Specialist buy to let lender LendInvest has looked at 105 postcodes across England and Wales to find the best (and worst) performing locations for buy to let investors.
The lender assessed the locations on four key characteristics – capital value growth, transaction volumes, rental yield and rental price growth – so the results are perhaps less predictable than a league table drawn up from only one metric, such as yield or capital appreciated.
Colchester tops LendInvest’s list with three Midlands locations – Northampton, Leicester and Birmingham – in the top five.
London commuter towns including Dartford, Romford and St Albans – historically strong performers according to these criteria – drop down the table.
The Top 10 buy to let postcodes:
– Colchester
– Northampton
– Leicester
– Luton
– Birmingham
– Manchester
– Ipswich
– Brighton
– Rochester
– Norwich
The Bottom 10 buy to let postcodes:
– East Central London
– Durham
– Halifax
– Kingston upon Thames
– Cleveland
– Watford
– West London
– South West London
– Ilford
– Crewe
LendInvest has also investigated how the same 105 postcode areas are faring amid a nationwide slowdown in house price growth.
The lender says the Midlands and South West England are both largely unscathed by house price growth slowdown, with Cornwall’s only city, Truro, recording 73 per cent upswing in house price growth, far above the national trend.
Four commuter towns circling London see surprising 50 per cent or more house price growth slowdown, sending them down the league table.
