Insurance firm Simply Business has unveiled a new league table identifying the UK’s top city hotspots for buy-to-let growth, based on an analysis of over 100,000 landlord insurance policies. The findings show Glasgow at the forefront with a notable 12% increase in buy-to-let properties, while Nottingham and Leeds followed closely with over 8% growth each. London, despite its vast portfolio of over 40,000 buy-to-let properties, experienced the least growth among the cities evaluated by the insurer.
The 2023 ranking for the top 10 cities in the buy-to-let sector, according to insurance policy data, is as follows:
Edinburgh, which led the growth chart in 2022, has now dropped to ninth place, while Leicester also saw a decrease in its ranking. Leeds made a significant leap to third place this year, a notable rise from its position outside the top five in the previous year.
London, though it holds the record for the highest number of private rental properties, contributing to 40% of the policies handled through the broker in 2023, has shown a marked slowdown in growth. With an increase of just 4%, compared to 21% in 2022, there’s an implication that landlords might be shifting their focus away from the capital for property investments.
A spokesperson for Simply Business commented on the trend: “It’s heartening to see continued growth in the buy-to-let sector, with our data demonstrating that Glasgow is becoming an attractive spot for landlords to invest. Landlords provide housing to over five million households nationwide, but a combination of economic uncertainty, changing regulations, and rising costs meant there was no shortage of challenges facing the nation’s landlords in 2023.”