LendInvest, an online marketplace for mortgages, has published the latest LendInvest Buy-to-Let Index report. The quarterly BTL Indes reviews 105 postcodes in England and Wales ranking four different characteristics: Rental Price Growth, Rental Yield, Transaction Volume, Capital Value Growth.
According to LendInvest, key findings for this most recent report indicate:
- Colchester (#1) again tops the charts as number one spot for BTL investment
- Stockport (#2) overtakes regional leader Manchester (#3), followed closely by Leeds at #11 signaling the increasing scope of investment opportunity in the North
- Midlands and Central England postcodes continue to climb the table as Wolverhampton (#7) and Peterborough (#8) break into the Top 10
- South Eastern cities lose momentum as long-term table topper Luton falls to #10 place
Ian Boden, Sales Director at LendInvest, says that with Brexit looming all eyes are on the performance of the UK property market:
“This quarter has returned some interesting results. Smaller towns in both the North and Midlands are making swift gains up the table to rival the typical hot spots in each region. Stockport has taken the lead over Manchester this quarter, and Harrogate is in hot pursuit of its larger neighbour Leeds. Looking towards the center of the UK, Midlands cities Wolverhampton and Peterborough have smashed into the Top 10, joining successful regional capital Birmingham. The growing opportunity for BTL investors in these regions reflects a knock on effect of investment in these key cities.”
The Top 10 buy-to-let postcodes
|
Yield |
Capital gains |
Rental price growth |
Transaction volume growth |
|
|
Colchester |
3.60% |
3.61% |
6.50% |
-6.24% |
|
Stockport |
3.75% |
6.34% |
3.18% |
-7.57% |
|
Manchester |
5.29% |
4.26% |
3.42% |
-8.04% |
|
Birmingham |
4.49% |
4.67% |
3.44% |
-7.47% |
|
Canterbury |
3.66% |
7.83% |
0.64% |
-8.10% |
|
Coventry |
4.17% |
6.36% |
1.31% |
-7.43% |
|
Wolverhampton |
4.15% |
4.47% |
2.90% |
-7.20% |
|
Peterborough |
4.04% |
4.02% |
3.34% |
-7.11% |
|
Enfield |
3.62% |
3.35% |
4.25% |
-8.15% |
|
Luton |
3.70% |
5.31% |
2.17% |
-7.73% |
The Bottom 10 buy-to-let postcodes
|
Yield |
Capital gains |
Rental price growth |
Transaction volume growth |
|
|
East Central London |
2.84% |
-11.63% |
2.17% |
-6.54% |
|
Llandrindod Wells |
2.97% |
2.56% |
-8.47% |
-8.72% |
|
Slough |
2.94% |
-1.86% |
-2.76% |
-8.91% |
|
Durham |
4.40% |
-4.32% |
-1.53% |
-6.37% |
|
Cleveland |
4.16% |
-1.51% |
-3.14% |
-5.58% |
|
Crewe |
3.59% |
-2.16% |
-0.87% |
-8.00% |
|
Galashiels |
3.45% |
-1.72% |
0.50% |
-8.31% |
|
Hull |
3.90% |
-4.71% |
2.52% |
-6.64% |
|
Telford |
3.87% |
-3.14% |
2.02% |
-8.19% |
|
South West London |
2.93% |
-1.76% |
1.74% |
-8.47% |