Glasgow Tops UK Property Investment Rankings with 7.1% Yield

A recent report on UK homeownership trends has identified the most promising cities for property investment, with Glasgow leading the way. According to analysis by the property sale company Housebuyers4u, Glasgow offers an after-tax yield of 7.1%, making it the best city for real estate investment outside London. The report, which covers data from November 2025, examines the 20 largest cities in the UK, focusing on various housing and economic factors.

In addition to Glasgow’s impressive yield, the report highlights several other cities that present attractive investment opportunities. Portsmouth ranks second, with an after-tax yield of 5.6% and the highest rental rates in the top ten, averaging GBP 1.34K per month. This growing market is complemented by a modest increase in property prices of 1.2% over the past year, bringing the average house price to GBP 249K.

Emerging Markets for Property Investors

Following closely is Manchester, which also reports an after-tax yield of 5.5%. The city’s property market mirrors that of Portsmouth, with an average house price of GBP 249K and a rental rate of GBP 1.32K. Despite a rental occupancy rate of 61%, Manchester has experienced significant population growth, which suggests strong potential for future investment.

In fourth place is Newcastle upon Tyne, offering a competitive after-tax yield of 5.4%. The city has seen a notable 6.7% increase in property prices over the past year, with average house prices at GBP 206K and monthly rents averaging GBP 1.13K. This combination of affordability and growth makes Newcastle an appealing option for property investors.

Finally, Bristol ranks fifth with an after-tax yield of 5.3%. Although it has the highest average rental price among the top five cities, at approximately GBP 1.79K, it also boasts a strong rental occupancy rate of 71%. This dynamic market is indicative of the larger rental demand in the region.

Investment Insights from the Report

The report analyzed several factors crucial for calculating potential profits, including the one-year price change for properties, average rent, and annual Band D tax. The metrics used to derive gross yield and after-tax yield provide a comprehensive view of how homeowners can expect to earn in each city. Notably, Glasgow’s lower average house price of GBP 190K combined with its high rental occupancy rate of 73% showcases its viability as a property investment hub.

Overall, the findings suggest that investors seeking profitable property markets should consider these cities, particularly Glasgow, which not only leads in yield but also offers a robust rental market. As UK homeownership trends continue to evolve, these cities may become increasingly appealing for investors looking to enter the real estate sector. The detailed report has been shared with Digital Journal, providing essential insights for potential investors.