Whether you’re buying to let, renovating for a resale, or looking for a second home, here are 5 of the current most profitable cities for investing in property.

Investing in property is one of the best ways to generate long term income, and secure your money for future years to come. Where you choose to invest plays a vital role in determining the success of your venture, so it’s important that you do plenty of research before commencing your property hunt.

To make things easier, we’ve compiled a guide to five of the most profitable UK cities for investing in residential property, so whatever your goals, budget size or timeline, you’ll start things off on the right foot by looking in these areas.

We’ll cover the factors that have made these locations increasingly desirable, as well as the average Return On Investment (ROI) you can expect from each city as an investor.

1. Greater Manchester

After London, Greater Manchester is the highest yielding area for property investment, and this doesn’t just apply to the city centre any more. Offering an average ROI of 6% annually through renting, a rich cultural scene, good job prospects and a population on the rise (it is expected to reach 2,730,076 by 2020, showing 0.74% annual increase), there are several non-central areas that offer lots of opportunity.

2. Sheffield

Sheffield has a population of around 1.5 million strong, and it’s growing. It also has some of the most affordable property prices in the country, and with recent developments making it an increasingly popular and more affluent area, there are plenty of opportunities for investors after a bargain buy. While these properties are unlikely to bring great yield just yet, the low prices mean you can hang on to them for the future, and the current ROI investment score of a whopping 22.7%.

3. Leeds

Another Northern city that’s surrounded by a real buzz at the moment, Leeds has the second fastest growing population (Manchester has the first), and subsequently residential properties are in high demand. Huge developments are currently underway to modernise the city, and returns on investment are expected to soar over the coming decade.

4. Bath

With its gorgeous architecture and rich social and historical scene, it’s easy to see why Bath is an eternally popular place to live, and therefore a great place to invest if you’ve got the cash for a Southern property. With an annual 12.7% average ROI score, you’ll be able to make decent cash out of renting and selling on.

5. Derby

One of the biggest property booms is taking place in Derby, with the average ROI for investors currently at 18%. In the past decade, £4 billion of development cash have been pumped into Derby, and it remains the industrial hub of the North with its historical association with Rolls Royce and Toyota. Derby has showcased some of the most impressive economic growth of any UK city in recent years – so why not get involved in the action?

There are great opportunities for property development all over the UK. However, it’s important to remember that, wherever you choose to invest, there is no guarantee of yielding a profit, even if you do purchase in one of these cities. Do plenty of research before committing to a project, especially if you’re not familiar with the area in which you’re buying. Speak to an independent advisor to ensure your money is being well spent, and good luck!