The East of England has been named the second most attractive region for property investment in the UK.
New research from Handelsbanken’s Property Investor Report 2025 placed the region just behind London, with 42% of investors identifying it as a top target for property investment over the next 12 months.
Sarah Dean, district head for the East of England at Handelsbanken, said: “It is no surprise that the East of England is a magnet for investors, as it is an area offering massive potential for growth, whilst still offering a diverse economy and with affordable areas ripe for development.”
London reclaimed the top spot, with 46% of respondents naming it their preferred investment region, up from fifth place in 2024.
Chris Teasdale, chief branch officer at Handelsbanken, said: “London’s comeback is a clear sign that investors are prioritising resilience and long-term value.
“While regional markets have delivered strong returns in recent years, the capital’s infrastructure, rental demand, and global appeal continue to set it apart.
“This year’s data shows that confidence in London is not just returning, it’s accelerating.”
The East of England maintains strong momentum after leading the rankings in 2024.
Cities like Cambridge continue to draw investors with their mix of ‘innovation, quality of life, and economic diversity’.
The South East also saw growing interest, with 34% of respondents naming it their preferred investment region, up from 21.5% last year.
However, investor confidence has not been evenly spread across the UK.
Yorkshire and the Humber dropped sharply to just 4.5%, after recording a 12.5% interest in 2024.
More than half (54%) of investors plan to expand their property portfolios in the coming year, the report found.
James Sproule, UK chief economist at Handelsbanken, said: “London’s rebound is more than a headline, it’s a signal.”