Landlords based in London are increasingly opting to invest in properties in the north of England as they seek more lucrative opportunities beyond the capital, according to a report.

Approximately two-thirds of London-based buy-to-let investors who made property acquisitions this year have chosen to do so in various other parts of the country, the Telegraph revealed.

The northern regions of England have particularly benefited from this trend, now constituting 24% of all purchases made by London-based landlords, the report said. This represents a substantial increase from the mere 1% observed a decade ago.

Aneisha Beveridge, head of research at Hamptons, told the newspaper that higher taxes imposed on landlords have diminished the profitability of the rental market, prompting them to explore opportunities further afield in search of more favourable deals.

“That means if you’re going to use a mortgage to fund a buy-to-let you really need to be buying one that has a much higher yield,” she said. “Naturally, that has pushed people further north where those returns are more likely to be available and achievable.”

According to Beveridge, the North East in particular is ripe for investment, with rental yields of 9.1% in contrast with 5.6% in London. She told the Telegraph that an investor with £100,000 at their disposal could potentially acquire one or even multiple properties in certain northern areas, which would not be a feasible option in the south.

Beveridge said: “You have got some of the areas in the North East where property prices have barely recovered from their 2008 lows. These are some of the more deprived towns in the country where a very large proportion of locals rent and where consequently high yields and higher investment returns are available.

“We saw London house prices rising quickly up until 2015 and then they have gone into this stagnation period. Up in the north, we’ve seen prices rising more. So investors there have had the best of both worlds over the last seven to eight years.”