Buy-to-let (BTL) purchases in the Midlands and North made up nearly half of all new BTL mortgage activity in the first six months of the year, according to Paragon Bank analysis.
The East and West Midlands, North West, North East and Yorkshire and the Humber accounted for 47.4% of new BTL mortgaged purchases by volume, an increase on last year’s 46% and up from 33.5% 10 years ago.
Data showed that the North West was the second biggest market for BTL mortgages, with 12.9% of purchases.
Yorkshire and the Humber reached its highest share at 9.5%, up from 9.2% last year.
The North West sat just behind the South East, which made up 15.4% of purchases.
The North West overtook London in 2019, with London now at 12% of purchases.
The combined share for London and the South East dropped from 41.6% in the first half of 2015 to 27.6% this year, in line with last year.
The South West also fell to 6% from 6.2% last year.
Wales and Scotland have seen little change over the past decade.
Wales made up 3.5% of BTL purchases, compared to 3.2% in 2015.
Scotland accounted for 6.8%, up from 6% ten years ago.
Louisa Sedgwick, Paragon Bank managing director of mortgages, said: “The trend towards investment across Midlands and northern markets increased following the introduction of the Stamp Duty surcharge nearly a decade ago.
“These markets are appealing to landlords for several reasons, including the availability of appropriate stock, strong tenant demand, healthy local economies, lower purchase costs and generally stronger yields.”
Sedgwick added: “The South East and London are still the UK’s most important rental markets, however, given the transient nature of these markets and their economic importance.
“Stifled new supply against heightened tenant demand has driven rental inflation.
“Without an increase in new stock across the South East, and in particular London, tenant choice is diminished.”
