London has emerged as the fastest-growing buy-to-let market in the UK, earning the title of the nation’s buy-to-let capital. New data from insurer Simply Business reveals a 13% rise in new landlords taking out insurance policies between 2023 and 2024. This marks a sharp rebound from the previous year’s modest growth of 4.11%.
By contrast, Glasgow, which led the rankings with an 11.95% growth rate in 2022-2023, has seen its growth slow to 7% in the latest figures, placing it at the bottom of the table.
Julie Fisher, UK Chief Executive at Simply Business, highlighted the changing landscape for landlords:
“2025 will be a transformative year for UK landlords. New regulations and rising costs are reshaping the market, and the availability of tradespeople is becoming a critical factor in investment decisions. This is largely driven by the new Energy Performance Certificate (EPC) requirements.”
Half of landlords, according to Simply Business research, must upgrade their properties to achieve the minimum EPC rating of C. Over a third (34%) anticipate spending up to £10,000 to meet the new standards.
Despite these challenges, Fisher emphasized the resilience of the buy-to-let market:
“Rental demand remains high as people seek flexible housing options. Landlords who adapt to these changes can still secure steady rental income and benefit from capital growth, playing a crucial role in the UK housing market.”
Looking ahead, the political environment also poses concerns. Nearly three-quarters (71%) of landlords expect a Labour government to negatively affect the buy-to-let sector. This sentiment has been fueled by measures like the increase in the buy-to-let stamp duty surcharge from 3% to 5% in the Autumn Budget.
London’s strong recovery and continued demand for rental housing underline the enduring opportunities in the UK buy-to-let market, despite evolving regulations and economic pressures.
