While Manchester continues to deliver reliable investment returns and remains a key market for developments, investors are also exploring other UK cities that offer competitive yields and strong growth potential. Rather than moving away from Manchester, these investors are broadening their strategies to include a mix of high-performing locations across the country.
Whether you're expanding your portfolio or seeking your first investment property, it’s worth comparing gross rental yields across the UK. This blog explores regional hotspots delivering standout returns in 2025 and how they can complement your Manchester investments.
Key Takeaways:
- Cities such as Liverpool, Nottingham, and Bradford are delivering gross rental yields above 6% in 2025
- Regional cities often offer lower entry prices, boosting yield potential and affordability for first-time investors
- Strong tenant demand is being driven by university populations, young professionals, and regeneration projects
- Investors are increasingly looking beyond London and Manchester for higher income-generating opportunities
Liverpool: A Consistent Yield Leader
According to PropertyData (July 2025), Liverpool’s L1 and L3 postcodes are delivering gross yields of 6.5% to 7.2%, fuelled by affordable entry prices and student-led demand. The city benefits from:
- Over 70,000 university students across three institutions
- Ongoing regeneration at Liverpool Waters and the Knowledge Quarter
- Average property prices of just £151,000, compared to the UK average of £283,000 (HM Land Registry)
The affordability of Liverpool’s housing stock makes it a popular choice for yield-focused investors seeking steady tenancies and strong returns.
Nottingham: Popular Among Young Renters
Nottingham continues to rank among the UK’s top buy-to-let cities. According to SevenCapital, yields in Nottingham reach up to 6.5%, especially in areas close to Nottingham Trent University and the city centre. Key drivers include:
- A student population of over 60,000
- Regeneration projects such as The Island Quarter and Broadmarsh redevelopment
- Transport upgrades connecting the city more efficiently to Birmingham and London
With rising rental prices and a growing professional workforce, Nottingham is a high-potential city for investors who want to diversify.
Bradford: Regeneration-Led Growth and Rising Yields
Bradford’s property market is undergoing a renaissance. The city has been named UK City of Culture for 2025, attracting more than £75 million in funding. According to PropertyData, central Bradford yields now average 6.2%, with student lets and new-build flats performing particularly well.
Key highlights:
- Low average property price of around £150,000
- Investment into transport, housing, and cultural venues
- Proximity to Leeds and strong commuter links
Investors looking for long-term capital growth alongside strong yield potential are beginning to see Bradford as a viable alternative to more saturated cities.
Birmingham: Solid Yields in a Growing Economy
Birmingham’s market isn’t just about capital growth, it offers consistent yields too. JLL’s Residential Forecast (2025) reports average yields in central Birmingham at 5.6%, with Digbeth, Edgbaston and the Jewellery Quarter performing well. Major appeal includes:
- The Big City Plan and Smithfield regeneration projects
- A tenant base of over 80,000 students and a booming tech sector
- Strong intercity connectivity via HS2 (under construction)
While yields may not top the charts, Birmingham’s combination of tenant stability and capital appreciation makes it ideal for balanced portfolios.
Sheffield: Affordability Meets Rental Demand
With average property prices under £190,000 and student demand from the University of Sheffield and Sheffield Hallam, yields in Sheffield currently average 6% (Source: TotallyMoney). Investors are attracted by:
- Regeneration in Kelham Island and Heart of the City II
- A steady student and young professional renter base
- High demand for modern rental units in central locations
Sheffield is considered a low-risk, high-reward option for investors seeking mid-size city performance.
Rothmore Property: Helping You Invest with Confidence
At Rothmore Property, we help investors secure high-performing opportunities in regional markets across the UK. With over 60+ developments in our portfolio and trusted relationships with leading developers, we offer:
- Access to off-market and exclusive listings
- A one-stop-shop from sourcing through to completion
- A tailored service for UK-based and international buyers
Whether you’re looking to boost yield, diversify your portfolio, or invest in regeneration areas, we’ll help align your strategy to your goals.
Discover more about Rothmore Property
Final Thoughts: Opportunity Beyond the Obvious
While Manchester remains a powerhouse, today’s investors are widening the lens. Regional cities like Liverpool, Nottingham, Bradford, and Sheffield offer strong yields, affordability, and regeneration-backed upside.
By acting early in these markets, investors can benefit from strong rental income now and capital growth in the years ahead. The UK’s property investment landscape is evolving, and the most successful portfolios will be those that look beyond the usual hotspots.
