UK buy to let hot spots mapped

A heat map analysis showing private rental activity has revealed most buy to lets are in just 25% of the country.

Buy to let heatmapThe map clearly shows much of the country is a no-go zone for landlords – and most active property businesses are running in the Midlands and South East.

The map was put together by property analysts Hometrack, which split buy to let in to mature, active and inactive markets.

The result was 7% of the country – mainly London and the Home Counties – accounts for 29% of all buy to lets.

Unsurprisingly, the rest are grouped in towns and cities – especially those with universities – comprising 22% of the country and 40% of private rental housing.

The inactive market is made up of 71% of the UK and includes 38% of private rental housing and is defined as the area with lowest tenant demand and where landlords are likely to suffer longer voids.

Richard Donnell, Hometrack’s research director, said: “How buy to let works in different places is something developers, local authorities and investors should consider when looking at local housing markets.  Setting unaffordable rents for an area or providing homes in places with little or no demand are pointless.”

Hometrack warns property investors that buy to let does not work in all areas – and neither will government initiatives to help first time buyers.

“Affordability will continue to stop buyers in the short term.  However, developers, investors and local authorities must take not of the bigger picture and understand that the rental market is not uniform and differs greatly across the country,” said Donnell.