Summer's on it's way - time for some BTL hotspots!

A new study has been released derailing the very best – and worst – places to invest in BTL property.

The study, pulled together by rankings firm LendInvest, examined postcodes across England and Wales, and studies the market based on a combination of capital value growth, transaction volume, rental yield and rental price growth.

Colchester in Essex scored the top spot, scoring a yield of 3.71%m capital gain of 9.98%, rental price growth of 3.41% and sale volume growth of 2.79%.

The rest of the tables looked like this:

Top ten buy-to-let postcodes

YieldCapitalRental Price GrowthTransaction Volume Growth
Colchester3.71%9.98%3.41%2.79%
Northampton4.12%10.02%2.38%
1.53%
Leicester3.90%7.74%4.35%2.63%
Luton3.97%8.60%3.72%1.65%
Birmingham4.60%6.70%3.91%3.30%
Manchester5.42%6.28%3.71%2.33%
Ipswich3.51%8.09%3.11%3.51%
Brighton3.72%5.32%4.99%2.81%
Rochester3.92%7.18%3.24%1.77%
Norwich3.70%7.75%2.70%1.88%


Bottom ten buy-to-let postcodes

YieldCapitalRental Price GrowthTransaction Volume Growth
East Central London2.90%-3.76%-1.1%-1.73%
Durham4.39%-2.07%-3.0%1.48%
Halifax4.06%-1.82%-0.5%4.41%
Kingston-upon-Thames2.99%2.32%-2.3%1.38%
Cleveland4.26%-0.53%-0.5%2.84%
Watford3.23%3.20%-1.9%1.14%
West London2.68%3.38%-0.9%-0.49%
South West London2.93%3.13%-1.3%-0.78%
Ilford3.59%2.97%-1.9%3.39%
Crewe3.69%1.93%0.1%0.87%

We don’t subscribe to the idea of a mass house price growth slowdown throughout the country. Instead we wanted the Index to show us where the slowdown is hitting hardest, and where the opportunities continue to abound for UK landlords and property investors alike. Predictions for the overall growth of the housing market remain positive for the year ahead but this quarter’s Index indicates that house price growth slowdown is impacting on different regions to different degrees. There are reasons to be cheerful in many places around the country. Looking at the South West and the Midlands in particular, we can see modest slowdown occurring that’ll keep market activity buoyant.

Ian Boden, sales director at LendInvest

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