EDINBURGH has been ranked the top UK city for residential investment in a new report, overtaking Cambridge.

Real estate specialist Colliers, in its latest Top UK Residential Investment Cities report published today, attributes the Scottish capital’s rise to “Edinburgh’s solid house-price growth, highly educated residents and expected population growth”.

Edinburgh moved up from second place, pushing Cambridge into the runner-up position, while London rose from fourth to third position in the report for the second half of 2021.

Glasgow made it into the top 10, rising by three places to eighth.

Bristol and Manchester dropped out of the top five rankings, replaced by Oxford in fourth and Belfast as fifth.

Colliers said “less positive” gross domestic product growth and employment forecasts had seen Cambridge knocked off the top spot in the second publication of the analysis of 20 UK cities against 20 indicators covering the economy, property, education and "liveability".

Average earnings declined in Cambridge and income inequality rose, and forecasts around unemployment were revised to be less favourable than six months ago, Colliers noted.

Douglas McPhail, head of Colliers in Scotland, said: "It is pleasing to see that Edinburgh is now recognised as the UK’s top city for residential investment. Scotland’s vibrant capital benefits from thriving digital, science and tech industries thanks to its highly skilled workforce, with many businesses expanding or setting up a new presence in the city.”

He added: “Students are attracted to the city by an excellent lifestyle...After graduation, favourable employment and earning prospects coupled with...excellent amenities help to maintain strong student retention rates in the city. Edinburgh’s demographic and economic advantage over other cities, house-price growth and rental yields make the city innately attractive to residential investors."

Colliers’ top ten cities for investment in H2 2021 are:

1. Edinburgh (up one place)

2. Cambridge (down one place)

3. London (up one place)

4. Oxford (up nine places)

5. Belfast (up two places)

6. Manchester (down one place)

7. Bristol (down four places)

8. Glasgow (up three places)

9. Milton Keynes (up one place)

10. Reading (down two places)