London reclaims BTL crown as Northern hotspots surge

London reclaims BTL crown as Northern hotspots surge

0:06 AM, 23rd January 2025, About 3 hours ago

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London has emerged as the dominant force in the UK’s buy to let market in 2024, experiencing a 13% increase in new landlords, data reveals.

The findings from Simply Business show this follows a period of slower growth in 2023, with the capital’s strong tenant demand and diverse property options now driving the resurgence.

Its analysis of landlord insurance policyholders show that Northern cities also had significant growth, with Birmingham, Leicester, Leeds, Manchester and Nottingham all recording double-digit increases in new BTL landlord numbers.

Glasgow, which topped the chart in 2022-2023, experienced a more modest 7% rise in 2024.

‘Game-changer for UK landlords’

The firm’s chief executive, Julie Fisher, said: “2025 will be a game-changer for UK landlords, with new regulations and rising costs reshaping the market.

“It’s incredibly telling that we’re starting to hear landlords talk about availability of tradespeople in the context of their investment decisions – driven in large part by the new minimum Energy Performance Certificate (EPC) regulations.

“We know from our research that half of landlords need to make improvements to reach an EPC rating of C, and over a third (34%) report they will need to spend up to £10,000 to comply with the rules.”

She added: “Though challenges remain, the importance and resilience of landlords – and the market – should not be underestimated.

“Rental demand remains high as people seek flexible housing to suit their studies and work, and landlords that are able to follow and adapt to the changes effectively can absolutely still find opportunities for steady rental income and capital growth, with a vital role to play in the UK housing market.”

Challenges facing landlords this year

HMOs are emerging as an increasingly attractive investment option, particularly in cities with high student and young professional populations.

The locations include London, Birmingham, Bristol, Manchester, Leeds, Cardiff, Nottingham, Edinburgh, Liverpool and Coventry.

Last year’s Simply Business Landlord Report highlights some of the big challenges facing landlords this year, including changing legislation and soaring costs.

Nearly three-quarters (71%) of landlords say the government will have a negative impact on the buy to let market, the report revealed.


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