Cardiff’s CF24 postcode attracted the best degree of buy-to-let (BTL) funding in the course of the 12 months to June 2025, Paragon Bank reveals, climbing from fifth place final 12 months to top the lender’s newest BTL hotspot list.
With over 4 in 10 properties, 42%, within the CF24 space are privately rented and common yields of 8.9%, which is predicated on the quantity of BTL mortgages granted within the interval.
Paragon suggests landlords are investing within the space to cater to the big numbers of NHS workers and powerful scholar market
A brand new entrant into the list, PL4 in Plymouth is the realm that noticed the second highest ranges of funding by BTL landlords in the course of the interval.
Similar to Cardiff Plymouth has three universities offering landlords with a dependable stream of term-time tenants, along with key staff employed on the Mount Gould Hospital positioned in PL4.
Rental yields are one other facet possible drawing landlords to PL4 with landlords in a position to generate annual common returns of 10.2%, the best of all hotspots on the list.
Taking the third podium place is LE11 in Loughborough, final 12 months’s eighth hottest postcode for landlord purchases, attaining common annual rental yields of 8.0% in the course of the interval.
Sharing similarities with many of the opposite hotspot places, a key driver of demand is offered by college students and enormous native workforces.
NG7 in Nottingham retained its place because the fourth hottest BTL funding postcode.
Other postcodes that additionally featured amongst Paragon’s top funding places for a second-year operating are Stoke-on-Trent’s ST4, Birmingham’s B29 and M14 in Manchester which fell from the top spot in 2024 to eighth this time round.
(*10*)
Weighted rental yield
Most widespread sort of property
CF24 – Cardiff
8.9%
Terraced House
PL4 – Plymouth
10.2%
Terraced House
LE11 – Loughborough
8.0%
Terraced House
NG7 – Nottingham
8.5%
Terraced House
GL1 – Gloucester
9.6%
Terraced House
HU5 – Hull
9.3%
Terraced House
LS6 – Leeds
8.2%
Terraced House
M14 – Manchester
8.1%
Terraced House
B29 – Birmingham
7.7%
Terraced House
ST4 – Stoke-on-Trent
10.1%
Terraced House
Paragon Bank managing director Louisa Sedgwick says: “Looking at our lending knowledge masking the 12 months to the top of June, we are able to see similarities in landlord funding methods.”
“Our knowledge additionally reveals that landlords usually buy properties in bigger city or cities and inside comparatively shut proximity to universities or giant native employers, benefitting from robust and secure demand.”
“This help of greater training and healthcare, along with essential sectors comparable to software program, manufacturing and logistics, highlights the often-overlooked contribution of the PRS to the UK financial system.”
