Hull has been named the biggest climbing city for buy-to-let investment in 2017, in LendInvest’s latest Buy-to-Let Index.
Published quarterly, the specialist property lender’s report ranks all 105 postcode areas across England and Wales for buy-to-let investment, based on a combination of four critical metrics: capital gains, transaction volumes, rental yield and rent price growth.
This quarter, the report also includes a special feature that looks at the towns and cities that have climbed up the rankings the most during 2017.
Manchester, the leader of the Northern Powerhouse initiative, has taken the top spot this quarter, however, Hull has been named the biggest climber of the year, after jumping 93 places to position six.
Leicester has broken into the top ten, while Birmingham has climbed eight places from 18 to 11, signalling upward mobility in the Midlands markets.
Enfield, on the other hand, has tumbled from the top ten in February to the bottom ten in December.
Top 10 postcodes for buy-to-let
| Position | Location | Average rental yield | Average capital gain | Average rent price growth |
Transaction volume growth |
| 1 | Manchester | 5.55% | 8.34% | 5.76% | -7.14% |
| 2 | Colchester | 3.78% | 11.96% | 3.40% | -5.94% |
| 3 | Luton | 4.03% | 9.16% | 5.26% | -7.28% |
| 4 | Rochester | 4.03% | 7.55% | 5.12% | -6.57% |
| 5 | Southend-on-Sea | 3.76% | 9.12% | 3.43% | -5.97% |
| 6 | Hull | 4.20% | 8.46% | 2.80% | -5.51% |
| 7 | Romford | 4.24% | 8.44% | 3.17% | -7.22% |
| 8 | Norwich | 3.75% | 7.98% | 3.27% | -5.70% |
| 9 | Leicester | 3.94% | 6.43% | 5.30% | -8.16% |
| 10 | Ipswich | 3.56% | 9.44% | 1.97% | -6.13% |
Ian Boden, the Sales Director at LendInvest, says: “This month, we see good news for the north and the Midlands, as Manchester finally secures its spot in first place in our Index, after a closely watched climb to the top. Cities such as Leicester (ten) Birmingham (11) and Nottingham (#24) have also made significant gains in the index, signalling a clear fueling of the Midlands engine.
“Our biggest climber for the year was Hull. Since becoming City of Culture back in January, Hull has received a new wave of confidence in the form of increased investment in the area, driven by higher rental yields. However, the lack of northern dominance in the remainder of the top ten climbers is interesting to note, in light of recent headlines that have suggested property investment in the north will outperform that of other regions around the country.”
He continues: “Elsewhere in the list, it’s great to see towns like Slough, Leicester and Cambridge ascend the list with such gusto. The location of these high climbers, ranging from Cornwall to East Yorkshire, shows how dynamic and ever-changing UK property investment can be across the country. As we move into 2018 and roll out more of our new buy-to-let loans, we look forward to working with investors countrywide on their property projects.“
Top 10 biggest climbers of 2017
|
Position |
Location | Current ranking | 2016 ranking |
Change |
| 1 | Hull | 6 | 99 | +93 |
| 2 | Cambridge | 14 | 83 | +69 |
| 3 | Slough | 16 | 79 | +63 |
| 4 | Leicester | 9 | 57 | +48 |
| 5 | Portsmouth | 23 | 59 | +36 |
| 6 | Lincoln | 26 | 62 | +36 |
| 7 | Norwich | 8 | 40 | +32 |
| 8 | Gloucester | 27 | 55 | +28 |
| 9 | Ipswich | 10 | 35 | +25 |
| 10 | Truro | 22 | 44 | +22 |