London has emerged as the highest growth buy-to-let (BTL) market in the UK, experiencing a 13% increase in new landlords between 2023 and 2024, research from Simply Business found.
This followed a more modest 4.11% growth the previous year.
Simply Business analysed more than 100,000 landlord insurance policies.
Birmingham and Leicester each recorded 12% growth in new landlords, while Leeds posted 11% and Manchester 10%.
Nottingham also saw a 10% rise in new buy-to-let landlords.
After a strong performance in 2022-23, Glasgow had the lowest growth rate, registering just 7%.
Simply Business also highlighted the challenges landlords face regarding regulation.
Landlords expressed concerns about the impact new Government measures might have on the BTL market.
Research found that 71% of landlords felt this Government would have a negative effect, with 69% citing changing legislation as their biggest hurdle.
The report also noted that the rising cost of mortgages continues to be a concern for landlords, with 38% regarding it as a major threat to the rental market, up from 31% in the previous year.
Mike Harvey, a landlord in London with 25 years of experience, said: “The London rental market is performing very well.
“It’s straightforward to find good tenants, and rental incomes remain strong.
“As a landlord, I’m also finding that insurers are very competitive at the moment, and I have easy access to a wide range of tradespeople who are always quick to respond when I need help with my properties.
Harvey added: “We have a 2-unit block and have found these to be the least hassle, with the nicest tenants and best investment return – so we’re very pleased with this position for the short and long term.”
Julie Fisher, UK CEO at Simply Business, said: “2025 will be a game-changer for UK landlords, with new regulations and rising costs reshaping the market.
“It’s incredibly telling that we’re starting to hear landlords talk about availability of tradespeople in the context of their investment decisions – driven in large part by the new minimum Energy Performance Certificate (EPC) regulations.
“We know from our research that half of landlords need to make improvements to reach an EPC rating of C, and over a third (34%) report they will need to spend up to £10,000 to comply with the rules.
Fisher added: “Though challenges remain, the importance and resilience of landlords – and the market – should not be underestimated.
“Rental demand remains high as people seek flexible housing to suit their studies and work, and landlords that are able to follow and adapt to the changes effectively can absolutely still find opportunities for steady rental income and capital growth, with a vital role to play in the UK housing market.”
