Buy-to-let investors are seeing the fastest asking price growth in traditionally lower-priced areas, according to new data from Rightmove, with parts of the North of England and Scotland now outperforming more expensive southern markets.
The latest figures show that affordability, not prestige, is driving demand as buyers and investors reposition for 2026, creating new pockets of opportunity for landlords focused on yield and long-term value.
UK house price growth and landlord investment hotspots
Rightmove’s analysis shows that asking prices rose most sharply in less expensive locations during 2025. Of the 50 areas recording the strongest annual growth, only seven are priced above the current national average of £368,031.
The standout performer was Hawick in the Scottish Borders, where average asking prices rose by 18% to £148,633. Durham followed with a 15% rise to £251,339, while Stannington in Sheffield saw prices increase by 12% to £264,078.
For property investors, these figures underline a continuing shift away from headline locations towards markets where entry costs are lower but tenant and buyer demand remains resilient. In cash terms, an 18% rise in Hawick equates to more than £22,000 added to the average asking price in just one year.
Buy-to-let demand strengthens in affordable suburbs
Rightmove also highlighted strong growth in suburban areas with good access to major cities, including parts of Leeds, Sheffield, Liverpool, Newcastle, Hull and Glasgow. These locations tend to appeal to buyers and renters seeking value without losing connectivity to employment and services.
Colleen Babcock, property expert at Rightmove, said demand remains concentrated at the affordable end of the market. “There is typically a larger pool of buyers who are looking to move within more affordable price brackets,” she said. “Therefore, locations with more homes that fall under the average asking price can see more demand from buyers, and that underpins house price growth in those areas.”
This trend aligns with feedback from agents across the country. Propertymark has consistently reported that buyers are adjusting expectations on location as affordability pressures persist.
Mary-Lou Press, president of Propertymark, said: “Buyer demand continues to be strongest in areas where homes remain comparatively affordable, particularly in locations that offer good transport links, access to employment, and proximity to key services such as schools, universities, and hospitals.”
Mortgage rates and housing supply shape landlord strategy
According to the latest Rightmove House Price Index, the average asking price of a home coming onto the market rose by 2.8% in January 2026 to £368,031 – the largest January increase recorded in the index’s 25-year history.
However, supply conditions remain a key counterbalance. Around one third of homes currently on the market have already seen a price reduction, and stock levels are at their highest for this time of year since 2014. For landlords considering acquisitions, this creates scope for negotiation despite headline growth figures.
Improving affordability is also supporting confidence. Average two-year fixed mortgage rates have fallen to 4.29%, down from 5.03% a year ago, according to Rightmove. On a typical purchase at the national average asking price with a 20% deposit, that reduction translates into a saving of more than £100 per month compared with last year.
For buy-to-let investors, lower finance costs combined with sustained demand in affordable regions may strengthen the case for targeting secondary cities and commuter suburbs rather than higher-priced cores.
Editor’s view
The data reinforces a familiar message for landlords: returns increasingly lie in realism, not reputation. As affordability continues to shape behaviour, markets once seen as unfashionable are delivering stronger growth than many prime locations. The question for investors is whether this represents a lasting rebalancing – or simply the next phase of a market adapting to stretched budgets and cautious confidence.
Author: Editorial team – UK landlord & buy-to-let news, policy, and finance
Published: 28 January 2026
Sources: Rightmove House Price Index; Propertymark; industry commentary
Related reading: Rent growth slows to 4% as house prices edge higher
