By Charlotte Williams, Associate Director at Bradley Hall North West
For years, London has been perceived as the default destination for institutional property investment. But recent conversations with private equity firms suggest that assumption is increasingly outdated.
Following a meeting with a London-based private equity fund, one thing became immediately clear. Their growth strategy is not focused on the capital at all. Instead, their ambition is firmly rooted in the North of England, with a particular emphasis on Manchester and growing interest in cities such as Newcastle. Their objective is bold, to significantly scale HMO bed numbers by the end of 2026, and their confidence in northern markets is telling.
This shift highlights a wider trend we are seeing across the investment landscape. Institutional capital is flowing to regions where affordability, demand fundamentals and long-term scalability align. While London pricing continues to present barriers to entry and compressed yields, northern cities offer a more compelling balance of acquisition cost, rental demand and operational performance.
Manchester remains a standout. Its universities, graduate retention, expanding employment base and extensive regeneration pipeline continue to underpin strong demand for shared accommodation. At the same time, Newcastle and other northern cities are attracting attention due to similar dynamics, strong tenant demand, competitive pricing and improving infrastructure. For institutional investors seeking to deploy capital at scale, these markets provide opportunities that are increasingly difficult to replicate in the South.
What is particularly notable is the growing disconnect between perception and reality. Many still assume that smart money is concentrated in London. In practice, it is being strategically deployed across northern cities where investors can build and exit portfolios more efficiently, while maintaining attractive yields.
For existing HMO landlords, this evolving landscape presents both opportunity and choice. Those considering disposing of assets or entire portfolios may find that institutional demand has never been stronger in key northern markets. Conversely, landlords looking to optimise, refinance or expand can benefit from a clearer understanding of where the market is heading and how investor requirements are changing.
This is where local knowledge becomes critical. Bradley Hall is a full-service property consultancy working across the North of England, with additional offices in Birmingham and Oxfordshire. Our teams work closely with private investors, institutional buyers and lenders to provide insight-led advice across the full lifecycle of HMO investment. From acquisition and valuation through to portfolio disposals and strategic planning, our regional expertise allows clients to make informed decisions in rapidly evolving markets.
As investor confidence continues to build outside the capital, the North is no longer an alternative. It is a focal point. Understanding where capital is moving, and why, is essential for anyone active in the HMO sector today.
The conversation has shifted. The question is no longer whether the North presents opportunity, but how investors and landlords position themselves to capitalise on it.
If you are an HMO landlord considering a portfolio sale, exploring expansion, or simply want to discuss how institutional demand is shaping northern markets, now is the time to have that conversation.
Get in touch with the Bradley Hall team to discuss your options and gain insight into where the market is heading: https://www.bradleyhall.co.uk/branches/manchester/
