The Top 15 UK Postcodes for Property Investment in 2022/2023

Investing in property is a popular choice for many looking to secure a solid return on their money. With that in mind, we have compiled a list of the top 15 postcodes in the UK for property investment in 2022. These areas offer a combination of attractive average asking prices, high average rents, and impressive yields for investors.

1. NG7 – Nottingham Located close to the city centre, NG7 is a popular choice for property investors due to its proximity to the University of Nottingham and Nottingham Trent University. This area is bustling with student accommodation, which contributes to its high rental yields. Additionally, the area benefits from a variety of amenities, good transport links, and a strong local economy, making it an attractive option for both students and professionals.
2. NG1 – Nottingham NG1 encompasses Nottingham’s city centre, known for its vibrant atmosphere and historic charm. The area is home to a variety of shops, restaurants, bars, and cultural attractions, making it a popular destination for both residents and visitors. With its strong demand for rental properties from students, young professionals, and families, NG1 offers investors excellent potential for capital growth and consistent rental income.
3. BD1 – Bradford Situated in the heart of West Yorkshire, BD1 offers affordable property prices and strong rental yields. The area is popular among professionals and students alike due to its proximity to the University of Bradford, excellent transport links, and a range of leisure and shopping amenities. The ongoing regeneration of the city centre is also attracting more people to the area, increasing the demand for rental properties.
4. M14 – Manchester M14 is a sought-after area in south Manchester, primarily due to its location near the University of Manchester and Manchester Metropolitan University. The area is popular among students and young professionals, with an abundance of rental properties available. M14 also boasts a variety of amenities and good transport links to the city centre, making it an ideal location for property investment.
5. NE6 – Newcastle Upon Tyne Located in the north-east of England, NE6 is an attractive area for property investment thanks to its affordability and impressive rental yields. The area is popular with both students attending Northumbria University and Newcastle University and professionals working in the city centre. With excellent transport links, a range of amenities, and ongoing regeneration projects, NE6 is a promising investment opportunity.
6. YO10 – Yorkshire YO10 is situated in the historic city of York, which is known for its rich heritage, picturesque streets, and strong tourism industry. The area benefits from its proximity to the University of York and York St John University, attracting a large student population. With its excellent transport links, thriving local economy, and increasing demand for rental properties, YO10 offers investors a solid investment choice.
7. SA1 – Swansea Swansea’s SA1 postcode covers the waterfront and city centre areas, offering investors a mix of residential and commercial properties. The ongoing regeneration projects in the area, such as the SA1 Swansea Waterfront development, are transforming the landscape and attracting more residents and businesses. With its proximity to Swansea University and the vibrant city centre, SA1 boasts strong rental yields and potential for capital growth.
8. CF37 – Cardiff Located in the vibrant Welsh capital, CF37 offers a mix of residential and commercial properties near the University of South Wales and the city centre. The area is popular among students and professionals alike, with good transport links and a range of amenities. With ongoing development projects and increasing demand for rental properties, CF37 is a promising location for property investment.
9. SO17 – Southampton SO17 is situated in the bustling port city of Southampton, known for its strong maritime heritage and thriving local economy. The area is popular among students attending the University of Southampton, resulting in high rental demand and yields. Additionally, its proximity to the city centre, excellent transport links, and a variety of amenities make SO17 an attractive investment opportunity.
10. YO31 – Yorkshire (continued) The area is home to a mix of students and professionals, with its proximity to both the University of York and York St John University, as well as the city centre. YO31 benefits from excellent transport links and a strong local economy, driven by tourism and a thriving business sector. With its increasing demand for rental properties and potential for capital growth, YO31 is a great choice for investors.
11. NR5 – Norwich NR5 is a popular area in the historic city of Norwich, known for its rich heritage, picturesque streets, and thriving local economy. The area is home to the University of East Anglia and Norwich Research Park, attracting a large student and professional population. With excellent transport links, a variety of amenities, and strong demand for rental properties, NR5 offers a solid investment opportunity.
12. SR1 – Sunderland SR1, located in the north-eastern city of Sunderland, offers a mix of residential and commercial properties with affordable prices and strong rental yields. The area is popular among students attending the University of Sunderland and professionals working in the city centre. With ongoing regeneration projects and excellent transport links, SR1 is an attractive location for property investment.
13. LS2 – Leeds Situated in the heart of Leeds, LS2 offers a prime location for property investment with its proximity to the University of Leeds and Leeds Beckett University. The area is popular among students and young professionals, contributing to its strong rental yields. With a variety of amenities, excellent transport links, and a thriving local economy, LS2 is an attractive option for investors.
14. LS4 – Leeds LS4, another popular area in Leeds, is known for its mix of residential and commercial properties. Located near the city centre and universities, LS4 attracts a diverse population of students and professionals. The area offers a range of amenities, good transport links, and a strong local economy, making it an appealing choice for property investors.
15. CF24 – Cardiff Located in the Welsh capital, CF24 is a popular area for property investment due to its proximity to Cardiff University and the city centre. The area attracts a mix of students and professionals, leading to high demand for rental properties and strong rental yields. With excellent transport links, a variety of amenities, and ongoing development projects, CF24 offers promising potential for property investors.

What are the Connections?

Upon examining the data for the top 15 UK postcodes for property investment, several key connections emerge:

1. Proximity to universities: Many of the top-ranking postcodes are situated near prominent universities, such as the University of Nottingham, University of Manchester, and University of Leeds. This proximity generates a consistent demand for rental properties from students, leading to higher rental yields and strong occupancy rates.
2. Strong local economies: The cities featured in the list, such as Manchester, Leeds, and Cardiff, are known for their thriving local economies. This economic stability can contribute to a robust property market, attracting both domestic and international investors. A strong local economy also leads to job creation, which in turn increases the demand for rental properties from professionals.
3. Excellent transport links: Good transport connections are a common theme among the top postcodes. Proximity to public transport networks and major roads not only makes these areas more desirable for tenants but also increases the potential for capital growth in the property market.
4. Ongoing regeneration and development projects: Several of the top postcodes, such as BD1 in Bradford and SA1 in Swansea, are undergoing significant regeneration and development projects. These initiatives can transform previously overlooked areas into desirable locations for both living and investing, driving up property prices and rental demand.
5. Affordability: Many of the top postcodes offer relatively affordable property prices when compared to more expensive areas in the UK. This affordability can attract investors seeking to maximize their rental yields while keeping initial investment costs lower.
6. Diverse property types: The top postcodes feature a mix of residential and commercial properties, catering to a wide range of investment preferences and budgets. This diversity allows investors to create a balanced and well-rounded property portfolio.

Top 15 Postcodes for Property Investment

1. NG7 – Nottingham Average Asking Price: £170,278 Average Rent: £1,598 Average Yield: 11.30%
2. NG1 – Nottingham Average Asking Price: £159,083 Average Rent: £1,473 Average Yield: 11.10%
3. BD1 – Bradford Average Asking Price: £54,526 Average Rent: £483 Average Yield: 10.60%
4. M14 – Manchester Average Asking Price: £205,102 Average Rent: £1,721 Average Yield: 10.10%
5. NE6 – Newcastle Upon Tyne Average Asking Price: £134,641 Average Rent: £1,104 Average Yield: 9.80%
6. YO10 – Yorkshire Average Asking Price: £286,470 Average Rent: £2,328 Average Yield: 9.80%
7. SA1 – Swansea Average Asking Price: £140,001 Average Rent: £1,073 Average Yield: 9.20%
8. CF37 – Cardiff Average Asking Price: £135,985 Average Rent: £1,039 Average Yield: 9.20%
9. SO17 – Southampton Average Asking Price: £223,073 Average Rent: £1,709 Average Yield: 9.20%
10. YO31 – Yorkshire Average Asking Price: £281,391 Average Rent: £2,141 Average Yield: 9.10%
11. NR5 – Norwich Average Asking Price: £261,284 Average Rent: £1,934 Average Yield: 8.90%
12. SR1 – Sunderland Average Asking Price: £74,502 Average Rent: £542 Average Yield: 8.70%
13. LS2 – Leeds Average Asking Price: £153,957 Average Rent: £1,078 Average Yield: 8.40%
14. LS4 – Leeds Average Asking Price: £203,493 Average Rent: £1,364 Average Yield: 8.00%
15. CF24 – Cardiff Average Asking Price: £211,417 Average Rent: £1,397 Average Yield: 7.90%

The provided data highlights the top 15 UK postcodes for property investment in 2022/2023, with strong rental yields and promising opportunities. Factors such as proximity to universities, strong local economies, excellent transport links, ongoing development projects, affordability, and diverse property types contribute to their appeal. By considering these factors, investors can make informed decisions when choosing the best locations for their property investments in the UK. Good luck.