12:01 AM, 26th March 2026, 2 weeks ago
Buy to let borrowing has shifted towards northern England over the past decade, with landlord purchases now concentrated outside London and the south following the introduction of the stamp duty surcharge.
An analysis by Paragon Bank shows that in 2015, just before the additional 3% tax on second homes took effect, southern regions accounted for nearly 56% of all mortgaged BTL purchases.
The midlands and north, by comparison, made up just under 35%.
However, by 2025, the position had reversed as the midlands and north together accounted for just over half of all buy to let purchases, while the south’s share dropped to 38%.
Buy to let’s defining moment
Paragon’s managing director of mortgages, Louisa Sedgwick, said: “The stamp duty surcharge was a defining moment for the buy to let market.
“Ten years on, the data shows a clear and lasting rebalancing, with the midlands and north now accounting for a greater share of landlord purchases than the south.”
She added: “Landlords have become more commercially focused, and regions such as the north west, Yorkshire and the north have moved from being alternative locations to core buy to let markets, while higher-priced southern regions have seen their relative importance decline.”
Future problems for renters
Ms Sedgwick warns: “The long-term decline in investment into London and the south east could be storing up problems for future renters and exacerbate the supply demand imbalance issue that has affected these markets in recent years.
“If projected population growth is anywhere near accurate, we will need greater levels of supply for these transient and economically important rental markets.
“Without it, tenants could face rising rental inflation and reduced levels of choice.”
Other areas for BTL investment
Paragon also says that the north west has moved up the rankings, increasing its share of purchases from 9% to almost 14% across the period.
Yorkshire followed a similar path, rising from 7% to just over 10%, while the north east climbed from 4% to 7%.
Gains were also seen in the West Midlands which rose from 8.19% to 10.6%, and the east midlands edged up from 7.45% to 8.79%.
Southern regions, though, moved in the opposite direction with Greater London falling from 19.03% of purchases in 2015 to 12.28% in 2025.
The south east saw a steeper decline, dropping from 24.09% to 15.91%, while the south west reduced from 8.66% to 6.44%.
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