LendInvest, the online property lending and investing business, has released its latest quarterly research Index on the UK Buy-To-Let market.

The revamped format ranks each postcode based on the following metrics: capital value growth, transaction volumes, yield and rental price growth.

Key findings

  • The top 10 is dominated by postcodes found in the South East, with Northampton the only exception.
  • Luton in Bedfordshire took top spot, with rental prices jumping nearly 10%, the largest increase in the country.
  • Enfield in North London was ranked third overall, but saw the largest capital gains at 17.4%.

The top 10 buy-to-let postcodes

Yield Capital gains Rental price growth Transaction volume growth
Luton 4.81% 13.63% 9.58% -4.71%
Stevenage 4.31% 14.78% 8.95% -9.81%
Enfield 4.76% 17.36% 2.21% -4.35%
Northampton 4.87% 8.11% 8.33% 4.38%
Dartford 4.78% 13.02% 7.98% -10.22%
Southend-on-Sea 4.56% 11.79% 5.95% -4.63%
Romford 5.26% 13.47% 2.48% -1.55%
Chelmsford 4.26% 12.15% 5.29% -3.96%
Southall 4.88% 14.01% 3.97% -10.36%
Twickenham 4.48% 15.49% 2.34% -9.16%
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Map can be downloaded here

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

“There are a host of different factors that investors have to take into account before buying a property. The big one is of course capital values – you want to buy a property that is going to increase in value during your ownership. The prospects for further house price growth is good – we still aren’t building anywhere near enough homes in the UK – but there are regional differences to take into account. As the LendInvest Buy-to-Let index highlights, the capital value growth seen in postcodes in the South East are significantly higher than those elsewhere in England and Wales.

“However, it’s certainly not the only thing to look out for. Investors also need to measure up the prospects for rental price growth, how active the local market is, and the overall rental yield. Areas that perform well in all of these metrics are winners for property investors.”

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