London may be the UK’s property powerhouse, but when it comes to rental yields, it’s no longer the only game in town. Across the North and Midlands, landlords are discovering that looking beyond the capital can deliver stronger returns, lower upfront costs, and long-term growth.
If you’re thinking of expanding your portfolio, it might be time to widen your search.
Speak to our lettings experts today
Northern regions offer some of the UK’s best yields
Recent data highlights how strong the rental market is outside London:
- Redcar & Cleveland: gross yields of 9.8%
- North East: average yields of 9.5%
- North West: average yields of 8.9%
In comparison, average yields in London are lower, often hovering between 4% and 5%. For landlords focused on income rather than capital appreciation, that’s a clear reason to explore new areas.
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Lower purchase prices, better returns
One of the main advantages of buying in the North or Midlands is affordability. Properties cost significantly less than in London, which means a smaller initial investment and the chance to spread risk across multiple properties rather than putting everything into one.
And with tenant demand growing in many of these towns and cities — thanks to new jobs, regeneration, and better transport links — landlords can expect steady occupancy rates and reliable income.
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Tenant demand is rising outside the capital
It’s not just about yields. The North and Midlands are attracting renters from all walks of life — young professionals, families, and even remote workers seeking more space and lower living costs.
Places like Manchester, Liverpool, Leeds, and Sheffield continue to expand, and nearby commuter towns are benefiting too. As tenants seek good value and quality of life, these areas are becoming increasingly attractive.
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Regional investing offers long-term stability
London will always have appeal, but for landlords focused on income and portfolio growth, the regions offer a compelling alternative. The combination of lower purchase prices, higher yields, and rising demand makes this a smart time to explore beyond the M25.
With the support of a local expert, you can find the right property in the right location, without the guesswork.
Thinking of investing beyond London?
At Northwood, we’ve helped thousands of landlords succeed in regional markets across the UK. Whether you’re a first-time investor or growing your portfolio, our local knowledge and national reach mean you’ll always have the right support.
