In an increasingly competitive rental market, investors are returning to fundamentals when evaluating buy-to-let opportunities. While headline yields and capital growth projections still play a central role, the most successful landlords are taking a broader view, one that factors in location, tenant demand, regulatory risk and long-term resilience.
Here are five key elements to consider when assessing a buy-to-let property in the current UK market.
1. Tenant Demand and Demographics
Understanding who your tenants will be is the foundation of any successful rental investment. Are you catering to professionals, students, families, or retirees? Each group comes with its own expectations, tenancy durations and maintenance implications.
In city centres like Manchester and Liverpool, rising graduate retention and growth in digital sectors have expanded the professional renter base. These tenants typically look for well-located, high-spec properties near transport hubs. In contrast, suburban areas or commuter towns may attract families seeking larger homes and outdoor space.
Data from Rightmove (Q1 2025) shows that average time on market for 2-bedroom city apartments in the North West is just 18 days, compared to over 30 days in less central postcodes. This underlines the importance of buying where demand is consistently strong.
According to Alan Evans, operations director at Doran Estates, a property investment agency active across the North West, “Investors often underestimate how hyper-local demand can be. A five-minute walk can separate an underperforming property from one that consistently lets within days. Understanding tenant migration patterns is key.”
2. Rental Yields and Net Return
Gross rental yield remains a useful starting point, but it is net yield that paints a clearer picture of profitability. This includes factoring in service charges, maintenance, insurance, agency fees and, where applicable, void periods.
As of June 2025, gross yields in core regeneration zones like Salford Quays or Liverpool’s Baltic Triangle range between 5.5% and 7.2%, according to Zoopla. However, new-build flats with high service charges can see net returns drop below 4% if not carefully assessed.
Investors should request detailed running costs before completing a purchase. Buying in developments with proven occupancy histories, good management companies and modest communal fees often results in stronger long-term returns.
3. Regeneration and Infrastructure Investment
Buying in areas undergoing regeneration can significantly boost capital appreciation prospects but not all regeneration is created equal.
Government-backed projects such as Manchester’s Northern Gateway or the £5bn Liverpool Waters scheme carry more weight than speculative private developments without planning or funding in place. Look for signs of confirmed infrastructure investment: new schools, transport upgrades, commercial tenants and long-term masterplans supported by local authorities.
Over the past decade, areas adjacent to successful regeneration have outperformed their wider regions. For example, Land Registry data shows that properties in Ancoats, Manchester increased in value by over 110% between 2013 and 2024, compared to the city-wide average of 61%.
These uplifts are not immediate. Buy-to-let investors should consider a medium to long-term horizon for regeneration premiums to fully materialise.
4. Transport Connectivity
Whether urban or suburban, a property’s access to reliable and frequent transport remains one of the strongest indicators of rental appeal.
Proximity to a train station or tram stop often justifies higher rents and ensures consistent demand. In Greater Manchester, for example, properties within 750 metres of a Metrolink station command, on average, 12% higher rents compared to similar homes further afield, according to data from Transport for Greater Manchester.
As hybrid working continues to evolve, demand is focusing on properties that offer both lifestyle and connectivity. Tenants increasingly value quick access to city centres combined with local amenities and green space, a pattern reflected in the rising popularity of towns such as Stockport, Warrington and Preston.
5. Future-Proofing Against Regulation
The buy-to-let sector is facing growing regulation from energy efficiency standards to licensing and tax reforms. Smart investors are preparing for this by future-proofing their purchases.
The expected minimum EPC rating for all rentals in England and Wales is set to rise to C in the coming years. Properties with a D or E rating may require upgrades such as new boilers, insulation or windows potentially costing thousands of pounds.
Investors should also stay aware of local licensing schemes. In parts of Liverpool and Salford, landlords must register under selective licensing rules, which may include inspections and management conditions.
Buying a property that already meets or exceeds regulatory standards not only saves money but ensures uninterrupted lettability. As tenant expectations grow and environmental standards tighten, older stock without modernisation risks falling behind.
Final Thoughts
Buy-to-let remains a viable and often lucrative strategy in the UK property market, but it requires more diligence than ever before. The difference between a marginal and high-performing investment often lies in the detail: understanding tenant profiles, anticipating future costs, and selecting properties with long-term fundamentals, not just short-term yields.
For those seeking a partner with deep regional insight, Doran Estates offers guidance across acquisition, lettings and portfolio growth. Their work in key regeneration zones and established rental markets across the North West helps clients navigate complexity with confidence.
As the market evolves, so must investor strategy. With the right criteria in place and the right advisors by your side, buy-to-let can still deliver compelling results in 2025 and beyond.
