13 Fastest Growing Cities In the UK (2025)

While most people dream of investing in properties like London, it is not always a great choice. If you have limited capital but still want to invest in property that will give you great ROI in future, fast-growing cities are the best option.

Here, we have listed some of the fastest-growing cities and towns in the UK that can give excellent returns on different property investment methods.

Fastest-growing cities/towns in the UK 

Here’s a strategic analysis of the top 10 cities for property investment:

1. Cambridge

Cambridge has been one of the fastest-growing cities in the UK in recent years, with a steady population increase (17.9%). This growth is largely due to the presence of the University of Cambridge, which attracts students and academics from all over the world. 

The city is also home to several high-tech companies, such as ARM Holdings and Smith & Nephew. Due to its strong economy and high demand for housing, Cambridge is one of the most expensive places to live in the UK. The average house price in Cambridge is significantly higher than the national average. 

• Population Growth: 17.9%
• High-skilled Workforce: 57.0%
• Average House Price: £461,000
• GVA per Hour: £62.9
• New Economy Firms: 43.2 per 10,000
• Employment Rate: 81.7%
• Digital Connectivity: High

2. Peterborough

Peterborough is a city located in the East of England, about 80 miles north of London. It’s a historic city with a rich cultural heritage, known for its stunning cathedral and picturesque waterways. In recent years, Peterborough has experienced significant growth, particularly due to its strategic location and improving infrastructure. 

The city is well-connected to major cities like London and Cambridge through rail and road networks. It’s also home to a diverse economy, with sectors like engineering, technology, and healthcare contributing to its growth. The housing prices here are comparatively more affordable than in cities like Cambridge. 

• Population Growth: 15.4%
• High-skilled Workforce: 31.0%
• Average House Price: £290,000
• GVA per Hour: £32.1
• New Economy Firms: 70.3 per 10,000
• Employment Rate: 78.3%
• Digital Connectivity: Moderate

3. Milton Keynes

Milton Keynes is a planned city located in Buckinghamshire, England. Known for its grid-like layout and extensive network of cycle paths, it’s often referred to as a “new town.” The city has grown rapidly since its inception in the 1960s, attracting businesses and residents with its modern infrastructure and convenient location. 

It’s a popular choice for families due to its high quality of life, excellent schools, and numerous green spaces. While Milton Keynes offers a more affordable housing market compared to cities like London and Cambridge, property prices have been increasing in recent years.

• Population Growth: 15.0%
• High-skilled Workforce: 38.0%
• Average House Price: £370,000
• GVA per Hour: £42.1
• New Economy Firms: 37.0 per 10,000
• Employment Rate: 80.0%
• Digital Connectivity: High

4. Exeter

Exeter is a historic city in Devon, England, nestled on the River Exe. Known for its stunning cathedral, cobbled streets, and picturesque quayside, Exeter is great for those who are looking for a blend of ancient history and modern living.

The city has experienced significant growth in recent years, driven by its strong economy, excellent universities, and vibrant cultural scene. 

Exeter is home to the University of Exeter, a prestigious institution that attracts students from around the world.

• Population Growth: 14.4%
• High-skilled Workforce: 41.0%
• Average House Price: £350,000
• GVA per Hour: £41.4
• New Economy Firms: 33.2 per 10,000
• Employment Rate: 82.1%
• Digital Connectivity: Moderate

5. Northampton

Northampton is a historic market town located in the East Midlands of England. The city is known for its rich history, beautiful architecture, and vibrant cultural scene. This makes Northampton a place with a great quality of life.

Similar to Exeter, this city has also seen steady growth over the years and has a strong economy, and transportation facilities, while having an affordable housing market. 

This city is a popular choice for families and young professionals due to its good schools, numerous parks, and convenient location.

• Population Growth: 12.7%
• High-skilled Workforce: 36.0%
• Average House Price: £320,000
• GVA per Hour: £32.5
• New Economy Firms: 80.1 per 10,000
• Employment Rate: 80.1%
• Digital Connectivity: Moderate

6. Reading

Reading is a thriving town about 40 miles west of London, making it ideal for those who want proximity to the capital without London’s cost. Known for its tech industry and the University of Reading, it attracts professionals and students. The town has a strong job market, with many IT, finance, and public sector opportunities.

Housing in Reading is pricier than the national average but generally more affordable than in London. The market has a good mix of apartments and family homes, making it suitable for both young professionals and families. 

Buying property in Reading can be a solid investment due to consistent demand driven by its tech sector and excellent connectivity via train and the M4 motorway. 

• Population Growth: 12.6%
• High-skilled Workforce: 44.0%
• Average House Price: £410,000
• GVA per Hour: £48.6
• New Economy Firms: 33.4 per 10,000
• Employment Rate: 81.7%
• Digital Connectivity: High

7. Telford

Telford is a modern town in Shropshire, West Midlands, known for its rapid growth and strong infrastructure, making it appealing to families and young professionals. Originally developed in the 1960s and named after engineer Thomas Telford, it’s close to Birmingham and offers a good quality of life with affordable housing. 

The area has extensive green spaces, like the Ironbridge Gorge UNESCO site, and family-friendly amenities. Telford’s housing market is considered affordable compared to many UK towns, with a good supply of family homes and apartments. 

Property values here have shown steady growth, making it an increasingly attractive investment for first-time buyers and families seeking stability and quality public amenities.

• Population Growth: 12.4%
• High-skilled Workforce: 29.0%
• Average House Price: £250,000
• GVA per Hour: £30.5
• New Economy Firms: 36.8 per 10,000
• Employment Rate: 74.5%
• Digital Connectivity: Low

8. Coventry

Coventry is a historical city in the West Midlands with a vibrant cultural scene renowned for its universities and rich medieval history. It’s ideal for students, professionals, and families who want a balance of urban and suburban life. Coventry has affordable housing compared to nearby cities like Birmingham.

The cost of living is also moderate, with a monthly expense of £760 for a single person, excluding rent. Coventry’s stable property market and ample rental opportunities make it appealing for both buyers and renters, especially those working in the West Midlands region.

• Population Growth: 11.8%
• High-skilled Workforce: 34.0%
• Average House Price: £280,000
• GVA per Hour: £37.5
• New Economy Firms: 57.1 per 10,000
• Employment Rate: 79.3%
• Digital Connectivity: Moderate

9. Slough

Slough, located close to London, is a well-connected, thriving area known for its multicultural community and strong economy. It’s ideal for professionals working in London due to its excellent transport links, including a 30-minute train journey to the capital. 

The housing market in Slough is moderately priced, which is cheaper than London but still above national averages. The demand is high, driven by the influx of commuters and local employment opportunities, making Slough a solid option for both buyers and investors. 

However, the overall cost of living is relatively high, with typical monthly expenses for a single person averaging £1,675.44, putting Slough in the top 15% of the world’s most expensive cities.

• Population Growth: 11.2%
• High-skilled Workforce: 52.0%
• Average House Price: £450,000
• GVA per Hour: £62.9
• New Economy Firms: 59.7 per 10,000
• Employment Rate: 81.3%
• Digital Connectivity: High

10. Swindon

Swindon, in South West England, is a developing town known for its family-friendly neighbourhoods and affordable housing compared to nearby cities.  Swindon’s property market is appealing to first-time buyers and investors alike, as it offers attractive rental yields relative to surrounding towns and cities. 

About 80% of the housing stock here comprises houses, indicating a family-oriented market. The town’s transport links to London and Bristol make it a suitable location for commuters, while local amenities and green spaces enhance its residential appeal.

• Population Growth: 10.7%
• High-skilled Workforce: 35.0%
• Average House Price: £300,000
• GVA per Hour: £47.5
• New Economy Firms: N/A (data not available)
• Employment Rate: N/A (data not available)
• Digital Connectivity: Moderate

11. Brighton

Brighton, located on the English Channel, is known for its vibrant arts scene, historic architecture, and lively beach culture, making it popular among young professionals and families alike. The city is situated 51 miles south of London, which makes it an ideal location for those seeking proximity to the capital without the intense pace of city life.

The housing market here leans toward the expensive side, with average monthly rent for a 45 m² studio around £2,103. 

Hence, naturally, the property values also stay high. For individuals seeking a lively coastal environment with strong job opportunities and excellent cultural offerings, Brighton is an attractive choice.

• Population Growth: N/A (not specified)
• High-skilled Workforce: N/A (not specified)
• Average House Price: N/A (not specified)
• GVA per Hour: N/A (not specified)
• New Economy Firms: 46.8 per 10,000
• Employment Rate: N/A (not specified)
• Digital Connectivity: High

12. Aldershot

Aldershot, located in Hampshire, is famously known as the “Home of the British Army.” This historic connection transformed it from a small village into a vibrant Victorian town in the 19th century. Today, Aldershot has a strong military presence, with several landmarks like the Aldershot Military Museum showcasing its rich military history.

The town offers excellent transport links, particularly for commuters to London, and has a diverse community with good amenities, including parks, schools, and leisure facilities. Aldershot is well-suited for families and history enthusiasts looking for an area with a unique character and a quieter lifestyle than larger cities.

• Population Growth: N/A (not specified)
• High-skilled Workforce: N/A (not specified)
• Average House Price: N/A (not specified)
• GVA per Hour: £59
• New Economy Firms: N/A (not specified)
• Employment Rate: N/A (not specified)
• Digital Connectivity: Moderate

13. Warrington

Warrington, located in Cheshire, offers a balanced blend of urban convenience and rural charm. With proximity to both Manchester and Liverpool, Warrington is great for people looking for more affordable living without sacrificing accessibility to major urban centres.

The town is known for its strong employment opportunities, particularly in logistics, retail, and manufacturing, thanks to Warrington’s strategic location near the M6, M62, and M56 motorways. 

The redevelopment projects have also helped increase the property value of Warrington. The area also has an excellent reputation for schools, which makes it attractive to families. Green spaces like Sankey Valley Park and Walton Hall Gardens further add to the value of housing property. 

• Population Growth: N/A (not specified)
• High-skilled Workforce: N/A (not specified)
• Average House Price: N/A (not specified)
• GVA per Hour: N/A (not specified)
• New Economy Firms: 34.5 per 10,000
• Employment Rate: N/A (not specified)
• Digital Connectivity: Moderate

Key Investment Considerations:

1. Population Growth: All these cities show strong population growth, indicating increasing demand for housing
2. Economic Strength: High GVA and wage levels suggest strong economic fundamentals
3. Business Environment: Strong presence of new economy firms and business start-ups
4. Skills Base: High proportion of skilled workforce
5. Infrastructure: Good digital connectivity and housing stock growth
6. Employment: Strong employment rates and low unemployment in most cities

FAQs

Which is the best city to settle in the UK?

The ideal city to settle in the UK depends on your specific preferences, such as employment opportunities, lifestyle, budget and amenities. The growing cities listed here offer a vibrant cultural scene and strong job markets, making them attractive to many.

Which part of the UK is best for property investment?

The North East and Scotland are currently favourable for property investment due to high rental yields and affordable property prices. For instance, Sunderland in the North East offers an average gross rental yield of 8.96%.

Which city has the highest rental yield in the UK?

Sunderland has the highest rental yield in the UK, with an average gross rental yield of 8.96%. 

Which city is best for property investment in the UK?

Cities like Leeds are considered excellent for property investment due to strong rental returns and a highly active housing market.

Where is the ROI highest in the UK?

The North East and Scotland have some of the highest ROIs for rental properties, with cities like Liverpool and Glasgow showing favourable returns due to high yields and increasing property demand.