London has been labelled the buy-to-let capital of the UK, with 13% growth in new landlords taking out insurance between 2023-2024, analysis from insurer Simply Business has found.
This compares to growth of just just 4.11% the previous year, suggesting that activity in the capital has bounced back.
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.
Julie Fisher, UK chief executive at Simply Business UK, said “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.”
Almost three quarters (71%) of landlords said they think the Labour government will have a negative impact on the buy-to-let market, which shouldn’t come as a surprise, given that the buy-to-let stamp duty surcharge was increased from 3% to 5% in the Autumn Budget.