LendInvest has published its latest quarterly research index on the UK buy-to-let market.
The new format ranks each postcode based on the following metrics: capital value growth, transaction volumes, yield and rental price growth.
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%.
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% |
Christian Faes, 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.
