LendInvest BTL Index sees opportunities for Northern investment broaden

By Bridging Loan Directory 12th November 2018

LendInvest, the UK’s leading marketplace platform for mortgages, has released the latest LendInvest Buy-to-Let Index report.

Published quarterly, the LendInvest BTL 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.

Key findings for November 2018

Colchester (#1) again tops the charts as number one spot for BTL investment
Stockport (#2) overtakes regional leader Manchester (#3), followed closely by Leeds at #11 signaling the increasing scope of investment opportunity in the North
Midlands and Central England postcodes continue to climb the table as Wolverhampton (#7) and Peterborough (#8) break into the Top 10
South Eastern cities lose 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 BTL 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%