Manchester has retained its spot as the best city for landlord investment, according to the latest BTL City Tracker from Aldermore.
The annual tracker analyses cities based on average total rent, best short-term and long-term returns, lowest number of vacancies and percentage of the city renting.
Manchester has retained this top spot and was the highest ranking city in 2024.
The second and third highest ranking cities, Glasgow and Coventry respectively, also held the same places in the top 10.
Derby took the ninth spot in the list after rising 12 spots from the 2024 tracker, the highest movement in that time.
Portsmouth was the city that has slipped the most, falling two places from the previous list to eighth place.
Overall, the average rent per room has continued to increase from 2024 by 7.3% (£518 in 2024 vs £556 in 2025) and short-term returns increased from 6.9% in 2024 to 7.4% in 2025.
Commenting on the results, Aldermore director of mortgages Jon Cooper attributed the “noticeably less reshuffling” within the top 10 to greater stabilisation in the PRS.
“There’s no doubt that the operating environment has become more complex. Increased regulation and evolving tenant expectations mean landlords need to be far more hands-on, regularly reviewing their portfolios, reassessing yields and ensuring their properties remain competitive,” added Jon.
“However, the demand for well-located rental homes continues to outstrip supply in many cities, rental income has held firm year-on-year, and competition for quality stock remains high.
“For landlords prepared to adapt and take a long-term view, there are still resilient and attractive returns to be found.”
