UK house prices: The best and worst areas for buy-to-let investments in the UK revealed
Luton is the best place for buy-to-let investments in the UK, according to a new study.
The Bedfordshire area has enjoyed a 7.37 per cent increase in rental price growth, according to a research by specialist mortgage lender LendInvest which looked at each postcode area around England and Wales.
The research looked at a combination of four critical metrics: capital value growth, transaction volumes, rental yield and rental price growth.
Previous table-topper Romford drops to 10th place following a 2.13 per cent decrease in capital gains and falling rental yields. Meanwhile, Manchester entered the top 10 following impressive rental price growth of 7.53 per cent.
Read more: What the General Election results mean for house prices
Christian Faes, co-founder and CEO of LendInvest, said: “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 shake-up in the top 10 buy-to-let postcodes signals the durability and resilience of the UK property market.”
Read more: Where to buy? Here are 31 hotspots where house prices are set to soar
The Top 10 buy-to-let postcodes
|
|
Yield |
Capital gains |
Rental price growth |
Transaction volume growth |
|
Luton |
4.54 per cent |
12.83 per cent |
7.37 per cent |
-10.40 per cent |
|
Stevenage |
4.05 per cent |
11.64 per cent |
7.47 per cent |
-9.40 per cent |
|
Rochester |
4.55 per cent |
12.34 per cent |
5.45 per cent |
-9.40 per cent |
|
Colchester |
4.29 per cent |
14.14 per cent |
4.14 per cent |
-11.16 per cent |
|
Dartford |
4.37 per cent |
13.61 per cent |
3.92 per cent |
-10.94 per cent |
|
Peterborough |
4.71 per cent |
9.04 per cent |
6.98 per cent |
-10.67 per cent |
|
Southend-on-Sea |
4.30 per cent |
12.37 per cent |
3.89 per cent |
-10.26 per cent |
|
Manchester |
6.11 per cent |
7.58 per cent |
7.53 per cent |
-12.41 per cent |
|
Canterbury |
4.36 per cent |
9.34 per cent |
6.62 per cent |
-11.49 per cent |
|
Romford |
4.81 per cent |
14.42 per cent |
1.28 per cent |
-11.67 per cent |
The Bottom 10 buy-to-let postcodes
|
|
Yield |
Capital gains |
Rental price growth |
Transaction volume growth |
|
Sunderland |
5.79 per cent |
0.75 per cent |
-0.5 per cent |
-8.65 per cent |
|
Lancaster |
4.28 per cent |
2.10 per cent |
-0.3 per cent |
-10.27 per cent |
|
Darlington |
4.19 per cent |
0.47 per cent |
-0.2 per cent |
-8.29 per cent |
|
Preston |
4.35 per cent |
0.26 per cent |
-0.4 per cent |
-9.75 per cent |
|
Llandudno |
4.56 per cent |
0.88 per cent |
-0.9 per cent |
-9.07 per cent |
|
Plymouth |
4.12 per cent |
3.14% |
-2.6 per cent |
-10.21 per cent |
|
Western Central London |
3.75 per cent |
3.18 per cent |
-3.4 per cent |
-20.36 per cent |
|
North West London |
3.70 per cent |
3.84 per cent |
-3.9 per cent |
-16.01 per cent |
|
West London |
2.94 per cent |
1.74 per cent |
-3.0 per cent |
-18.95 per cent |
|
Galashiels |
3.98 per cent |
1.60 per cent |
-6.2 per cent |
-12.54 per cent |