London was once the crown jewel of UK property investment. For years, flats in the capital were snapped up quickly, with buyers confident in long-term capital growth. But today, that narrative is breaking down.
With stagnant prices, poor yields, and growing leasehold headaches, many London flats are no longer the solid investment they once were. If you’re looking to build real, reliable income through property, it may be time to look beyond the capital.
At Lifestyle Property Group, we help investors tap into the high-yield, lower-risk markets of Northern England. Below is why that approach is making more sense than ever.
Leasehold Flats: A Legal and Financial Headache
One of the biggest issues plaguing the London flat market is leasehold ownership. Many buyers, particularly first-timers, don’t realise they’re not buying the property outright, they’re buying a lease that comes with a ticking clock.
Once that lease dips below 80 years, you’re faced with:
Expensive and complex lease extensions
A reduced resale value
Difficulty remortgaging
Risk of buyer hesitation
Even with proposed leasehold reforms, many flats remain tied up in costly and outdated agreements. Add in skyrocketing service charges and ground rents, and you’ve got an investment that’s far from passive.
In contrast, freehold and long-leasehold homes in northern cities are typically simpler, cheaper to run, and far more attractive to buyers and tenants alike.
London Flat Prices Are Falling — Or Standing Still
The numbers don’t lie: the value of many flats in London has either flatlined or declined over the past few years. In some cases, flats bought in 2016 or 2017 are now worth less than their purchase price.
Combine that with:
Slower demand from international buyers
Cautious lending due to leasehold issues
A cooling post-COVID market
… and you have a recipe for weak capital growth.
Compare this to cities like Leeds and Sheffield, where investors can purchase well-located houses for under £150,000 — and still benefit from regeneration, growing demand, and year-on-year value increases.
Learn more about why investing in UK property remains one of the most effective ways to grow your wealth, especially in Northern cities.
Low Yields and Rising Costs Make London Harder to Justify
While London rents are high, the yields often don’t stack up when you account for:
High purchase prices
Service charges and maintenance
Letting voids
Management fees
Many landlords are left with net yields under 3%, and rising costs are only tightening the squeeze.
In the North, the story is different. Yields of 5–7% are common, and properties are more affordable to begin with. At Lifestyle Property Group, we focus on identifying high-demand postcodes with strong rental performance and stable long-term tenants.
The result? Sustainable monthly cash flow, not just speculative capital gains.
ONS data shows that regions like Yorkshire and the Humber have seen stronger year-on-year growth than London in recent quarters.
While on the surface, cities like Manchester and Liverpool seem to offer better returns, they are much further along in their property market cycles. As a result, their future growth potential is becoming increasingly limited. On the other hand, cities like Leeds and Sheffield are still in the earlier stages of their maturity cycle, which means they offer much more room for long-term capital growth. It is important that Investors look at the overall return, including the potential for capital growth over the next decade when choosing their investment location.
Who Will Buy Your Flat in 10 Years?
Flats, especially in high-density developments, are harder to sell in a cooling market. Many don’t appeal to families or second-time buyers, who prefer houses with outdoor space and room to grow.
That limits your exit strategy.
Houses in regional cities, on the other hand, appeal to a broader range of buyers and tenants, from young families to professionals. They’re often located near good schools, transport links, and growing local economies — making them more resilient over time.
A Better Way to Invest — Hands-Free, High-Yield, and Northern
At Lifestyle Property Group, we help investors ditch underperforming London properties and start building portfolios in thriving northern cities.
We handle everything from sourcing the deal, managing refurbishments, finding tenants, and overseeing property management. It’s an end-to-end, fully managed service designed for busy professionals and hands-off investors.
Whether you’re just starting out or scaling up, we’ll build a strategy that fits your goals, your budget, and your timeline.
Final Thought: The Smart Money Is Moving North
If you’re sitting on a flat in London that’s underperforming, or you’re considering your next step as an investor, now’s the time to rethink your approach.
With stronger returns, simpler ownership structures, and lower entry points, the North offers a smarter way to grow your wealth through property.
👉 Book Free Consultation and speak to our team today.
