Key Highlights

Purchasing a buy-to-let (BTL) property in a high-growth area can provide rental income, build equity, and offer more financial flexibility, thereby being an ideal investment decision for first-time buyers.

The Struggle of First-Time Buyers in Expensive Cities

For many young professionals, the dream of homeownership in London or other major cities feels increasingly out of reach. With high property prices and rising living costs, saving for a deposit is daunting, and even those with strong salaries often find themselves priced out of the areas they want to live in.
But what if there was another way to get on the property ladder – one that could not only generate income but also help build long-term wealth? Rather than buying a home to live in, more first-time buyers are realising that investing in a buy-to-let (BTL) property in a high-growth city can be a smarter move.

Why Buy-to-Let Could Be a Better First Step

Robert Kiyosaki, author of Rich Dad, Poor Dad, famously said: “The rich buy assets. The poor only have expenses. The middle class buys liabilities they think are assets.” This principle is key when thinking about property. A home that you live in is a liability – it costs money each month and doesn’t generate income. But a buy-to-let property is an asset that works for you, generating rental income and appreciating in value over time.

Key Benefits of Buying an Investment Property First

Investing in a buy-to-let (BTL) property allows your money to work for you, as tenants cover your mortgage repayments while you benefit from capital appreciation. Purchasing in a high-growth area can accelerate this appreciation, enabling you to remortgage and release equity for your next investment. This strategy also provides flexibility, allowing you to rent where you want to live while investing where returns are highest – ideal for those considering job changes, travel, or even relocating abroad. Additionally, investing in regeneration hotspots often yields higher returns than low-growth areas such as London. For example, Savills forecasts that the North West will experience 28.8% capital growth over the next five years, significantly outpacing London’s projected growth.

Why Buy-to-Let Works Differently for First-Time Buyers

Many first-time buyers assume that obtaining a buy-to-let (BTL) mortgage is more challenging, but in some ways, it can actually be easier. Unlike residential mortgages, BTL mortgages are assessed based on the property’s rental income potential rather than solely on personal income. Additionally, many lenders are willing to offer BTL mortgages to first-time buyers, although they typically require a deposit of around 25%. Furthermore, purchasing a BTL property first can also help build equity, making it easier to secure a residential mortgage later when you are ready to buy a home for yourself.

Case Study: Ryan’s First Step to Financial Freedom

Meet Ryan, a 28-year-old pilot who was torn between buying his first home or making another financial move. Despite earning a solid salary, he found himself priced out of London’s best areas. He had saved £100,000 for a deposit but wasn’t sure where to invest.

During his time studying in Manchester, Ryan witnessed the city’s rapid transformation. With the highest student retention rate outside London and one of the fastest-growing economies in the UK, he recognised the city as the ideal place to invest. He chose to purchase a two-bedroom luxury apartment in a central development, set for completion in Q4 2026. The property’s prime location and high-end amenities ensure strong tenant demand and minimal vacancy. At the same time, projected capital growth in the North West is expected to outperform London, allowing him to build equity by the time of completion. Additionally, the flexible payment structure required just a 10% deposit on exchange, with the remaining balance due upon completion, making it a strategic and accessible investment choice.

Why Ryan Chose NPG

Ryan was particularly impressed by NPG’s expertise and full-service approach:
“The consultant really understood my situation and came up with a solution-based approach that was easy to understand. They took the time to explain the medium and long-term strategy and why this off-plan option was the perfect foundation for my portfolio.”

NPG also provided:

• Developer track record analysis to ensure his investment was safe.
• A long-term growth plan, showing how this first BTL purchase could lead to multiple future investments.
• Full management services, meaning Ryan doesn’t have to worry about day-to-day operations—even if he moves abroad in the future.

Conclusion: A Smarter Path to Homeownership

For many young professionals, purchasing a home first may not be the most strategic financial move. On the other hand, starting with an investment property allows you to generate passive income and benefit from capital growth, while using leverage to expand your portfolio before committing to a long-term home. This approach also provides greater lifestyle flexibility, enabling your investments to work for you. If you’re interested in following the same path as Ryan, contact NPG today to explore the best investment opportunities in high-growth UK cities.

Why Work with North Property Group?

North Property Group is a premium property investment agency and lettings agency focusing on premium UK real estate. We specialise in helping first-time investors build wealth through strategic property investments and guiding you through every stage of the investment lifecycle. With our end-to-end support, you can enjoy a hands-off experience, backed by thorough developer track record analysis to ensure your investment is secure.

Book a free consultation with us today to start your journey of investing in off-plan UK property.