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Growing Investment Trends in the Midlands and North
In a notable shift in property purchasing trends, the Midlands and the North of England drove nearly half of all new buy-to-let purchases in the first half of 2025, according to data from Paragon. This significant statistic illustrates the growing appeal of these regions, which together accounted for a remarkable 47.4% of new purchases by volume. This figure marks an increase from 46% just last year and contrasts starkly against the 33.5% share recorded a decade ago.
Landlords are increasingly captivated by the promise of lower property prices and higher rental yields in these areas. Regions such as the East and West Midlands, North West, North East, and Yorkshire and Humber have benefitted from favorable economic conditions that encourage investment. A major factor influencing this trend is the introduction of the stamp duty surcharge in April 2016, which has made traditional hotspots in London and the South East less favorable for new buyers.
Market Dynamics: Benefits for Investors
Louisa Sedgwick, Paragon Bank’s managing director of mortgages, highlighted that the investment focus on the Midlands and Northern markets is buoyed by several positive local attributes. Specifically, these areas offer:
- Availability of suitable rental stock
- Strong tenant demand
- Healthy local economies with lower acquisition costs
- Stronger yields compared to southern counterparts
The shift away from London and the South East is stark. In 2015, these areas combined captured 41.6% of all purchases; today, that percentage has markedly dropped to just 27.6%.
A Glimpse Ahead: What to Expect
This increasing trend in the Midlands and North is expected to continue, driven in part by the economic conditions and demographics that favor rental growth in these regions. For financial institutions and service providers, understanding these shifts is critical. It opens up opportunities for strategic investments and tailored financial products.
As the market evolves, those tailored to meet the needs of landlords investing in these burgeoning areas stand to gain significantly from this ongoing transformation.
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