Why More First-Time Landlords Are Choosing to Invest in the North

The North of England is fast becoming the destination of choice for first-time landlords—driven by attractive property prices, strong tenant demand, and some of the highest rental yields in the country.

According to Fleet Mortgages’ Q4 2024 Buy-to-Let Barometer, 25% of all landlord mortgage applications in the North East came from individuals new to the market. Yorkshire & Humberside followed closely behind at 13%, compared with just 4% in the South West.

What’s Fueling the Shift to the North?

Put simply, the numbers stack up. Property prices in northern regions are more accessible, rental income is strong, and mortgage borrowing requirements are notably lower. The North East stands out with the most affordable rental stock across the UK, where average monthly rents are just £706. Moreover, landlords in the area borrow an average of just £77,000 per property—making it an ideal entry point for first-time investors.

High Yields Are Leading the Way

Rental yield continues to be a key driver for investors—and the North delivers.

• North East: Average yields of 9.3%
• Yorkshire & Humberside: 8.6%
• North West: 8.3%

By comparison, southern regions lag behind due to higher property prices and larger borrowing requirements:

• Greater London: 5.8%
• East Anglia: 6.3%
• South East: 6.4%

This clear yield gap highlights why many investors are turning their attention away from the South in favour of northern opportunities.

Rise in Limited Company Structures

Another trend gaining momentum is the increased use of limited companies for buy-to-let investments. In Yorkshire & Humberside, 91% of all applications were made via a company structure, compared with only 60% in the South West. This reflects a broader shift in strategy as landlords seek to maximise tax efficiency and streamline portfolio management.

Are Landlords Still Buying in 2025?

Despite media suggestions of landlord hesitation, the data tells a different story. In regions such as the North East, East Anglia, and Greater London, purchase activity is nearly on par with remortgaging. In fact, in Yorkshire & Humberside, new purchases account for 60% of all applications—indicating strong confidence in long-term rental market performance.

Fleet Mortgages’ Chief Commercial Officer, Steve Cox, notes that while ownership costs and stamp duty surcharges have increased, landlords remain committed to expanding their portfolios. The fundamentals of the private rental sector (PRS)—including tenant demand and yield performance—continue to underpin its appeal.

What Does This Mean for the Future?

Rental demand remains high, while supply is limited. As a result, property investors are focusing on high-yield regions with long-term growth potential. For those entering the buy-to-let market for the first time, the North represents both an affordable starting point and a strategic move towards consistent income generation.

Thinking About Your First Investment?

Whether you're a first-time landlord or looking to expand your existing portfolio, Regents Property can guide you through the process. Explore high-yield opportunities in key northern hotspots and start building your property portfolio with confidence.