This year was the first year that more than half – 52% – of limited company purchases came from outside the North East.
The share of North East purchases by limited companies based elsewhere stabilised in the mid-40% range from 2016 onwards, before rising steadily from 2023.
David Fell, lead analyst at Hamptons, said the milestone reflects the North East’s emergence as one of the UK’s most attractive BTL markets.
He added: “This year was the first year that over half of limited company purchases were made by a company headquartered outside of the region.”
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Investors drawn by high yields
The shift comes as landlords increasingly look beyond their local markets in search of stronger returns. The North East has become a particular draw thanks to lower property prices and some of the highest rental yields in the country.
Fleet Mortgages found the region delivered the UK’s highest average rental yield in Q2 2026, rising 0.5 percentage points year-on-year to 9.2%.
Fell said the region’s investment credentials have attracted buyers from across the country.
“The North East has become one of the places where buy to let stacks up best financially, it has increasingly attracted the attention of investors from right across the country. Initially, this was primarily Southerners, and Londoners specifically, but increasingly Midlanders and other Northerners have bought there too. In recent years, rising prices here have eroded yields and pushed up entry costs,” he said.
Landlords look beyond local markets
Commercial Trust data suggests the trend extends beyond limited company purchases. The broker reported a sharp increase in Northern investment activity, with the North East’s share of purchase mortgages rising from 1.7% to 8.4% year-on-year.
Jorden Abbs, CEO of Commercial Trust, said landlords are becoming more willing to invest outside their home regions when the numbers stack up.
Abbs continued: “What we appear to be seeing is landlords becoming more selective and increasingly willing to look beyond their own region when the figures support it.
“Some may be diversifying by making their next purchase in the North while retaining Southern properties that continue to perform well. Almost two-thirds of those buying in the North East lived outside the region, for example. That does not tell us they came specifically from the South, but it does show that the region’s appeal extends beyond local landlords.”
Younger investors enter the market
The region’s affordability is also attracting younger investors.
Hamptons found that while the average landlord in England is aged 60, 51% of purchases in the North East during the past year were made by investors under 50.
Fell said: “Lower North East values have also attracted younger investors.
“A combination of lower prices and higher yields means the North East offers younger landlords the lowest entry-level costs. For many, it’s a choice between investing sooner in the North East or saving up for much, much longer and buying locally.”
House prices continue to rise alongside demand
Growing investor interest comes as the wider housing market continues to perform strongly.
Zoopla’s latest House Price Index showed annual house price growth in the North East accelerated to 3.1%, up from 2.6% a year earlier.
Meanwhile, Rightmove reported that asking prices fell across every UK region in August except the North East, where they rose by 0.6%.
The North East seems to be increasingly establishing itself as a national BTL hotspot rather than simply a regional one.
