Birmingham, Bristol and Leicester are seeing the fastest growth in buy-to-let investment according to figures released today.

The figures, released by landlord insurance provider Simply Business, revealed Birmingham, Bristol and Leicester top the list for the most attractive cities for landlords looking to invest in 2022.

The analysis of over 150,000 landlord insurance policies found investment in Birmingham increased 14.6% from 2020 to 2021, followed by Bristol with a 12.7% growth in investment and Leicester with an 11.8% increase.

Landlords are increasingly choosing to invest in regions outside of London post-pandemic to attract a greater rental yield. London came 7th  in the list for buy-to-let growth, mirrored by an exodus of renters during the pandemic and increased rents as a consequence of demand outstripping supply. 

% growth
Birmingham

14.6

Bristol

12.7

Leicester

11.8

Manchester

11.4

Liverpool

10.8

Edinburgh

10.7

London

10.3

Leeds

10.2

Nottingham

7.9

Glasgow

7.5

The analysis suggests that UK landlords believe that buy-to-let prosperity will be well spread across the UK’s regions in 2022.

Alan Thomas, UK CEO at Simply Business, comments: “The pandemic has contributed to a reshaping of the UK rental market. With rising house prices and an increase in average rent, there have been slower levels of growth in buy-to-let investment across the capital. Instead, many landlords are now looking to other areas – particularly those with a high student population – where they can attract a greater rental yield.

He added: “Contributing over £16 billion annually, landlords are a vital part of our economy. What’s more, the 2.6 million landlords across the UK provide accommodation to over 4.4 million households, so it’s encouraging to see growth in buy-to-let investment across all corners of the UK. We can expect this to carry through 2022 as the country continues its recovery after Covid-19 and landlords look to make their next investment.”

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