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.