The Midlands and the north of England accounted for almost half of all new buy-to-let purchases per landlords in the first half of the year, according to Paragon.
The analysis of the lecturer of the industrial data showed that the East and West Midlands, North West, North East and Yorkshire and Humbers were 47.4% of new buy-to-to-buy purchases with a mortgage, an increase of 46% in the same period last year and from 33.5% ten years ago.
London and the share of the Southeast has fallen from 41.6% in 2015 to 27.6% this year.
Landlords are increasingly focused on markets in the Midlands and Noord, where real estate prices are lower, resulting in higher returns and lower acquisition costs, says Paragon.
This trend accelerated after the stamp -law surcharge for those who bought extra houses, was introduced in April 2016.
The southeast (excluding London) attracted the largest share of landlord purchases at 15.4% during the first half of the year, followed by the northwest at 12.9%.
Paragon managing director for mortgages Louisa Sedgwick says: “The trend in the direction of investments in Midlands and Northern Markets has risen after the introduction of the stamp -law surcharge almost ten years ago.
“For various reasons, these markets are attractive for landlords, including the availability of suitable shares, strong tenants of tenants, healthy local economies, lower purchase costs and generally stronger revenues.”
She adds: “The southeast and London are still the most important rental markets of the UK, but given the temporary nature of these markets and their economic importance.
“The new offer against the increased requirement of the tenant has driven the rental inflation.
“Without an increase in new shares in the southeast, and in particular London, the choice of the tenant has decreased.”