The fastest growing UK property markets in June 2026 are Belfast (+6.2%), Blackburn (+6%) and Burnley (+5.4%), each rising at more than four times the national average. For landlords and property investors, markets experiencing above-average growth like this attract attention for their potential to deliver both rental returns and capital appreciation. However, purchasing and eventually disposing of investment property can trigger a range of tax liabilities.
This article explores the UK's fastest growing property markets and the key tax considerations that may arise when investing in them.
Key Takeaways
- The fastest-growing UK property markets are concentrated in Northern Ireland, the North West and the North East
- Among them, the fastest growing property market is Belfast, which has recorded an annual growth of 6.2%
- 17 of the 20 fastest-growing UK markets have an average house price below £200,000, suggesting house price affordability is playing a role in driving demand
- For property investors considering these high-growth markets, purchase and disposal taxes can affect overall returns
- Purchasing an additional residential property triggers the 5% SDLT higher-rate surcharge (FA 2003 Sch 4ZA)
- Non-UK resident investors pay a further 2% SDLT surcharge (FA 2003 Sch 9A)
- Investors who realise gains when selling properties may be liable to Capital Gains Tax at 18% or 24%, with UK residential property disposals generally reportable to HMRC within 60 days of completion (TCGA 1992)
Which Are the Fastest Growing UK Property Markets Right Now?
According to Zoopla’s June 2026 house price guide, the fastest-growing UK property markets right now are Belfast, Blackburn and Burnley, with annual house price growth of 6.2%, 6% and 5.4% respectively. They are followed by Rochdale, Liverpool and Barnsley.
A common theme among many of these strongest-performing markets is affordability. Most of the locations in the top 20 areas presented in the table below have average house prices below £200,000, making them accessible to a wider pool of buyers. By contrast, growth remains much weaker across parts of southern England, several coastal markets and prime central London.
The average UK house price is now £271,900, up 1.5% over the past 12 months, according to Zoopla's June 2026 House Price Index. While the national market continues to grow, the figures show that house price growth is increasingly being driven by a relatively small group of affordable regional markets.
Rank | City | Average House Price | Annual Growth (%) |
|---|---|---|---|
1 | Belfast | £198,500 | 6.2% |
2 | Blackburn | £152,100 | 6.0% |
3 | Burnley | £141,200 | 5.4% |
4 | Rochdale | £186,900 | 4.8% |
5 | Liverpool | £169,700 | 4.5% |
6 | Barnsley | £171,600 | 4.3% |
7 | Wigan | £187,400 | 3.7% |
8 | Birkenhead | £203,000 | 3.7% |
9 | Newcastle | £163,900 | 3.5% |
10 | Bolton | £187,400 | 3.4% |
11 | Stoke | £156,900 | 3.3% |
12 | Sunderland | £127,600 | 3.3% |
13 | Glasgow | £165,000 | 3.2% |
14 | Preston | £195,500 | 3.2% |
15 | Doncaster | £163,600 | 3.0% |
16 | Manchester | £238,500 | 3.0% |
17 | Hull | £116,400 | 2.9% |
18 | Leeds | £216,700 | 2.6% |
19 | Huddersfield | £189,800 | 2.5% |
20 | Bradford | £167,600 | 2.5% |
Why Are Affordable Markets Growing Fastest?
Lower prices keep mortgage repayments manageable at current interest rates, so demand holds up where homes cost less.
Manchester (3.0%) is the only higher-priced city still rising quickly, but that’s mainly driven by population growth, a maturing tech and financial services sector, and a persistent shortfall of homes against demand.
What Tax Do You Pay When Buying In a Growth Market?
Many of the UK's fastest growing property markets remain relatively affordable compared with the national average. However, a lower purchase price does not translate to lower tax bills.
If you buy a property as an additional dwelling, such as a second home, you will generally pay the Stamp Duty Land Tax (SDLT) higher rates surcharge. For the 2026/27 tax year, this means an extra 5% SDLT on top of the normal residential rates for anyone buying an additional property, as provisioned in the Finance Act 2003, Sch 4ZA. If the buyer is not a UK resident, a further 2% surcharge may also apply, as per the Finance Act 2003, Sch 9A.
As a result, SDLT can represent a significant upfront cost, even in markets where average property prices remain below £200,000.
Worked Example: Buying a £198,500 Second Home in Belfast
Suppose Sarah already owns a home in Manchester and is looking to buy another one as an investment in Belfast for the city's average house price of £198,500.
Because the property will be an additional dwelling rather than her main residence, Sarah will be subject to the 5% SDLT higher rates surcharge.
SDLT Band | Main Residence | Additional Property |
|---|---|---|
£0-£125,000 | £0 (0%) | £6,250 (5%) |
£125,000-£198,500 | £1,470 (2%) | £5,145 (7%) |
Total SDLT | £1,470 | £11,395 |
If Sarah were buying the property as her main home, her SDLT bill would be £1,470. However, because she is purchasing a second home, the SDLT bill increases to £11,395.
In other words, the decision to buy the property as an investment adds £9,925 to her upfront acquisition costs before she has received any rental income or benefited from any future house price growth.
If Sarah were also a non-UK resident, she could face a further SDLT charge of approximately £3,970, taking her total SDLT bill to around £15,365.
For investors comparing opportunities across different regions, this highlights an important point: while Belfast's average property price remains below the UK average, the SDLT surcharge can still represent a significant initial cost that should be factored into expected returns.
What About the Tax When You Sell?
When you sell a UK investment property, the profit you make is usually subject to Capital Gains Tax (CGT). For 2026/27, this is typically charged at 18% or 24%, depending on your income level, after a £3,000 tax-free allowance.
For example, if a higher-rate landlord makes a £50,000 profit on a sale, £47,000 would be taxable after the allowance, resulting in around £11,280 in Capital Gains Tax at 24%.
You’ll normally need to report and pay this within 60 days of completing the sale. You must still report the disposal of any UK residential property within 60 days, even if no tax is due.
As mentioned in the Taxation of Chargeable Gains Act (TGCA) 1992, your main home is usually exempt from Capital Gains Tax under Private Residence Relief, which is the rule that prevents tax on most owner-occupied homes. This does not apply to additional properties.
Conclusion
The UK’s fastest growing property markets are attractive because they feel accessible — lower entry prices, strong annual growth, and steady demand in regional cities. But once you move from observation to action, the reality becomes more complex.
What looks like straightforward growth on a chart turns into a layered decision once purchase taxes, ownership structure, and eventual disposal are taken into account. In practice, two investors buying the same property in the same street can end up with very different outcomes purely because of how the transaction is structured and reported.
Thinking through a sale, acquisition, or portfolio restructure in the current market?
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FAQs
Belfast, at +6.2% annually (a gain of £11,650 on an average price of £198,500), is the fastest-growing UK property market, followed by Blackburn (+6.0%) and Burnley (+5.4%).
If it's an additional property, yes. A 5% SDLT surcharge applies to the whole price from £40,000. Non-resident buyers pay a further 2%. The surcharge applies regardless of how affordable the property is.
Gains on UK residential property are taxed at 18% or 24% for 2026/27, after a £3,000 annual exempt amount. The exact figure depends on your income and any reliefs, and the tax is due within 60 days of completion.
There is no single best place to buy an investment property in the UK, as performance depends on your strategy, budget, and time horizon. That said, Belfast, Blackburn and Burnley are among those currently showing above-average price increases.
The UK property market in 2026 is expected to remain uneven rather than experience a uniform “boom”. National growth is modest, but performance varies significantly by region. More affordable areas are continuing to see stronger growth, while higher-priced parts of southern England and prime London remain relatively subdued.
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