London has re-emerged as the most attractive region for UK property investors, according to Handelsbanken’s 2025 Property Investor Report. After slipping to fifth place in 2024, the capital has surged back to the top – cited by nearly half of surveyed landlords and investors. The findings point to a broader shift in strategy, as professionals refocus on long-term fundamentals and portfolio resilience in a changing market.
- Capital rises from fifth place in 2024 to reclaim the number one position.
- 54% of investors plan to expand their portfolios in the next 12 months.
- East of England holds strong at second place with 42% investor interest.
- South East climbs to third, with interest rising from 21.5% to 34%.
- Yorkshire & the Humber drops sharply from 12.5% to 4.5% investor preference.
Original article source: Property Industry Eye
London’s return to the top spot is not a surprising shift. In uncertain markets, investors tend to lean back on fundamentals: resilient demand, strong infrastructure, and international relevance. The capital offers all three in abundance.
While regional markets have performed well in recent years, the pace of capital growth and tenant demand in those areas has started to level out. London, by contrast, appears to be reasserting its role as the market’s long-term anchor, not because it’s “booming,” but because it remains deeply bankable.
This rebound also signals that professional investors are looking beyond short-term affordability pressures. For landlords and portfolio buyers, the focus is turning toward value retention, rental security, and long-term stability – areas where the capital still holds a natural advantage.
The increase in investment appetite for the East and South East shows that proximity to London continues to matter. These areas benefit from spillover demand, commuter routes, and lifestyle-driven relocation, making them attractive extensions of the capital’s appeal.
Regional disparities like the drop in Yorkshire & the Humber don’t necessarily signal weakness, but they do reflect a narrowing of focus. This could open the door to opportunity in overlooked markets, provided the fundamentals stack up.
Ultimately, this is less about London “winning” and more about investors adjusting. In a shifting environment, stability holds premium value and London is still the benchmark.
