"Increased regulation and evolving tenant expectations mean landlords need to be far more hands-on, regularly reviewing their portfolios, reassessing yields and ensuring their properties remain competitive"
- Jon Cooper - Aldermore
Manchester has topped Aldermore's Buy to Let City Tracker for the second consecutive year, confirmed as the UK's best city for buy-to-let investment ahead of Glasgow, Coventry, Wigan and Nottingham in fifth.
The annual Tracker assesses 30 UK cities across five indicators: average total rent, short-term yield, long-term house price growth over the past decade, vacancy rates as a proportion of total housing stock, and the share of the city's population in the private rental market. This year's edition also marks the first appearance in the top 10 for Liverpool (6th), Derby (9th) and Telford (10th).
Across the board, conditions have strengthened. Average rent per room rose 7.3% year on year, from £518 in 2024 to £556 in 2025, while average short-term yields climbed from 6.9% to 7.4%.
Manchester and the leading cities
Manchester's dominance rests on a combination of factors that few UK cities can match. House prices have grown by 6.3%, the highest of any city in the Tracker, and 32% of its population rents privately, one of the largest shares nationally.
A vacancy rate of just 0.8% points to tight supply and sustained demand. Short-term yields sit at 7.2%, slightly below the national average, positioning the city more firmly as a destination for patient, long-term investors.
Glasgow holds second place, offering one of the strongest short-term returns in the Tracker at 9.9%, comfortably above the 7.4% average. Further down the rankings, Stoke (21st) and Doncaster (27th) recorded the biggest year-on-year jumps, with short-term yields of 8.9% and 9.1% respectively. Both cities carry higher vacancy rates, so landlords considering them will need to weigh those returns against the risk of voids.
Aberdeen struggles at the foot of the table
Aberdeen has slipped to the bottom of the Tracker, replacing Swansea, despite posting a yield of 9.7%. House prices have fallen an average of 3.9% annually since 2015, making it the only city in the Tracker to record sustained negative growth over that period. Vacancy rates of 4.5%, the highest nationally, point to oversupply and weaker underlying demand.
"Unlike previous years, this year's Buy to Let City Tracker has seen noticeably less reshuffling within the top ten, suggesting the market is beginning to stabilise," said Jon Cooper, director of mortgages at Aldermore.
"That relative consistency comes despite a more challenging backdrop for landlords both economically and because of more restrictive regulation. There's no doubt that the operating environment has become more complex. Increased regulation and evolving tenant expectations mean landlords need to be far more hands-on, regularly reviewing their portfolios, reassessing yields and ensuring their properties remain competitive.
"However, the fundamentals remain supportive. Demand for well-located rental homes continues to outstrip supply in many cities, rental income has held firm year-on-year, and competition for quality stock remains high. For landlords prepared to adapt and take a long-term view, there are still resilient and attractive returns to be found."
