On this week’s episode of Yahoo Finance Future Focus, our host Brian McGleenon sat down with Ryan Etchells, Chief Commercial Officer at Together, to discuss the growing shift in the UK property market as buy-to-let investors move away from London and the South East in favour of regional markets like the North West, North East, and Wales.
The trend is driven by the pursuit of higher rental yields, which have become increasingly difficult to achieve in London because of soaring property values.
In contrast, more affordable house prices in cities like Manchester, Liverpool, and Newcastle offer average yields above 8%, making these regions more attractive for landlords seeking stronger returns.
Etchells also highlighted how changing lifestyle and work patterns, particularly the rise of remote and hybrid working, are reshaping demand. Manchester’s city centre and suburban rental markets are booming as more people seek properties outside traditional urban hotspots.
Additionally, self-employment and gig economy jobs are on the rise, with over a million self-employed workers now aged 60 or older. This demographic shift is creating new challenges and opportunities for property investors.
Etchells pointed to Labour government policies as another factor affecting the market, particularly rising interest rates, tax changes, and regulations that are putting pressure on landlords.
He welcomed Labour’s £5bn investment in housing, but stressed the importance of supporting small and medium-sized builders, who are better positioned to address the UK’s housing shortage with regional developments.
Etchells concluded that the property market is undergoing a significant transformation, with regional areas now offering the best growth potential for buy-to-let investors.