Average property prices in southern England are forecast to rise by around 1.5% in 2026. By contrast, cities including Manchester, Leeds and Newcastle are projected to see growth closer to 4.2%, underscoring the North’s strengthening appeal among yield-focused investors. LandlordBuyer notes that the trend is already prompting landlords to diversify geographically, with the proportion investing outside their home region rising by 15% since 2022.
Returns remain a key driver. Average rental yields in the North West and Yorkshire are estimated at around 7%, compared with 4.1% across London and the South East. Rents in the North West rose by 6.2% year-on-year in 2024, double the rate recorded in London, and early projections suggest this performance will continue into 2026.
While the wider economic backdrop for 2026 is expected to remain challenging but broadly stable, elevated borrowing costs could continue to weigh on southern markets, with potentially limited demand for higher-value assets. Northern regions, however, continue to benefit from affordability, employment growth and government-backed infrastructure schemes - which LandlordBuyer suggests may help the North position itself as a leading destination for landlords.
Jason Harris-Cohen, managing director at LandlordBuyer, said: “We’re seeing a fundamental change in where landlords choose to invest. The North has become the engine room for yield-driven investors, supported by regeneration projects, affordable purchase prices, and resilient rental demand. London will always have prestige, but it’s no longer the only place where landlords can build sustainable portfolios.”
