Manchester Leads the Pack for Buy-to-Let Investors in 2025

Why Manchester Tops the List in 2025

Manchester’s property market shows no signs of slowing down. With average house price growth of 6.5%, landlords are enjoying strong capital appreciation alongside monthly rental income. And with 32% of the city’s population renting privately (compared to the national average of 23%), tenant demand remains solid.

For buy-to-let investors looking to build long-term wealth, Manchester presents a rare combination of high demand, robust yields, and capital growth potential.

Surprise Performer: Wigan Breaks into the Top 5

One of the most notable changes in 2025’s tracker is Wigan’s dramatic rise—climbing from 25th position last year to 4th place. Its exceptionally low vacancy rate (just 0.6%) and annual price growth of 5.4% have made it a standout performer for investors seeking low-risk, steady returns.

With increasing commuter demand and accessible property prices, Wigan is becoming a hotspot for yield-focused investors.

London Slips Down the Rankings

Despite commanding average rents of £800 per room, London has fallen to 32nd place in 2025, down from 5th in 2023. The capital’s rental yields have dropped to 4%, while house price growth remains modest at just 3%.

For investors prioritising returns over prestige, Northern and Midlands cities are now offering significantly better value than the capital.

Buy-to-Let Market Snapshot: 2025 Highlights

Despite economic pressures, the buy-to-let sector continues to demonstrate resilience:

• 📊 Average UK rent per room has increased to £518, up from £455 in 2023
• 💰 Rental yields have risen from 5.5% to 6.9% over the last 12 months
• 💼 Landlord confidence is up, with only 31% considering leaving the market (compared to 48% last year)
• 📈 58% of landlords have seen their property values increase in the past year

A Note on Wales: Still Playing Catch-Up

While cities like Newport and Swansea remain near the bottom of the rankings due to weaker tenant demand and slower capital growth, there’s still movement. Notably, Swansea’s rental yield has climbed from 4.7% in 2023 to 6.3% in 2025, hinting at potential for longer-term investors.

Final Thoughts from Regents Property

With tenant demand high and yields rising, the UK buy-to-let market in 2025 continues to offer excellent opportunities—especially for investors focusing on Manchester, Wigan, and Glasgow.

By staying ahead of evolving regulations and focusing on high-demand locations, savvy investors can still achieve strong and sustainable returns in today's market.