Northern Markets Challenge the South East for Property Investors
Northern markets are challenging those in the South East when it comes to successful property investment, according to the latest Buy-to-Let Index from LendInvest, the UK’s leading marketplace platform for property lending and investing.
The quarterly report ranks each postcode area in England and Wales based on a combination of four critical metrics: capital value growth; transaction volumes; rental yield; and rent price growth.
Luton, a convenient commuter town northwest of London, retains the top spot in the Buy-to-Let Index.
Colchester has climbed the table, from fourth to second spot, eclipsing neighbouring Rochester (fourth), which saw a drop in both average rental yield and capital gains.
Manchester has moved into the top three, on the strength of its rental yields and capital gains, while Hull has climbed an impressive 28 places, from 33 to five, signalling further upward mobility in northern markets.
The top ten locations for buy-to-let are below:
|
Position |
Location | Average rental yield | Average capital gains | Average rent price growth |
Transaction volume growth |
| 1 | Luton | 4.51% | 10.29% | 6.81% | -5.00% |
| 2 | Colchester | 4.22% | 13.02% | 3.34% | -5.05% |
| 3 | Manchester | 6.04% | 7.39% | 6.26% | -6.20% |
| 4 | Rochester | 4.45% | 8.41% | 5.36% | -5.32% |
| 5 | Hull | 4.65% | 11.12% | 2.53% | -6.24% |
| 6 | Stevenage | 3.96% | 9.54% | 4.84% | -7.14% |
| 7 | Romford | 4.78% | 11.99% | 1.01% | -5.98% |
| 8 | Southend-on-Sea | 4.19% | 10.50% | 2.10% | -6.44% |
| 9 | Ipswich | 3.98% | 10.04% | 2.33% | -5.81% |
| 10 | Ilford | 4.19% | 12.65% | -1.15% | -4.86% |
Ian Boden, the Sales Director at LendInvest, comments on the latest index: “This quarter’s data supports the strong market sentiment that the impact of price sensitivity in London and the South East isn’t being felt to the same degree elsewhere around the country. Cities such as Hull and Nottingham making significant gains in the index (up from 33 to five and from 35 to 12 respectively) is encouraging, and points to competitive market conditions in those areas and higher than average levels of activity.
“Maintaining a balance between the types of tenure in our housing system is more important than ever. We would expect to increasingly see professional buy-to-let investors become cross-country landlords and diversify their portfolios by looking beyond their local areas to find the best investment opportunities elsewhere around the UK, and entering alternative asset classes.”
How is the location of your property investments performing? Perhaps a move to northern markets should be on the cards!
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