With rising costs and tighter yields in London, many landlords are turning their attention north. And for good reason. Leeds and Birmingham are quickly becoming some of the UK’s most exciting regional property hotspots.
Both cities have the right ingredients: regeneration, strong rental demand, and affordability compared to the South East. Together, these factors create a compelling case for landlords looking to expand or diversify their property portfolios.
Leeds: growth, jobs, and steady demand
Leeds has transformed in recent years. It’s now one of the UK’s fastest-growing cities, with a booming jobs market and a large student and graduate population.
Regeneration projects and the redevelopment around the city centre continue to attract investment, while demand for high-quality rental homes remains strong. For landlords, this means:
- Consistent tenant demand
- Rental yields above the UK average
- Capital growth potential as regeneration continues
Birmingham: the beating heart of the Midlands
Birmingham is seeing a similar trajectory. With major infrastructure projects like HS2, the city is becoming even better connected. With new businesses, residential developments and cultural venues opening, it’s becoming a magnet for renters.
According to forecasts, Birmingham is one of the top cities for rental growth in 2025. Key drivers include:
- Young, mobile population
- Regeneration zones in Digbeth and Edgbaston
- Ongoing demand for city-centre flats and family homes alike
Affordability meets opportunity
According to recent data, property prices in both cities are still lower than in the South. This gives landlords a lower entry point, better returns, and the ability to spread risk across multiple properties.
In areas of Leeds and Birmingham, it’s possible to secure rental yields of 6% to 8% with the right property type and tenant profile.
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What tenants want this year
To stay competitive, landlords need to match their offering to what tenants actually want. In Leeds and Birmingham, that means:
- Modern, energy-efficient homes (EPC C or better)
- Proximity to universities, hospitals, or commuter transport
- Fast broadband and flexible space for hybrid work
These features don’t just attract tenants — they often allow landlords to charge premium rents.
Don’t overlook the commuter belt
It’s not just the city centres seeing demand. Towns just outside Leeds and Birmingham are also growing fast, especially those on commuter train lines or with access to local business hubs.
Places like Solihull, Sutton Coldfield, and Pudsey are seeing new build activity and infrastructure upgrades, making them ideal for family tenants or professionals seeking more space.
Make the most of regeneration
Both cities are benefiting from major regeneration projects that will continue over the next 5 to 10 years. Investing early in these areas can give landlords a first-mover advantage, with higher capital growth and better long-term prospects.
Check local planning applications, transport investments and new schools to spot the next emerging hotspot.
Speak to a local expert about regeneration areas
Portfolio diversification pays off
Adding regional properties to your portfolio can reduce risk. You’re less exposed to market fluctuations in a single location, and you can tap into stronger yields without overstretching your budget.
This is especially important this year, where interest rates, taxation and tenant needs are all evolving.
Support every step of the way
Whether you’re based locally or investing from another part of the UK, our team at Whitegates can help you:
- Identify high-performing investment areas
- Navigate buy-to-let mortgages and legislation
- Let and manage your property with ease
Access free investment advice today and let’s grow your portfolio.
