Buy-to-let investors are increasingly looking north, drawn by higher yields and lower purchase prices, according to new research. A recent study by Hamptons reveals a significant shift in investment patterns, with northern England and the Midlands becoming prime targets for landlords.
Nearly 39% of buy-to-let properties purchased in Britain during the first four months of 2025 were located in these regions, a marked increase from 24% in 2007 and 34% in 2022. This northward migration is attributed to several factors, including the impact of stamp duty costs and lower rental yields in southern England.
The average price paid by investors in the Midlands and North this year was £150,480, significantly less than the £292,240 average paid by landlords in the South. This substantial price difference, coupled with potentially higher rental yields, makes the North and Midlands an increasingly attractive proposition for buy-to-let investors seeking better returns. The trend suggests a growing disparity in the UK property market, with investment increasingly focused on areas offering greater affordability and potential profitability.
Hamptons said buy-to-let hotspots seen over the past six months include 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 investors making purchases this year are estimated to have bought a buy-to-let in Britain situated outside the capital, up from 24% in 2007.
Aneisha Beveridge, head of research at Hamptons, said: “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 uses data from the Connells Group and is based on 57,000-plus homes let each year.
