A growing number of buy-to-let (BTL) investors are turning northward, as new data from Hamptons reveals a striking geographical pivot in the UK rental property market. In 2025, an eye-catching 39% of fresh landlord acquisitions occurred in the Midlands and the North of England—a marked escalation from 34% in 2022 and a far cry from just 24% back in 2007.

Why the northward drift? The answer lies in a potent blend of lower property prices and stronger rental yields, which together are cushioning the blow of steeper Stamp Duty rates and climbing mortgage expenses. Hamptons’ Lettings Index attributes much of this shift to economic pragmatism—investors seeking more bang for their buck.

That said, the broader BTL landscape has dimmed slightly. In the opening four months of 2025, landlords were behind just 10% of all home sales across Great Britain, a subtle dip from 11% during the same period last year. The trend is part of a larger contraction: since 2015, landlord purchases have waned in every UK region save one—the North East.

In fact, the North East stands out. Here, landlords accounted for a robust 28% of home sales this year, bucking national declines. In contrast, Wales and London have endured the most pronounced declines in BTL activity since 2015.

Among local hotspots, Redcar and Cleveland claimed the top spot for BTL acquisition rates post-Stamp Duty surcharge, with landlords snapping up half the homes sold there. Remarkably, nine of the ten leading areas for BTL purchases are now located in the Midlands or the North—emphatically underlining the scale of this regional transformation.

Price disparities also play a major role in investor decisions. The average BTL buyer in the Midlands or North paid £150,480 for a property—nearly half the £292,240 shelled out by Southern landlords. That price gap translated into an average Stamp Duty saving of £11,190 for Northern investors.

Landlord market share has withered elsewhere. In Wales, landlords accounted for just 6% of purchases—down from 16%. In London, their share halved to 8% from 16%.

Yields, however, tell a different story. The North East, East Midlands, and West Midlands all reported rental yields outpacing the national average. Eight out of the ten highest-yielding areas delivered gross returns above 7.1%, with County Durham taking the lead at a generous 10.2%.

In a further sign of this trend, London-based landlords are increasingly buying beyond the capital’s boundaries. A significant 65% of them bought properties outside London this year, compared to just 41% ten years ago. The North has become a favoured destination—18% of London investors acquired properties there, a jump from just 5% in 2015.

Overall, the pursuit of stronger returns appears to be paying off. A record 23% of new BTL purchases achieved yields in the double digits, up from 17% the previous year. To put that in perspective: a single percentage point increase in yield on a typical £198,550 BTL purchase adds £1,985 to annual rental income.

Regionally, the differences are stark. In the North East, an average BTL property yields £18,400 in annual rent—£7,010 more than its London counterpart. Still, long-term capital appreciation remains more robust in the capital, which continues to lure investors with its promise of growth.

Elsewhere, rental inflation shows signs of cooling. According to Hamptons, only 45% of landlords increased rents on renewals last month—down from 50% the year before. The average renewed rent stood at £1,257, a 3.7% annual rise. For new tenancies, the average rent nudged up 1.2% to £1,360. Tenants staying put saved an average of £103 a month compared to newcomers.

In London, rents on new lets even slipped 1.4% year-on-year. Just 23% of landlords there raised rents on renewals in April, down from 37% twelve months prior.

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

She continued: “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.”

Her projections extend further: “Based on current trends, 2033 will mark the point at which the bulk of buy-to-let purchases are in the Midlands and North of England, rather than the South.”

That could have fiscal repercussions: “However, this shift could cost the Treasury £161m or a 12% annual fall in revenue due to investors purchasing cheaper properties that come with lower stamp duty bills. 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.”

Still, Beveridge struck a note of optimism for the South: “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.”