Editor's note: This brief was summarised by The Property AI Newsroom from a report by Landlord Today. Read the original article for full details.

Landlords Prefer Local Investment as Buy to Let Strategy Shifts

Professional landlords are increasingly choosing to invest in markets they know best rather than spreading their portfolios across the UK, according to Redwood Bank.

The bank's review of landlord investment patterns between 2021 and 2026 found that professional investors are becoming more concentrated within their home regions. This trend has persisted despite a higher interest rates environment, regulatory reform and changing tenant demand.

What the research found

Redwood Bank's review found a shift in strategy among professional landlords: away from geographic diversification and towards concentration in regions where they already have a presence and, presumably, familiarity. The review covered the period from 2021 to 2026.

The backdrop is notable. Landlords have faced a higher interest rates environment, ongoing regulatory reform and changing tenant demand over this period — pressures that might have been expected to reshape investment behaviour in other directions. According to the research, professional investors have nonetheless continued to concentrate within their home regions.

What this means for agents and clerks

For letting agents and inventory clerks, the reported shift towards locally concentrated portfolios points to a client base that is increasingly operating in the markets they know best. The findings come from Redwood Bank's review of landlord investment patterns, as reported by Landlord Today.

The report does not set out regional-level detail in the material summarised here, so agents should read the original article for the full findings before drawing operational conclusions.

Source of the findings

The research was published by Redwood Bank, which reviewed landlord investment patterns between 2021 and 2026. The story was reported by Landlord Today.

The source material does not report specific statistics, regional breakdowns or quotes, so this brief confines itself to the headline finding and its stated context.

Agents and inventory professionals working with portfolio landlords may wish to consult the original report for any further detail on how investment patterns changed across the five-year period reviewed.