Why more buyers are turning their backs on London and looking North
The shift in the UK housing market continues, according to Rightmove’s latest House Price Index data.
Despite national declines in average asking prices, cities in the North of England and parts of Wales are bucking the trend with continued growth. This shift suggests increasing investor interest outside London, as buyers seek more affordable and promising opportunities beyond the capital.
Caroline Marshall-Roberts, CEO and Founder of BuyAssociation, revealed what this means for landlords, homebuyers, and those looking to make the most of the current market, including some of the areas offering the strongest opportunities.
What trends stand out from the report, and what do these mean for investors?
“We’re seeing a clear regional rebalancing. London has long dominated the property market, but for the past few years, buyers and investors have been turning their attention to regions offering stronger value for money.
“Cities like Manchester, Leeds, and Sheffield are solid investment hotspots. They offer greater affordability, often higher rental yields, and growing tenant demand.
“This is something investors should be paying close attention to, especially if they’re looking to diversify their portfolio and tap into markets with long-term growth potential.”
What’s driving the trend?
According to Caroline, there are a few key factors behind the North’s continued growth:
“Affordability is a major driver. In areas like Yorkshire and the North West, you can still find high-quality properties at far more accessible prices, which is almost impossible in many parts of the South.
“Stamp Duty changes have also played a role. Because property prices are lower in the North, many investors end up paying significantly less, or even no stamp duty at all. This serves as a big win for anyone focused on ensuring their rental returns are as high as possible.
“And importantly, demand remains strong. Cities such as Manchester, Leeds, and Liverpool are thriving with students, young professionals, and families, all of whom need good quality rental homes.
“This consistent demand helps drive capital growth and gives landlords confidence in long-term returns.”
High-growth cities to watch
Curious about which northern areas should be on your investment radar? Caroline shared her top picks:
Manchester
“Manchester is largely considered the London of the North, and for very good reason. It not only has a thriving employment sector, but it’s also highly developed and well-connected, attracting a wide variety of renters from professionals to students.
“It combines impressive capital growth potential with strong, consistent rental yields, particularly in high-demand areas like Salford Quays, Ancoats, and The Green Quarter.
“For investors, the key is to focus on well-located developments that align with the city’s regeneration and tenant demand.
“Pay close attention to transport links, local amenities, and business districts like Spinningfields. These are especially worth targeting, as they tend to offer long-term growth and high occupancy rates.”
Leeds
“Leeds has consistently been one of the North’s most reliable investment locations. It has a strong financial sector, a large student population, and is affordable to live in, driving steady demand for rental properties.
“Flats in the city centre, especially around South Bank, Holbeck, and the Civic Quarter, are great to invest in. When conducting your research, target areas with nearby transport links, like Leeds train station, to maximise tenant appeal and ensure long-term occupancy.”
Sheffield
“Sheffield is often overlooked, but it shouldn’t be. One of the most influential strings to the city’s bow is its universities.
“The University of Sheffield, in particular, ranks in the top 100 universities in the world and 12th in the UK.
“This, combined with the city’s growing workforce and affordability, means tenant demand is steady and returns are strong.
“It’s a great place to start for new investors. Consider focusing on properties near tram routes, the universities, or key regeneration zones.”
Birmingham
“Birmingham’s regeneration has been huge. Projects like HS2 and the Big City Plan are reshaping the city and taking rental demand to new heights.”
“Properties near Curzon Street station or key employment hubs like Brindleyplace are especially appealing. They’re well-connected and offer long-term growth potential.”
Why now? The window of opportunity
“As the South becomes oversaturated and rental yields continue to tighten, more investors are turning their attention to the North, where the potential is still largely untapped.
“This trend is only just beginning to gain momentum, which makes now an ideal time to act.
”With lower property prices and strong, consistent demand, the North presents a valuable opportunity for investors to get in early and benefit from long-term growth.”
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