First-Time Landlords Reach 25% in Northern England

More first-time landlords are turning to northern England because of cheaper property prices and better rental income.

Recent industry data shows 25% of Buy-to-Let mortgage applications in the North East come from new landlords, with Yorkshire and Humberside close behind at 13%. The trend suggests a growing interest in the rental market despite higher interest rates.

Northern Towns Beckon New Investors

Data shows that towns and cities in northern England are becoming popular among new landlords. Experts say the idea of the Buy-to-Let market being driven only by remortgages isn’t entirely true.

Rather, they say a rise in applications from first-time landlords and a steady balance between property purchases and remortgages is driving the trend, showing strong interest in buying properties.

Areas in northern England, where property prices are lower and rental returns are high, are more attractive to new landlords.

Key Figures and Trends

• The North East boasts the most affordable rental properties with an average rent of £706 per month.
• Landlords in the region typically borrow the lowest mortgage amounts, averaging £77,000.
• Applications from first-time landlords rose nationally from 10% in Q3 2024 to 11% in Q4.
• Landlords with bigger portfolios (six to 14 properties) boosted their share of applications from 30% to 34%.

While northern England is attracting the most interest from new landlords, the South West is falling behind with only 4% of applications coming from first-time landlords. However, the region remains active among landlords who already have established property portfolios.

Why the North Appeals to First-Time Landlords

For new landlords, the North stands out with its mix of affordability and profitability. Lower property prices mean smaller mortgages while higher rental yields promise steady returns.

Data also highlights the dominance of limited companies in some areas like Yorkshire and Humberside, where 91% of Buy-to-Let applications came from corporate landlords.

That is understandable. That setup offers tax advantages, making it a preferred option for those expanding their property portfolios.

Regional Differences Highlight Opportunities

A closer look at regional trends shows wide variation.

• Yorkshire and Humberside - Purchases outpaced remortgages, with a 60% to 40% split.
• North East and East Anglia - Purchases and remortgages were evenly balanced.
• Wales - Remortgages dominated, accounting for 71% of applications.

These contrasts show landlords are adapting their strategies based on local market conditions.

Conclusion

Northern England’s property market offers good opportunities for new landlords. The region’s lower property prices and strong rental demand make it an attractive place to start in the Buy-to-Let market.

Where there are opportunities, experienced and new landlords are eager to take them. For northern England, this means new investments are flowing in, helping towns and cities that were once ignored grow.

Whether the trajectory of the trend continues will depend on the overall economy. But for now northern England is a compelling place for anyone looking to become a landlord.