Skip to content

Is the North West Still a Buy-to-Let Hotspot?

Want to invest in UK property in 2023? Enquire today and gain access to our exclusive investment deals before anybody else.

    Can the North West Maintain Its Buy-to-Let Supremacy?

    When it comes to property, location is everything, and wise property investors are always on the lookout for the UK’s top buy-to-let hotspots.

    For some time now, there has been a shift away from London and the South as buy-to-let investors hunt for more affordable property and more generous rental yields in the North of England.

    In particular, the North West has gained a strong reputation as a buy-to-let hotspot in the UK.

    The area boasts high demand, lower property prices than the overall average, healthy rental yields, and strong projected capital growth.

    But are other regions vying for the North West’s buy-to-let crown, and can they knock the area from its place at the top?

    Read on to see the latest developments in the property investment market.

    Instant £10k Capital Appreciation

    Prices are increasing in our best-selling development on 1st December. Enquire today to lock in the lower prices and earn up to £10,000 immediate capital growth.


      Buy-to-Let Hotspot Regional Comparison

      As a buy-to-let destination, the South of England still suffers from the issues that drove investors north in the first place. The sky-high property costs are an unassailable barrier for many, and slow capital growth and low rental yields further compound this image in the eyes of buy-to-let investors.

      In the regional buy-to-let showdown, the North East is the North West’s main competitor as the top buy-to-let hotspot. The area can offer comparable rental yields to the North West and has its share of attractive buy-to-let cities like Newcastle and up-and-coming locations like Sunderland.

      But there’s fight in the North West yet, and there’s plenty of evidence that the region is still one of the best UK buy-to-let areas in 2023.

      Instant £10k Capital Appreciation

      Prices are increasing in our best-selling development on 1st December. Enquire today to lock in the lower prices and earn up to £10,000 immediate capital growth.


      Why is the North West Still a Buy-to-Let Hotspot?

      Young Population and Student Destination

      Young adults are the most common age group for renting, so many buy-to-let investors are looking for cities with a younger population than average to ensure a consistent flow of potential tenants for their property. This puts the North West in the sights of many savvy investors, as large urban areas such as Liverpool, Manchester, Preston and Lancaster have sizable young populations.

      Increasingly, young people are moving away from London to chase a more affordable cost of living up north. There are robust employment options for young professionals in the North West, and Manchester and Liverpool have been popular choices for those leaving the capital.

      The North West is also one of the top destinations for buy-to-let student accommodation, with prominent universities in Manchester, Liverpool, and Preston. Major student cities in the North West, like Manchester, also have high graduate retention, meaning many of these students stay and work in the area after finishing university, adding to rental demand.

      High Capital Growth

      Property is more affordable in the North West compared to the UK average and punching above its weight in terms of capital growth.

      According to The Times, house price growth has been robust in Greater Manchester. As house prices were comparatively low previously, property is still relatively affordable in the area. Those who invest in the North West now are likely to reap the rewards of healthy capital value appreciation in the future, as property experts like Savills predict capital growth in the region of 11.7% over five years to 2027.

      High Rental Yields

      The North West can offer some tempting rental yields for buy-to-let investors thanks to comparatively lower property prices.

      High demand and low supply are also pushing rents up higher and higher, adding to the rental income of investors. Demand is so high in the North West that the BBC has reported 30 enquiries per rental property, higher than any other UK region.

      Rents in Greater Manchester have been climbing exponentially, up 13.8% on the previous year in Manchester and 16% in Salford. Other parts of the region are also experiencing rapid rent increases, with 8.7% in Liverpool and 7.5% in Warrington.

      Despite these rising rents, the North West is still an attractive place to live for renters. Costs are snowballing, but less than you would see when investing in London property. As rents were considerably lower in the first place, the area is still attracting plenty of rental demand, regardless of the high increases.


      The North West has some exciting potential regeneration projects on the cards. The government has recently announced that it will invest £19.8 billion in new inter-city and local links in the North, redirecting money from the recently-scrapped HS2 scheme. A further £12 billion will be set aside to deliver the Liverpool to Manchester Northern Powerhouse Rail route.

      Individual cities in the North West also have their respective regeneration projects, with plenty of exciting plans for revitalising their ailing areas.

      Buy-to-let property investors can benefit from regeneration efforts as they make areas more attractive to buyers and renters, boosting the local population. This drives up rental demand rent prices, and encourages capital growth. Investors who buy in before the projects are completed can maximise returns through improved rental income and house value appreciation.

      Read our updated guide to learn more about regeneration in the North West.

      Completed 2-Bed only £179,950!

      Limited 2-bed apartments available from £179,950 in our completed and tenanted Liverpool development. Assured Net income available on this back to market deal with major savings.


      Best North West Areas to Invest in Buy-to-Let

      Greater Manchester

      Manchester is considered the North West’s commercial centre and one of the most in-demand areas for rental properties. Property prices are relatively affordable compared to other regions but not as cheap as most of its neighbours.

      Greater Manchester also includes Salford and Wigan, and both are considered up-and-coming buy-to-let locations thanks to their commutable proximity to major North West cities.

      Property prices are much more affordable in the surrounding towns and cities than in Manchester City, and impressive capital growth has been observed as the areas grow in popularity.

      Although the average yields reported for Manchester City are higher, decent rental yields can still be made in the surrounding commuter towns.


      Buy-to-let properties in Liverpool have had an impressive revitalisation journey, fully reversing the city’s fortunes and rebranding it as an exciting and modern place to live. The city has some ambitious regeneration projects in the pipeline, focusing on the Knowledge Quarter and the Baltic Triangle Creative Quarter.

      Liverpool can offer some of the best rental yields in the UK. According to Zoopla, the second-highest average rental yield for the North West is 7.02%.


      Burnley is garnering attention as an up-and-coming buy-to-let hotspot. This is because it offers some of the best rental yields in the UK, as per Zoopla, averaging 7.92%. Burnley is one of the cheapest areas for buying property in the country, which is bound to catch the eye of wise investors.

      Completed 2-Bed only £179,950!

      Limited 2-bed apartments available from £179,950 in our completed and tenanted Liverpool development. Assured Net income available on this back to market deal with major savings.

        The North West is Still a Buy-to-Let Hotspot

        The formidable combination of a younger population, high rental yields, high capital growth, and promising regeneration efforts means the North West hasn’t entirely lost its crown yet. With a mix of established cities and up-and-coming towns, the region offers varied investment opportunities for buy-to-let ventures that are hard for other areas to beat.

        Want to stay up-to-date with the latest property market developments? Consider reading our latest guides, which cover everything from property development for beginners to the best areas to buy an investment property!

        Avatar photo

        Jessica Ferris

        Jessica is a property content writer at RWinvest. Keeping a close eye on the UK property market, Jessica helps our readers stay informed and up to date on the latest market news and statistics.


        Contact Us

        Want to Get in Touch?

        Fill in the form to contact us today and a member of our award-winning property team will be in touch to help.

          UM Google Review

          I recently had the pleasure of purchasing a flat from RWinvest, and I must say that my experience has been nothing short of exceptional. From the initial consultation to the final handover, every aspect of the process was handled with utmost professionalism, transparency, and efficiency.

          Umut Mutlu

          Google Reviews Logo
          AB Trustpilot Review

          I want to express my sincere appreciation for the outstanding service I've received during my property purchase. The entire process, from start to finish, has been remarkably smooth and efficient. Furthermore, I'd like to commend the excellent service provided by the team. Your commitment to ensuring a five-star customer experience truly shines.

          Angelina Bulgakova

          PG Trustpilot Review

          Like always it has again been a great experience with RW Invest. Chloe from the client care team was really helpful. She dealt with my queries very efficiently and professionally and supported me very well all the way through to the exchange.
          Andy from sales team was amazing as well in helping me shortlisting and finalising the unit I wanted to buy. Overall great experience

          Prab Gill

          Arrow left
          Arrow right