Colchester has been named the best place for buy-to-let investors in today’s market, based on a combination of capital value growth, transaction volumes, rental yield and rental price growth.
Colchester topped the latest buy-to-let index rankings firm LendInvest which covers 105 postcode areas in England and Wales with a yield of 3.71%, capital gain of 9.98%, rental price growth of 3.41% and sale volume growth of 2.79%.
Ranked in second place is Northampton, followed by Leicester, Luton, Birmingham, Manchester, Ipswich, Brighton, Rochester and Norwich.
At the other end of the scale, Crewe, Ilford, much of capital and London commuter towns, such as Dartford, Romford and St Albans, performed poorly.
Ian Boden, sales director at LendInvest, said: “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.”
Given the existing climate, Boden expects to see investors take longer-term positions in property as they look to yields and rental price growth as valuable metrics in the short-term to determine the profitability of an asset.
“The best way for investors to take advantage of the volatility in the rental market is to seek out buy-to-let opportunities,” he added.
The Top 10 buy-to-let postcodes
|
Yield
|
Capital gains
|
Rental price growth
|
Transaction volume growth
|
Colchester
|
3.71%
|
9.98%
|
3.41%
|
2.79%
|
Northampton
|
4.12%
|
10.02%
|
2.38%
|
1.53%
|
Leicester
|
3.90%
|
7.74%
|
4.35%
|
2.63%
|
Luton
|
3.97%
|
8.60%
|
3.72%
|
1.65%
|
Birmingham
|
4.60%
|
6.70%
|
3.91%
|
3.30%
|
Manchester
|
5.42%
|
6.28%
|
3.71%
|
2.33%
|
Ipswich
|
3.51%
|
8.09%
|
3.11%
|
3.51%
|
Brighton
|
3.72%
|
5.32%
|
4.99%
|
2.81%
|
Rochester
|
3.92%
|
7.18%
|
3.24%
|
1.77%
|
Norwich
|
3.70%
|
7.75%
|
2.70%
|
1.88%
|
The Bottom 10 buy-to-let postcodes
|
Yield
|
Capital gains
|
Rental price growth
|
Transaction volume growth
|
East Central London
|
2.90%
|
-3.76%
|
-1.1%
|
-1.73%
|
Durham
|
4.39%
|
-2.07%
|
-3.0%
|
1.48%
|
Halifax
|
4.06%
|
-1.82%
|
-0.5%
|
4.41%
|
Kingston upon Thames
|
2.99%
|
2.32%
|
-2.3%
|
1.38%
|
Cleveland
|
4.26%
|
-0.53%
|
-0.5%
|
2.84%
|
Watford
|
3.23%
|
3.20%
|
-1.9%
|
1.14%
|
West London
|
2.68%
|
3.38%
|
-0.9%
|
-0.49%
|
South West London
|
2.93%
|
3.13%
|
-1.3%
|
-0.78%
|
Ilford
|
3.59%
|
2.97%
|
-1.9%
|
3.39%
|
Crewe
|
3.69%
|
1.93%
|
0.1%
|
0.87%
|
Areas most affected by price growth slowdown
|
Region
|
Change in rate of growth in the past six months
|
Dartford
|
South East
|
Down 66%
|
St Albans
|
South East
|
Down 63%
|
Romford
|
London
|
Down 62%
|
Reading
|
South East
|
Down 53%
|
East London
|
London
|
Down 48%
|
Slough
|
South East
|
Down 48%
|
Milton Keynes
|
South East
|
Down 47%
|
Chelmsford
|
East of England
|
Down 46%
|
Bath
|
South West
|
Down 46%
|
Southend-on-Sea
|
South East
|
Down 43%
|
Areas least affected by price growth slowdown
|
Region
|
Change in rate of growth in the past six months
|
Truro
|
South West
|
Up 73%
|
Birmingham
|
West Midlands
|
Up 35%
|
Bournemouth
|
South West
|
Up 31%
|
Northampton
|
East Midlands
|
Up 4%
|
Exeter
|
South West
|
Up 2%
|
Lincoln
|
East Midlands
|
Up 2%
|
Leicester
|
East Midlands
|
Down 2%
|
Coventry
|
West Midlands
|
Down 9%
|
Taunton
|
South West
|
Down 9%
|
Gloucester
|
South West
|
Down 14%
|
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Leicester on the increase!
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