Cardiff attracted the most buy-to-let (BTL) investment in 2024, followed by Birmingham and Plymouth.
According to lending data from Paragon, Cardiff’s CF24 postcode was the most popular with landlord customers looking for a BTL investment.
This postcode covers Cathays and Roath, which are popular areas with students and present an opportunity for student lets. The average rental yield in the area stands at 8.7%.
The second-most popular area for BTL investment was B29 in Birmingham, which includes Bournville, Edgbaston and Selly Oak. The average rental yield comes to 7.5%.
Plymouth took the third spot for BTL investment with the PL4 postcode, with its popularity attributed to student and key worker markets. The average rental yield is 9.6%, which is the second highest among hotspot locations.
The BTL investment list is rounded out by Leeds, Nottingham, Manchester, Gloucester, Liverpool, Stoke and Nottingham again.

Five ways we’ve improved our Premier service
Sponsored by Halifax Intermediaries
Postcode | Weighted rental yield | Most common type of property |
CF24 – Cardiff | 8.7% | Terraced house |
B29 – Birmingham | 7.5% | Terraced house |
PL4 – Plymouth | 9.6% | Terraced house |
LS6 – Leeds | 7.9% | Terraced house |
NG7 – Nottingham | 8% | Terraced house |
M14 – Manchester | 9.1% | Terraced house |
GL1 – Gloucester | 8.8% | Terraced house |
L15 – Liverpool | 9.9% | Terraced house |
ST4 – Stoke | 7.8% | Terraced house |
NG3 – Nottingham | 8.7% | Converted flat |
Neil Smith, head of surveyors at Paragon Bank, said: “Looking at last year’s most popular postcodes amongst Paragon’s buy-to-let landlords highlights geographical concentrations of investment.
“Even though privately rented homes are in short supply all over the UK, landlords are strategic and often target locations with consistently high demand; cities where we see large transient populations, such as students and temporary workers, alongside more permanent residents like young professionals and families.”
He added: “There is also a notable propensity amongst buy-to-let landlords to invest in property types that can deliver strong yields, often terraced houses and houses in multiple occupation (HMOs).
“While serving distinct markets has advantages, it is wise to consider if a particular location could also appeal to other tenant cohorts to help investments remain profitable if there is a downturn in the primary market. The main takeaway here is to thoroughly research potential locations before jumping in with both feet.”