The latest LendInvest Buy-to-Let Index report has revealed that Colchester is once again the number one spot for buy-to-let investment.
Published quarterly, the index ranks 105 postcode areas around England and Wales based on a combination of four critical metrics: capital value growth, transaction volumes, rental yield and rental price growth.
It also found that Stockport has overtaken the regional leader, Manchester to move into second place.
The Midlands and central England postcodes continued to climb the table as Wolverhampton (#7) and Peterborough (#8) break into the top 10.
Meanwhile, south eastern cities have lost momentum as long-term table topper Luton falls to #10 place.
Ian Boden (pictured), sales director at LendInvest, said: “As we edge towards the new year, and subsequently the date we are due to leave the EU, all investor’s eyes are on the performance of the UK property market. This is a time where our data is our best ally in making the right choices for long term investment.
“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 buy-to-let investors in these regions reflects a knock on effect of investment in these key cities.
“Locking down a solid prediction of how the landscape will look into the New Year is no easy task. In this instance, we know it is best to let the data do the talking.”
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% |