The North of England and the Midlands have dominated buy-to-let in England in recent years, but there are signs that yields are increasing in the South, which is, in turn, attracting more investors.
Our analysis looked at the top 20 places where most homes have been bought by investors so far this year, as well as the places where yields have risen. Perhaps unsurprisingly, the two are linked.
Most investor hotspots are still in the Midlands or the North – they account for 14 of the top 20 local authorities for investor purchases, with Oldham, in Greater Manchester, taking the crown. So far this year, landlord purchases have accounted for half of all sales in Oldham, with investors paying an average of £98,100 for a buy-to-let property.
However, a growing number of investor hotspots are in southern England, where rents have generally risen faster than house prices. This year six of the top 20 are in southern England – they are Barking and Dagenham and Newham in London; Sedgemoor and Plymouth in the South West; and Portsmouth and Southampton in the South East.
Last year, only two Southern locations made the top 20 (Barking and Dagenham and Southampton), while three made the cut in 2019 (Barking and Dagenham, Plymouth and Southampton). Barking and Dagenham is the southern buy-to-let hotspot – 31% of properties sold in the local authority this year were bought by landlords, who paid an average price of £299,000.