THE PROPERTY FILTER TAKE
Redwood Bank's analysis of 2021 to 2026 finds professional buy-to-let landlords increasingly buying in their home regions, with one of the biggest changes, 15.1 per cent, in the East Midlands.
Redwood's senior product manager says lenders need to understand a borrower's wider strategy and experience, not just the individual property. That matters if you hold 5 to 12 properties.
Consider writing down why each area in your portfolio earns its place, and you may wish to stress-test the rent on your next local purchase before you offer.
Buy-to-let landlords are increasingly buying in the regions they already know. Redwood Bank's review of landlord investment patterns between 2021 and 2026 found professional investors "becoming more concentrated within their home regions" (Redwood Bank). The East Midlands saw one of the biggest changes, at 15.1 per cent (Redwood Bank). PropertyWire reported the findings on 15 September 2026.
What did Redwood Bank's analysis find?
Redwood describes the East Midlands as seeing "an increase of 15.1 per cent of investors buying in their local area" over the past five years. The South West followed with a 14.2 per cent uplift (Redwood Bank). Wales went the other way. Redwood reports a 9.4 per cent drop in local investment there, as Welsh landlords extended their portfolios into the neighbouring South West.
Read those numbers carefully. The release does not say whether 15.1 per cent is a change in percentage points of a share or a relative rise in a count. Nor does it give a sample size or say which loans or purchases were measured. MPA describes the figures as "Redwood Bank's data".
Redwood's reading is that landlords now weigh operational expertise, local market knowledge and long-term investment quality, "rather than simply pursuing the highest headline yields". That is the bank's interpretation of its findings, not a measured comparison of yields.
Why does local knowledge matter to a portfolio landlord?
Tom Worbey, senior product manager at Redwood Bank, points to a harder operating climate. "Professional landlords are operating in a much more complex environment, with higher borrowing costs, greater regulation and increasing expectations around property management," he said (Redwood Bank).
In that climate, he called local knowledge "a genuine competitive advantage". Experienced landlords know what tenants want and have relationships with agents and contractors, he said. Redwood adds that this is especially important for HMO (house in multiple occupation) investors, given licensing nuances across local authorities. If you run shared houses, our HMO valuation calculator shows how a commercial valuation can work at refinance.
From a portfolio perspective, the yield trade-off is the interesting part. Redwood says landlords historically often had to choose between yield regions and growth regions. It argues rising rents and infrastructure investment have created locations closer to home that can deliver both. Our property investment strategies hub sets out how those two goals pull against each other.
What does this mean for your next refinance?
The lending angle is where this lands on your portfolio. "Assessing a landlord today isn't simply about looking at an individual property and a blanket portfolio check," Worbey said. Lenders need to understand "the borrower's wider strategy, their experience and why a particular investment makes sense for their business" (Redwood Bank).
MPA adds the regulatory frame. The PRA's Supervisory Statement SS13/16, published in September 2016, requires lenders to assess portfolio landlords, those with four or more mortgaged buy-to-let properties, across the whole portfolio. If you hold 5 to 12 mortgaged buy-to-lets, you are already inside that definition.
Redwood also notes many investors now operate through several limited company SPVs (special purpose vehicles, companies set up only to hold property). Our business and systems hub covers how portfolio landlords structure and run that side.
So a clear local thesis may help when you sit down with a lender. Before your next purchase, you may wish to run the rent through our free stress test calculator. It checks whether rent covers the mortgage at a higher notional rate.
Key takeaways
Redwood Bank's analysis of 2021 to 2026 found professional landlords becoming more concentrated within their home regions.
Redwood reports "an increase of 15.1 per cent of investors buying in their local area" in the East Midlands, and a 14.2 per cent uplift in the South West.
Wales showed a 9.4 per cent drop in local investment, with Welsh landlords extending into the South West (Redwood Bank).
Redwood's release does not state a sample size or whether its regional figures are percentage-point or relative changes.
Under the PRA's SS13/16 from September 2016, landlords with four or more mortgaged buy-to-let properties are assessed across their whole portfolio (MPA).
