UK Regional Property Investment Surges Beyond London

UK regional property investment is on the rise as landlords seek high yield opportunities outside London’s traditionally dominant market.

London has long dominated the commercial property market. However, new data shows landlords now favour regional cities like Manchester, Birmingham, and Glasgow to boost rental yields.

Manchester Leads with Promising Returns

Recent findings from property lender Together indicate that Manchester is fast becoming a favourite for buy-to-let (BTL) landlords and commercial investors alike. In fact, one in three landlords operating in Manchester anticipate rental yields to rise by up to 10% over the coming year. A further 19% expect even more significant gains – between 10% and 25%.

Though a smaller number – 8% – predict yields could grow by as much as 50%, the general outlook remains extremely positive.

The city’s retail sector also holds considerable promise. Over three-quarters (77%) of surveyed landlords and developers view Manchester’s retail spaces as a strong long-term investment. Meanwhile, around 40% have identified semi-commercial properties, such as flats situated above shops, as high-potential assets.

Birmingham: A Hub for Office Space and Student Accommodation

Birmingham is quickly catching up in the commercial property race. Together’s research shows that 70% of commercial landlords see office space in Birmingham as a prime investment opportunity over the next five years.

Retail spaces are equally attractive, garnering the same level of interest. Yet it’s Purpose-Built Student Accommodation (PBSA) and general student housing that appear to be the rising stars, with 78% of landlords naming them the best bet for long-term yield growth.

As the city continues to benefit from infrastructure projects like HS2 and a thriving university population, its appeal to investors is only set to increase.

Glasgow’s Semi-Commercial Surge: UK Regional Property Investment

Further north, Glasgow is also emerging as a key investment location, particularly in the semi-commercial sector. According to the same study, an overwhelming 98% of landlords have either considered or are actively exploring opportunities involving semi-commercial properties in the city.

These often include mixed-use buildings that combine residential flats with retail or office spaces. Moreover, this trend meets the growing demand for more versatile urban developments.

A Renewed Confidence in Commercial Property

Commenting on the findings, Ryan Etchells, Chief Commercial Officer at Together, expressed optimism about the current state and future of the market.

“Our research highlights an overall optimism across the commercial property market. While London remains an important hub, the increased attention on regional cities signals a shift in investment patterns,” Etchells said.

He also highlighted key economic drivers behind the optimism, including rising business confidence and the shift towards hybrid working. Additionally, renewed belief in the UK’s economic growth has strengthened the overall outlook for commercial property investment.

Flexible Finance Fuels Expansion: UK Regional Property Investment

In a market that’s becoming increasingly dynamic, financial adaptability is key. Etchells emphasised the importance of landlords and developers accessing flexible lending solutions to make the most of these regional opportunities.

“It’s crucial property professionals continue to seek out flexible financial support to help them seize opportunities to grow and diversify their commercial portfolios,” he said. “The specialist lending sector is well positioned to provide the backing needed to achieve those ambitions.”

A Shift in Perspective

The findings suggest a clear transformation in the UK’s commercial property landscape. No longer are London postcodes the sole mark of a smart investment. Cities like Manchester, Birmingham, and Glasgow are proving themselves as credible contenders, offering strong rental yields, diverse tenant bases, and opportunities across both residential and commercial segments.

Over the next five years, commercial landlords who explore beyond traditional areas can unlock new investment opportunities. As a result, they could lead a profitable new chapter in the future of British property investment.