Cobham, Weybridge.
The Midlands
The Midlands is home to the ‘second city’ of Birmingham, a vast number of large-scale employers, and a highly developed transport system including motorways and railways.
Whilst cities like Birmingham and Wolverhampton might spring to mind when considering property investment in the Midlands, Staffordshire is also a hugely viable option.
There are a vast number of development projects underway or in the pipeline in coming years which will further enhance the county, with major infrastructure plans focused on improving the roads, and numerous areas undergoing regeneration including the Eastgate Quarter and Stafford Gateway projects.
The levelling up of the county is reflected in the rate house prices are rising, with the average price increasing by 4.3% in Stafford and 6.7% in the south of the county over the past year. And it is little wonder when you consider just how convenient the area is for accessing almost anywhere else in the country: Birmingham is less than an hour away by car, the Welsh border and Chester can both be reached in under an hour and a half, and direct train journeys to London take around 75 minutes.
The North East
When it comes to rental yields, there are few places offering more attractive returns than the North East, with towns like Sunderland and Burnley rewarding investors with yields of between 7.65% and 8%, according to Zoopla.
Yorkshire and Lancashire towns such as Wakefield, Doncaster and Blackburn are also prime spots for savvy investors – with Halifax also proving highly popular. Some sources suggest that the town will see house prices rocket by 16% in the next five years, ideal for investors looking to make good returns on current redevelopment projects.
In addition, lower house prices than surrounding towns and cities make Halifax a viable option for would-be buyers and renters, who also have the option of being able to commute to nearby more expensive places like Leeds.
It is also proving attractive for renters and buyers seeking urban living combined with the option of exploring the beauty of the UK outside of working hours, with both the Peak District and the Yorkshire Dales being close enough for a daytrip.
When it comes to property investment, looking outside of the ‘big cities’ and considering up and coming locations can prove highly lucrative, enabling developers to snap up prime residential space (or unused commercial space that can be turned into homes) at low prices which have enormous potential once developed.
Investing while a town or city is undergoing extensive regeneration, rather than waiting until it has been transformed, is ideal for those looking for a great deal – and there are certainly plenty of options to choose from.
The UK market has many gems, which with a little digging, can be brought to the surface and utilised in order to grow an impressive property portfolio.
Reece Mennie is founder and chief executive of specialist property development firm HJ Collection.
