Demand for investment property in the North West is far higher than in London and the rest of the UK

June 5, 2025

Buy-to-let property investment is reliable, profitable and achievable for more people than ever before. Lower mortgage rates and strategies such as leveraging make it possible for people from all walks of life to invest in UK buy-to-let property for sale.

Even better, 2025 is the perfect time to invest in property. Property values are growing strongly, and investors are benefitting from the recent interest rate cuts made by the Bank of England. That leaves the important question of where is the best place in the UK to invest in buy-to-let property?

The North has emerged as the centre of the UK’s buy-to-let market – and the number one place for experienced and new investors to buy UK property in 2025. Read on to learn more about what makes Northern locations the best place to invest.

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Demand is highest in the North

New research from Hamptons shows that the Northern regions accounted for 39% of all buy-to-let purchases in the first quarter of 2025. Not only is that an extremely high number relative to the population in this part of the country, but it’s also growing quickly.

That number was just 24% in 2007 and 34% in 2022. If a region is growing in popularity that quickly, it’s normally a very good sign for investors looking to make their money work as hard as possible – and maximise their profits.

Aneisha Beveridge, head of research at Hamptons, said: “While new landlord purchases remain well below long-term averages, some investors have been looking further afield for new opportunities […] by seeking better-yielding and cheaper properties, increasingly in Northern England.”

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Lower entry prices

One of the main reasons the demand for Northern property is so high is that the price of entry is so much lower than in London. The capital is one of the UK’s leading markets traditionally, but the average property price there has reached £546,000 according to the Office for National Statistics (ONS).

The Hamptons survey shows that the average across the South as a whole is still high at more than £292,000. Compared to that, the average price paid by investors in the North and the Midlands is just £150,480 – significantly lower.

Even the busiest Northern markets like Manchester, which are international buy-to-let hotspots, have an average property value of £247,000 according to the ONS. That means you can buy Manchester city centre apartments and get all the benefits of investing without the capital cost that you’d encounter in London.

That makes the Northern regions a simple choice for any investor looking to get the most value for money. It also means that investors with less capital can invest in the North more easily than they could in London or many areas of the South.

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House prices are growing faster in the North

Additionally, the North is leading national house price growth. By choosing the North, you can afford to buy more properties and also see higher levels of growth than you would in London and the rest of the UK.

ONS data shows that the average property value in England went up 5% in the last year. However, a typical home in the North West of England increased in value by 6.8%. Homes in the North East, West Midlands, East Midlands and Yorkshire and the Humber all exceed the national average, too.

In comparison, London saw annual growth of only 3% in the same period. That makes it an easy choice for any investor looking to see where they should put their money next. Buy-to-let investment is a long-term prospect, and your returns will be higher if you buy property in the North of England in 2025.

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Higher rental yields

Investors who buy in the North are also likely to receive higher rental yields than those who choose London and the rest of the UK.

The latest research from Paragon Bank in May 2025 shows that rental yields in the UK are at a 14-year high. Average yields across the UK are now at 7.11%, with several regions enjoying higher growth than that.

The North as a whole is enjoying an average rental yield of 7.94%, with regions including Yorkshire (7.97%) and the North West (7.85%) performing especially strongly, with the West Midlands coming in just behind (7.52%). That makes property in cities like Liverpool, Manchester and Birmingham especially valuable investment opportunities.

If you can buy close to a regeneration masterplan or the waterfront in those cities, then you could potentially earn even higher rental yields and achieve the highest possible returns.

In contrast, rental yields in Greater London (5.78%) lagged far behind the North and the UK as a whole, further explaining why so many investors are choosing to leave the capital and move their money North.

Russell Anderson, Paragon Bank Commercial Director of Mortgages, said: “Our latest lending data highlights how average rental yields have continued to increase from the 13-year high we revealed at the end of last year.

“This is particularly true where landlords employ a strategy of […] investing in areas where property is relatively more affordable but benefits from the strong tenant demand we see all over the UK.”

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How to buy property in the North of England?

Our team of UK buy-to-let experts are in the perfect position to help you build a portfolio of Northern property so you can maximise your returns and income. Our outstanding service is tailored to your unique needs and is informed by quality UK property market insights.

Want to learn more? Get in touch today to book a discovery call and find your next investment!

Demand for investment property in the North West is far higher than in London and the rest of the UK

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