Looking to invest in 2026? These UK cities could offer landlords some of the best long-term investments.
As we prepare for the new year, we’ve taken a closer look at the property market and what investment opportunities may present themselves to you.
Property has historically been a safe and reliable way of generating extra income both in the short term, through rent collection, and in the long term via capital gains. Whether you're looking to expand your property portfolio or become a landlord for the first time, buying a property in an up-and-coming area is still one of the smartest ways to invest.
But which parts of the country are set to flourish in 2026? Here we take a look at some of the UK's most enticing regions.
So, let’s get started.
Newcastle
Newcastle stands out with the highest annual rental growth at 5.1%* according to Zoopla data. With average monthly rents between £761 and £895, the city offers an accessible entry point for investors while delivering strong returns. While new lets saw a marginal 0.2% year-on-year decrease, existing tenancy renewals achieved a robust 3.9% increase, highlighting the value of tenant retention in this market.^
Average property prices in Newcastle currently are £206,000.**
Liverpool
Liverpool presents a compelling investment case with 3.8%* annual rental growth and the average property prices being £185,000.** The city offers relatively affordable average monthly rents between £870 and £923, making it accessible for investors with varying budgets. Liverpool particularly excels in both new lets (1.6% year-on-year increase) and renewals, where rents jumped by an impressive 5.8% - the highest renewal increase among all five cities analysed.^
Cambridge
Cambridge commands the highest average property price (£498,000**) and the highest rents among our featured cities, with monthly averages between £1,232 and £1,600.^* While experiencing a 3.3% annual rental growth overall, the city saw a 1.0% decrease in new letting rates. However, renewals performed strongly with a 4.7% increase, suggesting that established landlords can achieve premium returns by maintaining good tenant relationships in this university city.^
Cardiff
With a 3.1% annual rental growth rate, Cardiff offers average monthly rents between £827 and £1,147.^* Similar to Cambridge, new lets experienced a 1.0% year-on-year decrease, but renewals saw a healthy 4.3% increase.^ This pattern indicates that Cardiff landlords can maximise returns through effective tenant retention strategies.
Here average property prices are £270,000.**
Glasgow
Glasgow shows consistent performance with 2.6% annual rental growth and average monthly rents between £878 and £1,012.*^ Unlike most cities in our analysis, Glasgow achieved positive growth in both new lets (0.8% increase) and renewals (4.2% increase), demonstrating a balanced rental market that rewards investors across both new and established tenancies.^
Average property prices in Scotland's largest city are £194,000.**
Investment insights: What the data tells us
Several key trends emerge from this analysis:
- Renewal premium: Across all five cities, rent increases on renewals significantly outperformed new lets, highlighting the financial benefit of maintaining good tenant relationships.
- Northern momentum: Newcastle and Liverpool lead in annual rental growth, suggesting continued strength in northern property markets.
- Entry point diversity: From Newcastle's accessible average rents (from £761) to Cambridge's premium market (up to £1,600), investors can find opportunities across different budget levels.
- Tenant retention value: With renewal increases ranging from 3.9% to 5.8%, the data clearly shows that minimising void periods and tenant turnover significantly enhances returns.
For landlords looking to expand their portfolios, these five cities offer varying investment profiles to match different strategies - whether seeking affordable entry points with strong growth potential in Newcastle and Liverpool, or established premium markets with solid renewal performance in Cambridge.
