Buy-to-Let Boom Moves North: London Loses Its Edge.

Website

📉 London Rents Slide as Buy-to-Let Investors Head North

The UK rental market is showing signs of a shift—and London is leading the way, but not in the direction landlords might hope. According to the latest figures from Hamptons, average rents on new tenancies in the capital dropped by 2.7% over the past year, equivalent to a £65 monthly dip. That brings the average rent for a new let in London to £2,332 as of September.

This marks a sharp contrast to the rental landscape just a year ago, when annual growth was running at 4.2%. Nationally, the picture is more stable: average rents for newly-let properties across Britain fell by just 0.3%, from £1,402 to £1,398 per month.

🔁 Renewals Tell a Different Story

While new lets are softening, tenants renewing existing contracts are facing steeper costs. Renewal rents rose by 4.6% year-on-year, pushing the average to £1,307 per month—the first time this figure has crossed the £1,300 threshold. This divergence suggests landlords are holding firm on pricing for existing tenants, even as new listings become more competitive.

🧭 North East Emerges as Buy-to-Let Hotspot

As London cools, investor interest is heating up in the North East. The region has become a magnet for buy-to-let landlords, thanks to stronger rental yields and lower upfront costs like stamp duty. In 2025, nearly 28.4% of all homes sold in the North East were snapped up by landlords—more than triple the share seen in London (8%).

Scotland and Wales saw even lower levels of landlord activity, at 7.1% and 6.9% respectively, reinforcing the North East’s growing appeal for yield-focused investors.

💡 What This Means for Investors

The data points to a clear trend: while London remains a high-value market, its rental returns are under pressure. Meanwhile, regions like the North East offer more attractive entry points and stronger income potential. For landlords looking to expand or rebalance their portfolios, the north may offer the best blend of affordability and return.

📞 Ready to explore your next investment opportunity?

If you would like more information, or think property investment is something you are interested in visit our website (link located below the image) or call us directly on 01279 295590 to speak with an expert today or send us an email info@cityandcountrywide.com.

#PropertyInvestment #BuyToLet #UKHousingMarket #RentalYields #RealEstateUK #InvestSmart #NorthernProperty #PassiveIncome #RentalReturns #HousingTrends #InvestInProperty