Property peer-to-peer platform LendInvest has launched an index on the UK buy-to-let property market.
The LendInvest Buy-To-Let Index, which will be published monthly and is freely accessible on LendInvest’s website, is taken from a range of proprietary sources of information and compiled by LendInvest’s data science team. The firm claims this information includes over a million data points (from the last month alone) from data provided by Zoopla; and data from the UK Land Registry.
LendInvest’s data science team have been able to calculate the average rental yield for all postcodes across the UK, and then broken this down by number of bedrooms.
The October index shows the average rental yield from buy-to-let property is currently 5.9%pa for a one-bedroom property, compared with a 4.6%pa rental yield for a three-bedroom property.
In addition, the average capital gain for buy-to-let property, over the last four years, has been 2.5% pa.
Over the last year, postcodes EC3, WC1 and WC2 have provided the highest total investment gains (year on year total gain of 25%), while the worst performing postcode in the UK, was L8 (Liverpool).
Christian Faes (pictured), LendInvest CEO, said: “The LendInvest Buy-To-Let Index is consistent with our whole ethos at LendInvest – providing investors with quality information, and bringing transparency to what is often an opaque market.
“We’re aiming to provide investors, on both sides of our peer-to-peer marketplace, with as much information as possible on the UK buy-to-let market. We are keen to ensure that both our borrowers and our lenders are making sensible and informed investment decisions.
“The LendInvest Buy-To-Let Index shows that buy-to-let property is not always a great investment. There are many postcodes across the country that have experienced negative capital gains. The LendInvest peer-to-peer platform provides investors the opportunity to obtain a very decent return, lending secured against property, but without the hassle and risks associated with direct property investment.”