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The UK buy-to-let market is continuing to evolve, and recent data suggests that experienced investors remain confident in the long-term prospects of residential property despite higher borrowing costs, tax changes and new legislation.
While headlines often focus on landlords leaving the sector, a closer look at the figures tells a different story. Buy-to-let purchases have risen to their highest level for a decade, but much of this activity is being driven by landlords purchasing properties from other landlords rather than a wave of brand-new investors entering the market. For UK expat and foreign national investors, this changing landscape presents opportunities to acquire established rental properties in areas where strong tenant demand and attractive rental yields continue to support long-term investment.
Landlord Activity Reaches a Ten-Year High.
Between January and April 2026, landlords accounted for 13.3% of all residential property purchases across Great Britain. This represents the highest proportion since 2016, when changes to Stamp Duty first transformed the buy-to-let market.
‘However, unlike previous investment booms, today’s market is being driven largely by landlord-to-landlord transactions’ says Stuart Marshall, CEO of Liquid Expat Mortgages. ‘Many existing landlords have chosen to sell properties following increases in mortgage rates, changes to taxation and the introduction of the Renters’ Rights Act. Rather than reducing the overall size of the rental sector, many of these homes are simply being acquired by other experienced investors who continue to see value in residential property.’
‘This demonstrates an important distinction. Rather than signalling declining confidence in buy-to-let, the market is becoming increasingly professional, with experienced investors purchasing properties that already have an established rental history.’
The North Continues to Attract Investors.
Regional performance tells an even more interesting story. The strongest growth in landlord purchases has been recorded across the North of England, particularly in the North West, North East, and Yorkshire & Humber. In these regions, landlords now account for almost one in four property purchases, with the North West experiencing one of the largest increases in investor activity.
The reasons are straightforward. Compared with many southern regions, northern cities continue to offer:
- Lower purchase prices
- Higher rental yields
- Strong tenant demand
- Better affordability for investors
- Greater potential for long-term capital appreciation
For overseas investors, these markets can often deliver stronger returns while requiring a lower initial investment than comparable properties in London or the South East.
Established Rental Properties Offer Lower Risk.
One of the most notable trends emerging this year is the increasing number of previously rented properties remaining within the private rental sector. A record proportion of buy-to-let purchases now involve homes that were already let by the previous owner.
‘This is likely because properties with an established rental history may already be generating income, have a proven level of tenant demand, and provide a clearer indication of achievable rental yields than newly converted investment opportunities. In many cases, investors are effectively acquiring an existing rental business rather than starting from scratch.’
Higher Rental Yields Continue to Support Investment.
‘Although mortgage costs remain higher than many investors became accustomed to during the previous decade, rental yields have also strengthened considerably’ continues Stuart. ‘Average gross yields on previously rented properties have increased to around 6.7%, reflecting rising rents and relatively stable property prices. Higher yields help offset increased borrowing costs while improving long-term investment returns.’
Many of the strongest-performing locations can be found across northern England, where affordability continues to attract both investors and tenants alike. Cities such as Manchester, Liverpool, Leeds and Newcastle continue to benefit from expanding employment markets, growing student populations and ongoing regeneration projects, all of which help sustain rental demand.
Rental Demand Remains Strong.
The rental market itself also continues to provide positive signals. Average rents across Great Britain have continued to rise, with rental growth strengthening over recent months as supply remains constrained. Inner London has experienced some of the strongest increases, although many regional cities continue to see healthy levels of tenant demand driven by affordability, employment opportunities and population growth.
‘For investors, this ongoing imbalance between supply and demand helps support occupancy levels and provides confidence that well-located properties will continue to attract tenants. While future rental growth may moderate, the underlying shortage of rental accommodation across many parts of the UK continues to underpin the long-term outlook for the private rented sector.’
Opportunities for UK Expats and Foreign National Investors.
For UK expat and foreign national investors, today’s market offers a number of compelling opportunities. Rather than competing for newly developed investment properties, buyers can often purchase established buy-to-let homes that already have a proven rental track record. While many northern cities now combine competitive purchase prices with above-average rental yields, making them particularly attractive for investors seeking both income and future capital growth.
With many existing landlords choosing to restructure their portfolios or exit the market altogether, buyers who are well financed are increasingly able to acquire quality investment properties in locations with excellent long-term fundamentals.
Securing the Right Buy-to-Let Mortgage.
‘Financing remains one of the most important considerations for overseas investors. Mortgage options for UK expats and foreign nationals have expanded significantly in recent years, with a growing number of specialist lenders offering products designed specifically for international applicants.’
‘However, eligibility criteria can vary depending on where you live, how your income is received and the type of investment property you’re purchasing. Working with an experienced specialist broker can simplify the process, helping investors access lenders that understand international circumstances and securing finance tailored to their investment goals.’
The Buy-to-Let Market Is Evolving Rather Than Declining.
While regulatory changes and higher borrowing costs have undoubtedly reshaped the UK rental market, the latest figures demonstrate that investor confidence has not disappeared. Instead, the market is becoming more selective and increasingly driven by experienced landlords focusing on locations that offer strong rental demand and sustainable long-term returns.
For UK expat and foreign national investors, this changing landscape may present opportunities to acquire high-quality investment properties in established rental markets, particularly across northern England where yields and affordability continue to outperform many southern regions.
Liquid Expat Mortgages
Suite 4b, Link 665 Business Centre,
Todd Hall Rd,
Haslingden, Rossendale
BB4 5HU
Phone: 0161 871 1216
www.liquidexpatmortgages.com
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sergio@ulyssesmarketing.com
+44 161 633 5009
