With one of the strongest economic centres in the world and the offer of promising job opportunities at a time where other employment markets are struggling, London continues to attract investors and residents from around the UK - as well those from Europe.

Yet while the capital is a strong area for investment in residential properties as landlords look to take advantage of the high demand for rented accommodation in the city, it seems that the rising cost of doing so is now forcing many to look elsewhere.

That's according to Charlie Cunningham, chief executive at FreshStart Living, who says that prices in London are squeezing profit margins to the point that investors are considering the benefits of other regions in a bid to get better value for their money.

"We have experienced a growing interest from people looking to invest in the north-west in recent years," he said.

"The entry level into London is just too high and more investors are realising this and turning to the likes of Manchester and Salford, because properties are more affordable and they can get more for their money."

As cheaper properties represent a better opportunity for investors to maximise their profits, it seems that areas outside of London are set to become increasingly popular if the cost of investing in the capital continues to increase.

And if rental yields in the north-west consistently outperform those in the south, the shift could be a substantial one as landlords realise that properties in the region can prove far more profitable than those in the capital, although much will depend on the impact that increased competition has in cities such as Manchester.

But no matter where investors are choosing to expand their portfolios, it's vital that they protect their properties with landlord insurance policies to ensure that any nasty surprises don't threaten their budgets.