UK Buy-to-Let:

Where are the key buy-to-let hot spots in the UK? Which parts of the country provide the best rental yields and capital appreciation?

This index report gives a quick overview of what buy-to-let investors can currently expect in terms of return on investment.

Online mortgage lender and investment specialist LendInvest has published its BTL Index findings at June 2017, ranking each postcode area around England and Wales based on a combination of four critical metrics: capital value growth, transaction volumes, rental yield and rental price growth.

- Advertisement -

Key findings for June 2017

  • Luton in North West London reclaims top spot
  • Previous table-topper Romford drops to tenth due to a 2.13% decrease in capital gains and falling rental yields
  • Manchester breaks into the Top 10 following impressive rental price growth
  • Top 10 is evenly split between Conservative and Labour voting postcodes
  • Clear correlation in high capital gains towns voting Conservative and areas with high rental yields voting Labour

Christian Faes, Co-Founder and CEO of LendInvest, comments:

“Against a backdrop of all the political upheaval the country has endured in the last quarter, it isn’t surprising to see some significant changes in the performance of postcodes against one another.

“We’ve seen last quarter’s top performing postcode, Romford, fall nine places; while Manchester – unofficial home of the Northern Powerhouse – ascended to the Top 10 for the first time.

“These shifts, however, are more isolated than systemic and the fact that there has not been a greater shakeup in the Top 10 buy-to-let postcodes signals the durability and resilience of the UK property market.”

The Top 10 buy-to-let postcodes

Yield Capital gains Rental price growth Transaction volume growth
Luton 4.54% 12.83% 7.37% -10.40%
Stevenage 4.05% 11.64% 7.47% -9.40%
Rochester 4.55% 12.34% 5.45% -9.40%
Colchester 4.29% 14.14% 4.14% -11.16%
Dartford 4.37% 13.61% 3.92% -10.94%
Peterborough 4.71% 9.04% 6.98% -10.67%
Southend-on-Sea 4.30% 12.37% 3.89% -10.26%
Manchester 6.11% 7.58% 7.53% -12.41%
Canterbury 4.36% 9.34% 6.62% -11.49%
Romford 4.81% 14.42% 1.28% -11.67%

 

The Bottom 10 buy-to-let postcodes

Yield Capital gains Rental price growth Transaction volume growth
Sunderland 5.79% 0.75% -0.5% -8.65%
Lancaster 4.28% 2.10% -0.3% -10.27%
Darlington 4.19% 0.47% -0.2% -8.29%
Preston 4.35% 0.26% -0.4% -9.75%
Llandudno 4.56% 0.88% -0.9% -9.07%
Plymouth 4.12% 3.14% -2.6% -10.21%
Western Central London 3.75% 3.18% -3.4% -20.36%
North West London 3.70% 3.84% -3.9% -16.01%
West London 2.94% 1.74% -3.0% -18.95%
Galashiels 3.98% 1.60% -6.2% -12.54%

 

The Top 10 postcodes that voted Conservative

Yield Capital gains Rental price growth Transaction volume growth
Stevenage 4.05% 11.64% 7.5% -9.40%
Rochester 4.55% 12.34% 5.4% -9.40%
Colchester 4.29% 14.14% 4.1% -11.16%
Dartford 4.37% 13.61% 3.9% -10.94%
Southend-on-Sea 4.30% 12.37% 3.9% -10.26%
Romford 4.81% 14.42% 1.3% -11.67%
Chelmsford 3.96% 12.44% 3.3% -10.25%
Northampton 4.68% 9.64% 4.8% -11.23%
Swindon 4.10% 9.46% 5.0% -10.49%
St Albans 3.56% 11.30% 3.9% -12.48%

 

The Top 10 postcodes that voted Labour

Yield Capital gains Rental price growth Transaction volume growth
Luton 4.54% 12.83% 7.4% -10.40%
Peterborough 4.71% 9.04% 7.0% -10.67%
Manchester 6.11% 7.58% 7.5% -12.41%
Canterbury 4.36% 9.34% 6.6% -11.49%
Bristol 4.45% 10.34% 4.8% -10.82%
Coventry 4.95% 8.49% 5.6% -10.49%
Ipswich 4.02% 11.77% 3.2% -10.86%
Newport 4.79% 5.52% 6.8% -8.83%
Ilford 4.37% 13.94% 0.9% -14.63%
Leeds 4.77% 5.97% 6.4% -9.59%

 

LendInvest is a leading online mortgage lending and investing business. In 2013, the company was spun out of Montello, an offline bridging finance lender since 2008. Today LendInvest provides over 10% of all short-term property finance in the UK.

To date LendInvest investors have invested in over £1 billion of loans made to borrowers who have bought, built or renovated almost 4,000 residential properties in more than 120 English towns and cities.

LEAVE A REPLY

Please enter your comment!
Please enter your name here