The North East could be the next buy-to-let hotspot, with the number of landlords planning to expand their portfolios doubling in a year.
This is according to new figures from the National Landlords Association, which found that nearly one in five landlords with properties in the region intend to buy more property during the next three months.
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Meanwhile rental yields across the North grew by 4.8 per cent over the last 12 months, with the average rent in the region now sitting at £651.
But the picture is less rosy in London, previously a key driver for the rental market. Central London saw yields fall by 9.4 per cent in the year to December, while yields in Greater London contracted by 2.9 per cent in the same period.
Yields also fell by 3.1 per cent in both the South West and Scotland, while the East of England surged ahead with an increase of 8.1 per cent.
Just five per cent of London landlords expect to expand their portfolio during the coming quarter, down from 15 per cent a year ago. This represents the lowest figure in any of the regions.
Tenant demand slowing
Meanwhile rising tenant demand was reported by just 17 per cent of London landlords in December, down from 45 per cent 12 months previously.
Carolyn Uphill, chairman of the National Landlords Association, said: “It looks like central London is simply becoming too expensive for most people, regardless of whether you want to buy, invest, or rent.
“For many tenants, the practical solution of moving out of the city to more affordable suburbs with good transport links is becoming increasingly appealing.
“In turn, it seems that landlords have been quick to respond, turning their backs on the capital and looking to other areas where the upfront cost of acquiring property is lower, and the potential yields to be had are higher.”