Nearly half of all new Buy-To-Let purchases in the first half of the year were concentrated in the Midlands and North of England, according to fresh analysis from Paragon Bank. The East and West Midlands, North West, North East, and Yorkshire and the Humber collectively accounted for 47.4% of mortgaged buy-to-let acquisitions which is up from 46% last year and a significant rise from just 33.5% a decade ago.

In contrast, London and the South East have seen their share of landlord purchases fall sharply, dropping from 41.6% in 2015 to just 27.6% in 2025.

The bank attributes the regional shift to more affordable property prices in the Midlands and North, which offer landlords stronger rental yields and lower entry costs—making these areas increasingly attractive for portfolio expansion.

The shift in landlord purchasing patterns gained momentum following the introduction of the stamp duty surcharge on additional properties in April 2016, which reshaped investment strategies across the sector.

In the first half of this year, the South East (excluding London) emerged as the leading region for buy-to-let acquisitions, accounting for 15.4% of all landlord purchases. The North West followed closely behind, capturing 12.9% of the market.

The managing director for mortgages Louisa Sedgwick says: “The trend towards investment across Midlands and northern markets increased following the introduction of the stamp duty surcharge nearly a decade ago.

“These markets are appealing to landlords for several reasons, including the availability of appropriate stock, strong tenant demand, healthy local economies, lower purchase costs and generally stronger yields.”

She continues: “The South East and London are still the UK’s most important rental markets, however, given the transient nature of these markets and their economic importance. 

“Stifled new supply against heightened tenant demand has driven rental inflation. 

“Without an increase in new stock across the South East, and in particular London, tenant choice is diminished."