Roger Morris, Group Distribution Director at Chetwood Bank for ModaMortgages and CHL Mortgages
Buy to let is often discussed as though it operates as a single national market. In reality, outcomes vary sharply by region. Landlord demand, rental performance, pricing and borrowing behaviour differ widely across the UK, and those differences are becoming more pronounced as we move through 2026.
Recent data underlines the point. Zoopla’s research¹ shows that while around half of UK homes increased in value during 2025, growth was heavily concentrated in specific regions. Others saw little or no movement. For landlords and brokers, understanding these regional dynamics is now essential rather than optional.
Many of today’s strongest opportunities lie outside traditional investor hotspots². Wales delivered average yields of 6.5% last year, while the North West achieved 6.9%. The North East continues to lead the country, producing average yields of 7.9%. Lower property prices in these regions ease borrowing pressures, allowing investors to achieve healthier cashflow without stretching affordability.
Savills’ research³ supports this view, highlighting that areas with more accessible housing stock are better placed for steady growth while interest rates remain elevated. Even under the same national conditions, some markets offer a far stronger balance between income, appreciation and risk.
By contrast, higher-priced regions remain more exposed. London and parts of the South East have underperformed as elevated mortgage rates weigh on affordability. Local economic strength also matters more than ever. Cambridge’s thriving tech and biotech sectors have fuelled rental demand and price growth⁴, while nearby towns without comparable drivers have lagged behind.
Looking ahead, success in 2026 will depend on aligning strategy with genuine regional conditions. Prioritising affordability and yield can bring stability, while carefully chosen opportunities still exist in softer markets. With tighter affordability tests and more complex lending structures, brokers who understand specialist lending will play a vital role in helping landlords secure sustainable outcomes.
Sources
¹ Zoopla: Half of UK Homes Increased in Value Over 2025
² Zoopla: Best Buy-to-Let Locations in the UK
³ Savills Research: UK Housing Market Analysis
⁴ RAH: How Tech and Science Are Shaping Cambridge’s Housing Market
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