Buy-to-let hotspots revealed as landlords look north | EUROtoday

Buy-to-let traders are more and more trying north, drawn by greater yields and decrease buy costs, based on new analysis. A current research by Hamptons reveals a major shift in funding patterns, with northern England and the Midlands turning into prime targets for landlords.

Nearly 39% of buy-to-let properties bought in Britain in the course of the first 4 months of 2025 have been positioned in these areas, a marked improve from 24% in 2007 and 34% in 2022. This northward migration is attributed to a number of elements, together with the influence of stamp obligation prices and decrease rental yields in southern England.

The common value paid by traders within the Midlands and North this 12 months was £150,480, considerably lower than the £292,240 common paid by landlords within the South. This substantial value distinction, coupled with doubtlessly greater rental yields, makes the North and Midlands an more and more engaging proposition for buy-to-let traders in search of higher returns. The development suggests a rising disparity within the UK property market, with funding more and more targeted on areas providing better affordability and potential profitability.

Hamptons mentioned buy-to-let hotspots seen over the previous six months embody Redcar and Cleveland, Darlington, Derby, Gateshead, Newcastle-upon-Tyne, Middlesbrough, County Durham, East Staffordshire, Epping Forest and Leeds.

Nearly two-thirds (65%) of London-based traders making purchases this 12 months are estimated to have purchased a buy-to-let in Britain located outdoors the capital, up from 24% in 2007.

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Aneisha Beveridge, head of analysis at Hamptons, mentioned: “Buy-to-let investment is gradually grinding to a halt in some markets where higher purchase and mortgage costs take their toll.

“However, while new landlord purchases remain well below long-term averages, some investors have been looking further afield for new opportunities.

“One of the main ways landlords are trying to mitigate against higher stamp duty and mortgage costs is by seeking better-yielding and cheaper properties, increasingly in northern England.”

She added: “This may also have a knock-on impact on rents if supply conditions in the South of England worsen, and where tenants’ finances are already most stretched.

“However, investors will still find opportunities in the South of England, particularly if rents continue to rise and house prices pick up pace after nearly a decade of stronger capital growth further north.

“Lower interest rates will also help, not only by lowering mortgage costs, but by reducing rates available on savings accounts, which might make buy-to-let look more appealing.”

The Hamptons lettings index makes use of knowledge from the Connells Group and is predicated on 57,000-plus properties let every year.