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last mo.

UK Buy-to-Let Investments Hit Pre-2007 Lows as Landlords Shift North

Higher taxes, rising costs, and better yields in the North and Midlands drive a geographic shift in rental property investment.

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In the first four months of this year landlords purchased just 10 per cent of all homes sold — the lowest level since 2007
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Overview

  • Buy-to-let purchases accounted for just 10% of UK home sales in early 2025, the lowest level since before the 2007 financial crisis.
  • Nearly 39% of buy-to-let properties purchased in 2025 were located in the North of England or the Midlands, up from 34% in 2022.
  • Landlords are increasingly seeking higher yields, with the North East offering a 9.3% gross rental yield compared to the national average of 7.1%.
  • London-based investors have shifted strategies, with 65% purchasing properties outside the capital, a significant increase from 24% in 2007.
  • Key investment hotspots include Redcar and Cleveland, Darlington, Derby, and Leeds, reflecting a growing focus on affordability and profitability.