Rental performance in the UK has never been more fragmented.
In 2025, national averages were misleading. The real story is regional divergence.
Outperforming regions share common traits:
- Strong graduate retention
- Diverse local economies
- Infrastructure investment
- Below-average house prices relative to rents
Cities such as Manchester, Leeds, Sheffield, Nottingham, and parts of the West Midlands continue to deliver strong yields; particularly for HMOs and BTR-style units.
Meanwhile, some southern markets are experiencing yield compression, not due to weak demand, but because acquisition costs have outpaced rental growth.
Another standout trend is overspill demand; renters priced out of city cores are moving one ring outward, driving rent growth in previously overlooked districts.
At DXXV, sourcing is driven by rental performance data, not assumptions. The landlords winning are those willing to follow fundamentals, not familiarity.