Buy-to-let (BTL) landlords are increasingly targeting smaller towns to buy properties in, according to recent analysis from Paragon Bank.

According to the bank’s data, aside from London and Manchester, completions during 2021 were highest outside the UK’s major city centres, in “secondary towns and cities.”

Completions in Milton Keynes spike 667% in 2021, compared to the previous year, while completions in Bristol increased 300%.

Completions in Manchester and Luton increased 300% and 258%, respectively.

They also accelerated substantially across Plymouth, Stoke, Northampton, Cardiff and Nottingham, where they spiked 183%, 157%, 133%, 70% and 64%, respectively.

In London, BTL completions increase 95% over the year.

“The strongest growth was not necessarily in the UK’s major cities. Aside from London and Manchester, the top 10 growth locations were in secondary cities or large towns,” says Paragon Bank director of mortgages, Richard Rowntree.

“The likes of Milton Keynes, Luton, Bristol, Northampton and Nottingham experienced strong double or triple-digit growth in completions during the year,” he adds.

The move comes as unaffordable housing in London continues to rise.

According to Rowntree, areas that had an increase in completion activity were within commutable distance of a major UK city and had vibrant universities and local economies.

“Landlords have been reacting to changing tenant demand and there is clearly demand for tenants to retain urban living, but perhaps targeting smaller towns and cities,” he says.