Edinburgh has once again secured the top spot in Colliers’ latest Top UK Residential Investment Cities report, marking its third consecutive first-place ranking. The Scottish capital continues to lead the UK housing market, reinforcing its reputation as a prime destination for residential investors.
The latest edition of the bi-annual report saw little change among the top-ranked cities. The top four remained unchanged, with Edinburgh taking first place, followed by Glasgow, Manchester, and London. Notably, Reading made a significant leap, climbing six places to fifth, buoyed by a surge in start-up businesses and a projected GDP growth of 2.5% per annum over the next five years.
Edinburgh also outperformed other cities in leisure facilities, boasting a high number of swimming pools, gyms, and health businesses available to residents.
The only other notable shift in the rankings was Oxford’s decline from fifth to ninth place, attributed to lower GDP forecasts, increasing income inequality, and a slowdown in new business creation. Oxford now sits below Milton Keynes (sixth), Belfast (seventh), and Cambridge (eighth), while Cardiff maintained its tenth-place position from the previous report.
Commenting on the rankings, Andrew White, head of UK residential at Colliers, highlighted the market’s stability: “After years of economic uncertainty, it’s notable that key investment locations have remained consistent, signaling resilience in the UK housing sector.”
Colliers’ analysis evaluates 20 UK locations against 24 key indicators, including GDP, population growth, energy efficiency ratings, and leisure facilities. These factors are categorized under economy, research and development, liveability, property, and sustainability, providing a comprehensive assessment for investors.
White emphasized the strong performance of Scottish cities, attributing their success to affordability, economic strength, and high quality of life. He also pointed to London and Manchester’s continued appeal, citing their professional workforce, multinational company presence, and robust infrastructure.
Oliver Kolodseike, director at Colliers Research & Economics, compiled the report and noted the current period of stability: “Government interventions can often impact rankings, but in the past six months, few significant housing policy changes have altered investor sentiment. However, with new stamp duty levels set to take effect in March, our next analysis may reveal a different landscape.”
With Edinburgh maintaining its dominance, the city continues to set the benchmark for residential investment in the UK.