London has hit the top spot for the first time in Colliers’ latest report, while Manchester makes for a competitive runner-up thanks to its exceptional investor appeal.
The capital city has risen through the ranks to become a new leader in the Colliers Top UK Residential Cities Report for H1 2025, which analyses the various qualities 20 UK cities to help investors navigate the market.
The past 12 months have seen lots of change, with a new government settling in with new housing policies, energy targets, regional growth plans and infrastructure spending all creating a sense of optimism coupled with uncertainty for the property investment space.
However, as Colliers’ report highlights, there are still plenty of opportunities to be had for on-the-ball investors who are equipped with the knowledge they need to know where to look.
The analysis looked at 24 key “indicators” to score each city, which fall under five pillars: economics, research and development, liveability, property, and environmental.
Is London making a comeback?
London has moved from the fourth to the top spot for the first time since Colliers first launched its UK cities report back in 2021, having shown considerable improvement across a number of measures that have improved its resilience as an investment destination.
Being the most globally recognised city in the UK, and arguably one of the most important economically worldwide, the capital ranked stands out to investors thanks to its sheer number of attractions, electric vehicle uptake, and leisure business density.
It also scored the highest in the R&D pillar overall, ahead of Cambridge and Oxford, while tanking fourth in the Economics pillar. Where it falls down – which anyone looking at the property market will already be aware of – was in its high house prices and rents making it one of the least affordable places to buy and live.
However, the report notes: “The property market—both residential and commercial—remains resilient, with stakeholders adept at adapting to evolving trends.
“Whether seeking short-term leases or long-term investment opportunities, London offers the scale, flexibility, and sophistication to meet diverse investor needs.”
Manchester remains top choice for property investors
As far as regional UK cities go, the North West’s Manchester is the “city of choice for both domestic and international investment”, says Colliers.
With an economy worth £80bn, world-class transport infrastructure, and a broad talent pool enhanced by the city having the largest student population outside the capital, this location continues to see an influx of new residents drawn to its access to global brands, enterprise, and affordable housing.
In popular culture, Manchester has always been known locally and internationally for its music scene, with globally renowned bands like Oasis, The Chemical Brothers and Joy Division being famously proud of their ‘Madchester’ roots.
In Colliers’ report, the city has seen major improvements in factors like life satisfaction, business creation, and rental yields, drawing it up to second place in the overall ranking. It also places in the top five for Economics, R&D and Property – putting it ahead of the capital specifically for its property investment outlook.
Other notable findings
Making up the rest of the top five list in the Top UK Residential Cities Report for H1 2025 were Glasgow in third place, Edinburgh fourth, and Milton Keynes fifth.
All three cities had scored highly in previous analysis, while they had also seen some promising improvements across certain key indicators, making them strong contenders for investors.
Honing in on the five pillars, the top cities in each were as follows:
- Economics: Bristol, Cambridge, Manchester, London, Leeds
- R&D: London, Oxford, Cambridge, Manchester, Edinburgh
- Liveability: Oxford, Reading, Edinburgh, Belfast, London
- Property: Liverpool, Glasgow, Belfast, Newcastle, Manchester
- Environmental: Milton Keynes, Edinburgh, Cardiff, Leeds, Cambridge
