Why the North Is Leading the Property Growth Race
Introduction
The question on many investors’ minds: Is buy-to-let dead in 2025? With sluggish property price growth in London and rising living costs, it’s easy to assume the market has peaked. But the truth is far more nuanced — and full of opportunity for savvy investors willing to look beyond the capital.
London’s Growth Story: A Market Slowing Down
Since 2016, the average property price in London has only increased from around £490,000 to £566,000 — a growth of just about 16% over nearly a decade. When you factor in inflation, this growth is minimal at best, making affordability a huge issue. London remains a global hub, propping up the market despite these challenges, but the average buyer increasingly struggles to enter.
The Northern Powerhouses: Manchester and Beyond
Contrast this with Manchester, where prices have surged from approximately £140,000 in 2016 to £250,000 today. That’s a massive 70% increase, offering investors significantly better returns on investment (ROI). Data from the Land Registry confirms a consistent pattern: the North of England has outperformed the South in capital growth since 2016.
Why Is the North Outperforming?
The strong performance in northern cities like Manchester, Birmingham, Leeds, Nottingham, and Liverpool comes down to:
- Affordability: Lower entry prices attract tenants and buyers. 💰
- Employment Opportunities: Growing industries and corporate investments create demand. 👔📈
- Institutional Investment: Big players are backing regeneration projects and new developments, driving up value and rental demand. 🏗️🏢
Unlocking Equity & Long-Term Growth
With these cities showing sustained capital growth, investors can expect to release equity every 5 years, supporting portfolio expansion or reinvestment. Demand continues to outpace supply, underpinning healthy rental yields and increasing property values.
How to Approach Buy to Let in 2025
Buy to let is far from dead — but it requires a smart, data-driven approach:
- Focus on Fundamentals: Look for locations with strong employment, transport links, and local investment. 🚉🏭
- Use Data Tools: Platforms like Zoopla and Land Registry help track historical price trends and compare areas objectively. 📱🔍
- Diversify Location: Don’t rely solely on London; consider emerging northern hotspots. 🌍
- Stay Informed: Institutional investment and regeneration projects can signal future growth areas. 📢📊
Conclusion
Buy-to-let remains a viable and profitable investment strategy in 2025 — especially if you embrace the shifting geography of growth in the UK property market. The North’s strong performance offers incredible opportunities for those willing to act decisively and strategically.
If you want expert guidance to identify the best buy-to-let deals in growth areas, get in touch. Let’s build your portfolio with confidence and data-backed insight.
If you would like support finding viable Buy-To-Let options, then feel free to have a free, non-committal call with one of the team: https://fraterpropertypartners.com/contact/
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