Buy to let landlords are increasingly targeting smaller, secondary towns and cities rather than big urban centres.
Data from Paragon Bank shows the strongest increase in BTL mortgage business in the past year has been in locations outside of major city centres.
Aside from London and Manchester, the top 10 highest growth locations in urban completions were in secondary towns and cities.
The highest percentage increase was recorded in Milton Keynes, which experienced a 667 per cent increase in completions in 2021 compared to the previous year. This was followed by Bristol with a 300 per cent increase.
Other urban locations in the top 10 included Plymouth, Stoke, Northampton, Cardiff and Nottingham.
Paragon Bank director of mortgage Richard Rowntree says: “Landlord demand for city and town centre property was strong in 2021, with Paragon’s analysis showing completions for house purchase increasing by 100 per cent compared to the previous year.
“The strongest growth was not necessarily in the UK’s major cities. Aside from London and Manchester, the top 10 growth locations were in secondary cities or large towns. The likes of Milton Keynes, Luton, Bristol, Northampton and Nottingham experienced strong double or triple-digit growth in completions during the year.”
He adds: “There appears to be one of, or a combination of, three factors that each of these locations share. They are in commutable distance to a major city, they mostly have vibrant universities and they have healthy local economies.
“Landlords have been reacting to changing tenant demand and there is clearly demand for tenants to retain urban living, but perhaps targeting smaller towns and cities.”