How to Spot the Best Property Investments in Today’s Market

The UK property market has seen big changes in recent years, from rising interest rates to shifting demand in towns and cities (we’ve talked about 2025 trends in our recent insight, here). If you’re thinking about investing in property in 2025, it’s no longer just about location. The best investments today are all about understanding trends, choosing the right type of property, and thinking long-term.

Focus on High-Demand Areas with Long-Term Potential

Before you start browsing listings, take a step back and look at the bigger picture.

Interest rates have stayed relatively high in recent years, which means mortgages are more expensive. At the same time, demand for rental property remains strong in many areas. According to research from CBRE, there’s still solid interest in residential rentals and newer property types like purpose-built student accommodation and logistics units.

It’s important to follow trusted property news, check government updates (like changes to stamp duty or rental regulations), and understand what’s happening in the areas you’re interested in.

Looking Beyond London

London will always be a property hotspot, but some of the best investment opportunities now lie outside the capital. Consider emerging UK property markets that perhaps lie in the North of England, like Manchester and Liverpool.

Cities like Manchester, Birmingham, Leeds, and Bristol offer strong rental demand, lower property prices, and excellent growth potential. Regeneration projects, new transport links (like HS2), and strong local economies make these places ideal for long-term investors.

Even smaller towns and coastal areas – such as Hull, Plymouth, or Southport – are seeing more interest, especially where there’s a mix of affordable housing and good rental demand.

Focus on Yield and Demand

One of the best ways to measure a good property investment is by looking at rental yield: the income you earn from rent compared to the cost of the property.

As a rough guide, anything above 5% is considered a good yield in today’s market, especially if tenant demand is steady. Properties near universities, hospitals, or good commuter links usually perform well.

Avoid areas where properties sit empty for long periods – also known as “voids” – as these can seriously impact your return.

Choosing the Right Property Type

Not all properties perform the same.

• Flats in city centres tend to attract young professionals.
  
• Houses with multiple bedrooms work well for families or shared living (HMOs).
  
• New builds can be energy-efficient and low-maintenance, but older properties may offer better value if you’re open to renovations.
  

Think about who your ideal tenant is, and what they’ll need – things like parking, broadband, green space, or a good school catchment area.

Do the Numbers: ROI and Hidden Costs

The best investments aren’t just about what you buy – they’re about what you spend and keep over time.

Factor in:

• Mortgage costs
  
• Stamp duty
  
• Maintenance and repairs
  
• Letting agent or management fees
  
• Energy efficiency upgrades
  

From 2027, for example, all rental properties in England and Wales will need to have an EPC rating of C or above, which may require insulation or heating upgrades. Choosing a property that already meets these standards can save you a lot of money.

It’s easy to get swept up in property hype, but smart investors take the time to crunch the numbers and plan for the long run.

Make sure your expected rental income covers your costs, leaves room for unexpected repairs, and still gives you a return. Think about what would happen if interest rates rise again or your property is empty for a month or two.

Tools like online mortgage calculators or rental yield checkers can help you build a realistic picture.

Clann’s Perspective: Patience Pays Off

The best property investments in today’s market aren’t always the flashiest or fastest-moving. They’re built on careful research, steady returns, and long-term value.

At Clann Investments, we specialise in identifying premium opportunities that deliver sustainable growth and strong returns. Whether you’re a seasoned investor or exploring your first acquisition, our expert team is here to guide you every step of the way.

Contact Clann Investments today to discover bespoke property solutions tailored to your investment goals and start building a resilient, future-proof portfolio with confidence.