Where are the best performing buy-to-let postcodes?

The latest quarterly research index released by LendInvest has revealed the current top-ten locations for buy-to-let investors.

Interestingly, the top-ten was found to be dominated by postcodes in the South East.

Buy-to-let hotspots

Data from the investigation shows that Luton in Bedfordshire took the top spot, with rental prices increasing by nearly 10%-the biggest rise in Britain.

Despite Enfield in North London ranking third overall, this location saw the biggest capital gains at 17.4%.

Investors looking to take out landlord insurance on a property should consider these locations, found to be the top-performing buy-to-let postcodes in the third quarter of 2016:

Location 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%
Where are the best performing buy-to-let postcodes?

Where are the best performing buy-to-let postcodes?

Factors

Christian Faes, Co-Founder and CEO of LendInvest noted: ‘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.’[1]

‘However, it’s certainly not the only thing to look out for. Investors also need to measure up the prospects for rental price growth, how active the local market is and the overall rental yield. Areas that perform well in all of these metrics are winners for property investors,’ Faes added.[1]

[1] http://www.propertyreporter.co.uk/landlords/where-are-the-current-top-ten-btl-postcodes.html

 

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