Northern England sees a surge in first-time landlords

First-time landlords are increasingly investing in northern England, capitalising on lower property prices and higher rental yields.

That’s according to Fleet Mortgages’ latest Buy-to-Let Barometer which reveals that 25% of mortgage applications in the North East came from first-time landlords.

Yorkshire and Humberside came next at 13%.

The news follows a survey by Simply Business which revealed that northern towns and cities are increasingly attracting new landlords.

Landlords are looking to buy

Fleet’s chief commercial officer, Steve Cox, said: “There has been an underlying narrative played out over the last year or so, that the buy to let sector is functioning purely on the remortgage business of existing landlords, and there is little appetite from new or seasoned landlords to purchase more homes to rent out.

“Our latest rental barometer, particularly the growth in first-time landlord applications but also the much more even spread of purchase versus remortgage business, seems to indicate this is not truly the case, and instead, where the opportunity arises, landlords are very much looking to buy.”

He added: “This is clearly more the case in certain regions of the country, and it’s not surprising that where properties have lower values, but also where yield is very strong, we are seeing more purchase business from those with significant portfolios or those who are just starting on their landlord journey.”

First-time landlord applications

Fleet also found that just 4% of applications in the South West were from new landlords – but it’s where most applicants already owned multiple properties.

Across England and Wales, applications from landlords with six to 14 properties rose from 30% in Q3 2024 to 34% in Q4.

The proportion of first-time landlord applications increased from 10% to 11%.

Fleet says the higher number of first-time landlords in the North is down to lower property prices and cheaper rents.

It says the North East boasts the most affordable rental stock with an average monthly rent of £706.

Landlords in this region also borrow the lowest loan amounts, averaging £77,000 per mortgage.

Landlords borrowing through limited companies

The barometer also highlights regional differences, including the number of landlords borrowing through limited companies.

In Yorkshire and Humberside, 91% of applications were from limited company landlords, compared to 60% in the South West.

The data also shows an even split between purchase and remortgage applications in regions like the North East, East Anglia and Greater London.

In Yorkshire and Humberside, purchase applications exceeded remortgages at 60% to 40%.

Conversely, in Wales, 71% of applications were for remortgages.

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