London has emerged as the fastest-growing buy-to-let market in the UK, showing a 13% rise in new landlords taking out insurance between 2023-2024. This marks a sharp increase from the 4.11% growth the previous year in London.
In contrast, Glasgow, which led in 2022-2023 with 11.95% growth, dropped to the bottom of the chart in 2023-2024. It saw only 7% growth in new policyholders.
Julie Fisher, UK chief executive at Simply Business, said, “2025 will be a game-changer for UK landlords, with new regulations and rising costs reshaping the market.”
She added, “It’s incredibly telling that we’re starting to hear landlords talk about availability of tradespeople in the context of their investment decisions – driven in large part by the new minimum Energy Performance Certificate (EPC) regulations.”
Fisher highlighted that half of landlords must make improvements to achieve an EPC rating of C. She also noted that 34% of landlords will need to spend up to £10,000 to comply with the rules.
“Though challenges remain, the importance and resilience of landlords – and the market – should not be underestimated,” Fisher stated.
She emphasized, “Rental demand remains high as people seek flexible housing to suit their studies and work, and landlords that are able to follow and adapt to the changes effectively can absolutely still find opportunities for steady rental income and capital growth, with a vital role to play in the UK housing market.”
Almost 71% of landlords believe the Labour government will negatively impact the buy-to-let market. This sentiment comes after the buy-to-let stamp duty surcharge increased from 3% to 5% in the Autumn Budget.