While recent research by a bank suggests investor confidence in London is rising, one investment platform insists the North’s affordability and consistent returns continue to drive real investor demand.
Caroline Marshall-Roberts, chief executive of BuyAssociation, comments: “The renewed interest in London is notable; however, the North hasn’t stopped performing. Cities like Manchester, Leeds, and Sheffield still offer exceptional affordability, strong tenant demand, and rental yields that outperform many parts of the South. In fact, for investors looking to diversify and balance risk, the North remains one of the most reliable parts of the UK market.”
Why the North and Midlands Remain Front-Runners
Despite London’s global appeal, many investors continue to find stronger opportunities elsewhere. In addition to having robust rental markets and high tenant demand, cities like Manchester, Leeds, Sheffield, and Birmingham also have much lower entry costs.
Affordability remains a huge driver. Investors can acquire high-quality property in cities like Sheffield or Leeds for a fraction of the price in London, and often see much better rental yields in return.
This cost-effectiveness is a huge advantage, particularly for investors looking to scale their portfolios or reduce upfront costs like stamp duty.
Beyond price, the North and Midlands benefit from steady and sustainable demand. These regions are home to large student populations, thriving job markets and major regeneration projects, all of which feed into reliable and long-term rental prospects.
This stability is key for landlords who want consistent returns and lower vacancy risk.
Regional cities are also becoming more and more regarded as a wiser and more reliable option for investors wishing to diversify their holdings. London may be more familiar, but it also has higher prices, lower average yields, and more market volatility.
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? Marshall-Roberts says that 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.”
Please visit:
Our Sponsor
