London has bounced back as the buy-to-let capital of the UK, with 13% growth in new buy-to-let landlords between 2023-2024, compared to just 4.11% growth the previous year. 

After stuttering in 2023, London’s strong continued tenant demand and the broad array of property types buoyed the market once more last year. 

The data comes from Simply Business.

While Glasgow topped the chart in 2022-2023 with 11.95% growth, last year saw it fall back to the bottom of the board, with a much more conservative 7% growth in new policyholders. 

UK’s buy to let hotspots 

London is also home to the largest group of multi-property landlords in the UK – followed by Manchester, Birmingham and Nottingham. 

Simply Business says it’s possible that stamp duty increases, higher mortgage rates and stricter energy efficiency regulations may make portfolio ownership less appealing, or simply untenable, for landlords. In this context, houses in multiple occupation (HMOs) may become an increasingly attractive investment route. 

The UK’s HMO hotspots, all linked as areas of high rental demand, with a strong student and youth population, as well as plenty of property options to choose from, are: London, Birmingham, Bristol Manchester, Leeds, Cardiff, Nottingham, Edinburgh, Liverpool and Coventry.

On top of regulatory complexity, rising costs are a major issue for landlords, with 38% reporting they consider them to be the biggest threat to the rental market. 

Over a third (35%) say they saw monthly mortgage repayments increase in 2024, up from 31% in 2023. Of those, 10% have seen monthly repayments increase by between £500 and £1,000.

Julie Fisher, chief executive at Simply Business UK, says: “2025 will be a game-changer for UK landlords, with new regulations and rising costs reshaping the market. It’s incredibly telling that we’re starting to hear landlords talk about availability of tradespeople in the context of their investment decisions – driven in large part by the new minimum Energy Performance Certificate (EPC) regulations. 

“We know from our research that half of landlords need to make improvements to reach an EPC rating of C, and over a third (34%) report they will need to spend up to £10,000 to comply with the rules.

“Though challenges remain, the importance and resilience of landlords – and the market – should not be underestimated. Rental demand remains high as people seek flexible housing to suit their studies and work, and landlords that are able to follow and adapt to the changes effectively can absolutely still find opportunities for steady rental income and capital growth, with a vital role to play in the UK housing market.”