It’s recently been reported that portfolio landlords have been focusing their investment efforts in towns and cities in the Midlands and North of England.
According to analysis by Paragon Bank, Manchester, Birmingham, Durham and Nottingham take the top spots, while Brighton & Hove is the only southern location to scrape into the top 10.
This isn’t surprising, given that portfolio landlords tend to have HMOs and other student lets making up at least part and all the cities above have a significant student population. In addition, these regions have cheaper prices, so landlords are able to make their capital go further, and yields tend to be higher than in the more expensive southern parts of England.
Another possible reason for this increase in investment further north is the impact of the 3% higher rate stamp duty that applies to additional property purchases.
Looking at all buy-to-let investments made in a year, Paragon’s research showed that the proportion of rental homes bought in the South fell from 52% in 2015 to just 35% in 2023.
One of the most common questions we get from landlords and new investors is: “Where’s the best place to buy?”. And with the media frequently publishing articles about the latest ‘hotspots’ (which can change from one season to the next!), it’s easy to believe that the best deals are only to be found in certain, very specific locations.
In terms of good capital growth, areas that are experiencing regeneration and benefitting from new investment in infrastructure and business might perform better than more established locations for a few years. But these ‘up and coming’ areas often have lower rents because they’re not yet considered desirable, so they won’t necessarily fit every landlord’s financial goals.
The reality is that there are good deals to be found in almost every town and city, and if you’re looking to make a solid 15-year plus investment, you don’t necessarily need to chase trends up and down the country.
The fundamentals of what makes a successful buy-to-let remain the same, and these are the three key questions you need to ask before choosing a property to buy:
If you’d like to discuss your investment objectives and find out about properties in your area that could be a good match, just get in touch with your local branch - our team of experts will be very happy to help.
Looking for advice?
If you're looking to let or sell your property, we can help. Get in touch with your local branch or book in for a property valuation.
Contact Us
Got a question, general enquiry or something else?
You may also like
Since we started in 1818 we have grown and joined one of the UK’s largest property groups, we can save you time and money by offering a range of services and expertise under one roof.
Portico knows the London property market.
GET AN INSTANT PROPERTY VALUATION