Aerial photo of London suburbs with Canary Wharf in far distance on horizon

Categories: buy to let mortgages | portfolio landlords

Recent reports suggest the gap between London house prices and other UK cities is now at its narrowest level since 2009, with regional markets continuing to attract attention from investors.

With new opportunities for landlords across UK cities, current conditions are prompting investors to take a closer look at the structure of their portfolio and their longer-term investment plans outside of the capital. 

How London and regional markets are operating differently

The London property market has faced pressure from stretched affordability, higher borrowing costs and weaker international demand. At the same time, several regional cities have continued to show price growth, supported by stronger affordability, employment and population trends.

For landlords, this raises an important question: are opportunities increasingly shifting towards regional markets where entry prices may be lower and yields may be stronger?

Commercial Trust data shows landlords moving north

Our Quarterly Index found a notable shift in landlord activity towards lower-value, potentially higher-yielding regions during Q1 2026.

Buy to let capital moved further north, with the North East seeing regional purchase activity increase by 17.2%, while Wales increased 17.5% and the South West rose 22.0%. By comparison, London fell 14.0% and the East of England declined 12.9%.

The average purchase loan size also fell by 21%, from £240,708 to £189,604, which may suggest landlords are moving down the price ladder to access more affordable stock and potentially stronger yields.

This does not mean every regional property will offer a better return. Before considering a move into a different area, landlords may wish to review local tenant demand, expected yields, licensing requirements and how a purchase fits into wider plans.

Landlords are adapting rather than retreating

Recent wider market research also suggests the private rented sector is evolving rather than simply shrinking.

Aldermore’s 2026 Buy to Let Market Report found that 47% of landlords reported rising tenant demand, 64% still believe property is a good way to make money, and 48% saw rental yields increase.

Strong tenant demand continues to support confidence in the market, even while many landlords continue to review how portfolios are structured and managed.

Portfolio thinking is becoming more common

Looking at regional house prices alone does not tell the whole story. Aldermore’s report suggests landlords are increasingly viewing portfolios as a whole, balancing location diversity, price points, income and growth potential.

For landlords reviewing regional opportunities, this is an important distinction. A lower purchase price may be attractive, but the property still needs to fit the wider portfolio strategy.

Remortgaging remains a key focus

More than 30 councils around the UK now have no single overall party control.  This means that planning committees in these hung councils will be structurally slower, decisions will be more often deferred. In addition, policy frameworks such as local plans, Article 4 directions, and licensing consultations are vulnerable to being parked while coalition talks continue.

For landlords looking to expand a portfolio, convert a property to a House in Multiple Occupation (HMO), or progress a refurbishment that needs planning consent, the practical effect is timetable risk that runs straight into drawdown windows and refinance dates.

What landlords should review before expanding or diversifying a property portfolio

Before expanding or diversifying, landlords may wish to review:

  • Local rental demand
  • Likely yield
  • Finance costs
  • Property condition
  • Local licensing or planning rules
  • Whether the purchase fits their wider portfolio strategy

Regional markets may create opportunities for some landlords, but the strongest opportunities are likely to come where location, rental demand, finance and long-term strategy align.

Speak to one of our specialist buy to let advisors

If you are reviewing your portfolio or considering your next investment, Commercial Trust can help you understand the finance options available.

Contact our advisors today to discuss your plans.