The majority of London-based landlords, 59 per cent, invest outside of the capital, according to Hamptons monthly lettings index.
According to the firm, historically, landlords in London do not look far afield for their buy-to-lets. However, Hamptons says that due to high house price growth and a clampdown on landlord taxation, many are looking to other regions of Great Britain to buy in.
The data shows that the average landlord buying in London in the year to March 2019 faced a £24,600 stamp duty bill, compared to £5,330 outside the capital.
Furthermore, the figures show that in the last 12-months, 34 per cent of London-based investors bought BTL properties in the Midlands and the North, up from 14 per cent in 2015.
The most popular region outside of the capital for London-based landlords to purchase a BTL property in was the South East, at 11 per cent. This was followed by the East Midlands and the East of England, with both recording 10 per cent.
Additional data provided by Hamptons shows that rental prices in Great Britain rose 1.9 per cent in the year to March, from £950 to £969. This was driven by a 3.7 per cent rise in Greater London.
Aneisha Beveridge, Head of Research at Hamptons International, said: “Following the tax hike, landlords have been adapting their strategy to find new ways to make their returns.
“Lower entry costs and higher yields outside of the capital are enticing investors to look further afield than they have previously.
“Following a sluggish 2018 London rents reached a record high in March.
“The average cost of a new let in London rose to £1,737 a month in March, 2.3 times more than the average rent outside the capital.
“Meanwhile every region in Great Britain recorded rising rents last month other than Scotland.”