Buy to let investment in England has notably shifted northwards over the past decade, with landlord purchases increasingly concentrated in the Midlands and northern regions. This change follows the introduction of the stamp duty surcharge on second homes, which has altered the geographic landscape of buy to let borrowing.

Shift in Buy to Let Borrowing Patterns

Data analysed by Paragon Bank reveals that in 2015, just before the 3% stamp duty surcharge on second homes was introduced, southern England accounted for nearly 56% of all mortgaged buy to let purchases. In contrast, the Midlands and northern regions combined represented just under 35% of such purchases.

By 2025, this trend had reversed. The Midlands and northern regions together accounted for just over half of all buy to let purchases, while the southern regions’ share fell to 38%. This represents a significant rebalancing of the buy to let market within England over a ten-year period.

Defining Moment for the Buy to Let Market

Louisa Sedgwick, Managing Director of Mortgages at Paragon, described the stamp duty surcharge as a “defining moment for the buy to let market.” She explained that the data shows a clear and lasting shift, with the Midlands and northern regions now holding a greater share of landlord purchases than the south.

Ms Sedgwick added that landlords have become more commercially focused, with areas such as the North West, Yorkshire, and the North transitioning from alternative locations to core buy to let markets. Meanwhile, higher-priced southern regions have seen their relative importance decline.

Regional Changes in Buy to Let Investment

Further analysis highlights specific regional changes. The North West increased its share of buy to let purchases from 9% in 2015 to almost 14% in 2025. Yorkshire’s share rose from 7% to just over 10%, while the North East climbed from 4% to 7%. The West Midlands also saw gains, rising from 8.19% to 10.6%, and the East Midlands edged up from 7.45% to 8.79%.

Conversely, southern regions experienced declines. Greater London’s share of purchases dropped from 19.03% in 2015 to 12.28% in 2025. The South East saw a steeper fall from 24.09% to 15.91%, and the South West decreased from 8.66% to 6.44%.

Potential Challenges for Renters in the South

Ms Sedgwick cautioned that the long-term decline in buy to let investment in London and the South East could create difficulties for future renters. She warned that this trend may worsen the supply-demand imbalance that has affected these markets in recent years.

With projected population growth expected to continue, there will be a need for increased rental supply in these economically important and transient markets. Without sufficient investment, tenants could face rising rental inflation and fewer housing options.

What this means for landlords

The geographic shift in buy to let investment suggests that landlords are seeking more commercially viable opportunities outside the traditionally dominant southern regions. This may reflect a strategic response to higher property prices and additional tax burdens in the South, particularly London.

For landlords, this trend highlights the importance of considering emerging markets in the Midlands and North, where rental yields and demand may be improving. However, it also signals potential challenges in southern markets, where reduced investment could impact tenant choice and rental affordability in the longer term.

Source: Based on reporting from Property118

TLA Training Academy

The Landlord Association has launched its new Training Academy for UK landlords, providing structured guidance, compliance education, and practical knowledge to support landlords at every stage. Members can now complete the programme and become TLA Certified Landlords at no additional cost as part of their membership.

Landlords can explore the Academy here: https://landlordassociation.org.uk/tla-academy/

Those looking to join and access the full training and certification can register here: https://landlordassociation.org.uk/landlord-association-membership-uk/

TLA update

The Landlord Association is currently onboarding new service providers into its Trusted Partner Hub, a new initiative designed to support landlords, tenants, letting agents, and property managers with vetted, high-quality services. As one of the fastest growing landlord associations in the UK, TLA offers partners direct access to an engaged and active member base at the point of need. Service providers across legal, maintenance, insurance, finance, mortgages, tenant screening, and property services can register their interest here: https://landlordassociation.org.uk/become-a-tla-service-partner/