Mish Liyanage – Property Expert

The UK property market is under pressure. Supply is tight, regulatory burdens are rising, and some investors are pulling back. But even in this environment, there are real opportunities — if you know where to look and how to act.

One of the most powerful levers I’ve found as a property investor and operator is strategic targeting of high-yield areas. Rather than chasing the broad market or hoping for general recovery, you focus on locations and property types that deliver resilience, demand and return.

Why Location Still Rules

It’s easy to get caught up in property jargon: “yield”, “capital growth”, “BRRRR strategy”, however you label it. But behind every successful deal is the right location. Specifically:

Postcodes with strong demand drivers: Think universities, hospitals, major employers, transport hubs. These create a steady pool of tenants — whether it’s students, professionals or key workers.

Markets where supply is constrained and demand is resilient. In such areas, yields remain attractive because rental rates don’t collapse easily and landlords don’t face as much competition.

Places where the risk-return balance tilts in favour of the investor: entry prices manageable, regulatory risk understood, exit routes visible.

By narrowing focus to high-yield zones, you build a property portfolio that isn’t just about hope — it’s about strategy.

High-Yield Areas in Today’s UK Market

From my experience working across the UK, several existing trends stand out:

Northern cities and major regional hubs often offer better yields than many overheated Southern markets. Lower purchase prices + strong rental demand = higher gross yields.

Locations near universities and student populations are especially interesting. Turnover is higher, but so is demand year-round.

Areas with large professional or commuter pools (good links to bigger employment centres) are under-appreciated. Sometimes overlooked by others, which means less competition and more value.

Regeneration zones: where local authorities are investing, infrastructure is improving, and new housing supply is limited. These can offer both yield and growth if you enter with clarity.

Identifying these areas takes research, local insight, and an investor mindset that favours precision over trend-chasing.

How to Target the Right Areas — A Practical Guide

Here are some actionable steps you can apply:

Map demand drivers

• Locate postcodes with universities, hospitals, business parks, transport hubs.
• Check rental occupancy, tenant types and turnover.
• Assess commuting corridors or regions where people are moving for lifestyle and affordability.

Assess supply and regulation

• Is current supply restricted (planning issues, licensing, older stock)?
• Are there Article 4 or HMO licensing implications that reduce competition?
• What’s the typical purchase price vs expected rent in the area?

Calculate realistic yields and growth potential

• Aim for gross yields in the range of 8-13% (depending on type and location).
• Consider future demand: is the area likely to grow, or is it already saturated?
• Factor in exit strategy: would you resell into that area if needed?

Engage local expertise

• Local letting agents know tenant demand and behaviour.
• Local contractors for realistic refurbishment costings.
• Local letting compliance specialists to understand licensing and regulation.

Build a disciplined portfolio mindset

• Focus on fewer, high-quality areas you understand deeply rather than spreading thin.
• Monitor performance, tenant mix and regulation changes proactively.
• Be ready to pivot if demand shifts or regulatory headwinds bite.

The Bigger Picture: Why This Strategy Matters Now

In a tougher property market, the old “buy anywhere and rent it out” mindset doesn’t cut it. Regulatory pressure, tax changes, higher cost of ownership all raise the bar. What succeeds now is smarter, tighter, more strategic investment.

By targeting high-yield areas with strong fundamentals, you reduce risk, improve cash flow, and position your portfolio for resilience — not just survival. And when you do this well, you don’t just manage through a crisis — you take advantage of it.

The property crisis isn’t just a challenge: it’s an inflection point. Those who treat it as an opportunity will win. By being rigorous about location, focused on demand drivers, and disciplined in execution, you can build a portfolio that thrives when others struggle.

Strategic targeting of high-yield areas isn’t a niche tactic — it’s the foundation of modern property investment strategy. And for those willing to move with precision and purpose, the returns are very real.