While 2023 was a subdued year for property investment, 2024 has started on a more confident footing.

Affordability is returning to the market, and house prices have increased month-on-month four consecutive times (according to the Halifax House Price Index), reaching 1.3% in January. This represents a 2.5% growth since January 2023 – the highest annual rise for 12 months.

But that does not mean investors can just rush back into the market and purchase a property anywhere, expecting to make a profit.

Certain areas in the UK have much higher property values than the national average, such as London. The capital has an average property price of £727,023, according to the latest figures HM Land Registry UK House Price Index. The national average property value currently stands at £284,950.

While rents may be higher in London than in the rest of the UK, the astronomical property prices mean rental yields remain low in the capital. Coupled with higher mortgage costs, increased energy bills and a desire among tenants to move away from the capital due to financial constraints, it is easy to see why many buy-to-let landlords choose to look further north once they’ve done their property market research.