Cardiff’s CF24 postcode attracted the very best degree of buy-to-let (BTL) funding throughout the 12 months to June 2025, Paragon Bank reveals, climbing from fifth place final yr to top the lender’s newest BTL hotspot checklist.
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 variety of BTL mortgages granted within the interval.
Paragon suggests landlords are investing within the space to cater to the big numbers of NHS employees and robust scholar market
A brand new entrant into the checklist, PL4 in Plymouth is the world that noticed the second highest ranges of funding by BTL landlords throughout the interval.
Similar to Cardiff Plymouth has three universities offering landlords with a dependable stream of term-time tenants, along with key employees employed on the Mount Gould Hospital positioned in PL4.
Rental yields are one other facet probably drawing landlords to PL4 with landlords capable of generate annual common returns of 10.2%, the very best of all hotspots on the checklist.
Taking the third podium place is LE11 in Loughborough, final yr’s eighth hottest postcode for landlord purchases, attaining common annual rental yields of 8.0% throughout the interval.
Sharing similarities with most of the different hotspot areas, a key driver of demand is offered by college students and huge 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 areas for a second-year working 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 kind 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 information protecting the 12 months to the tip of June, we are able to see similarities in landlord funding methods.”
“Our information additionally exhibits that landlords sometimes 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 assist of upper schooling and healthcare, along with necessary sectors equivalent to software program, manufacturing and logistics, highlights the often-overlooked contribution of the PRS to the UK economic system.”
