Cardiff’s CF24 postcode has been revealed as the top BTL hotspot in the first half of 2025, according to new research from Paragon Bank.
Analysis of the bank’s lending data over the 12 months to the end of June has shown CF24 attracted the highest level of BTL investment over this period.
In this area, over four in 10 properties — or 42% — are privately rented with average rental yields of 8.9%.
Plymouth’s PL4 was a new entrant on this list, as it recorded a surge in BTL investment activity over this period.
PL4 also has the highest weighted rental yield in the top 10 list at 10.2%.
LE11 in Loughborough took the third spot, with a weighted rental yield of 8%.
In order, other postcodes on the list were found in Nottingham, Gloucester, Hull, Leeds, Manchester, Birmingham and Stoke-on-Trent.
In all of these postcodes, terraced houses were found to be the most common type of property.
“Our data also shows that landlords typically purchase properties in larger towns or cities and within relatively close proximity to universities or large local employers, benefitting from strong and stable demand,” said Louisa Sedgwick, managing director at Paragon Bank.
“This support of higher education and healthcare, in addition to important sectors such as software, manufacturing and logistics, highlights the often-overlooked contribution of the PRS to the UK economy.”
