The latest quarterly buy-to-let index report from LendInvest has revealed that the top ten postcode areas in England and Wales are split evenly between locations that voted for the Conservatives or Labour.
LendInvest’s Index is calculated by analysing four critical measures, namely:
- capital value growth
- transaction volumes
- rental yield
- rental price growth
Locations
Luton has been revealed as the best buy-to-let investment location across both England and Wales. Average yields here are 4.54%, with rental price growth 7.37%. The majority of people here were found to have voted for Labour in the recent election.
Stevenage was found to be the top region for buy-to-let amongst Conservative supporters, with capital gains of 11.64% and rental price growth of 7.5% in the last quarter.
Romford, which came top of the pile in previous editions of the report, fell to tenth, due to falling rental yields and capital gains.
The top-ten buy-to-let postcodes, as per the Index, were found to be:
| Yield | Capital gains | Rental price growth | Transaction volume growth | |
| Luton | 4.54% | 12.83% | 7.37% | -10.40% |
| Stevenage | 4.05% | 11.64% | 7.47% | -9.40% |
| Rochester | 4.55% | 12.34% | 5.45% | -9.40% |
| Colchester | 4.29% | 14.14% | 4.14% | -11.16% |
| Dartford | 4.37% | 13.61% | 3.92% | -10.94% |
| Peterborough | 4.71% | 9.04% | 6.98% | -10.67% |
| Southend-on-Sea | 4.30% | 12.37% | 3.89% | -10.26% |
| Manchester | 6.11% | 7.58% | 7.53% | -12.41% |
| Canterbury | 4.36% | 9.34% | 6.62% | -11.49% |
| Romford | 4.81% | 14.42% | 1.28% | -11.67% |
For Conservative supporters, the top-ten reads:
Yield |
Capital gains | Rental price growth | Transaction volume growth | |
| Stevenage | 4.05% | 11.64% | 7.5% | -9.40% |
| Rochester | 4.55% | 12.34% | 5.4% | -9.40% |
| Colchester | 4.29% | 14.14% | 4.1% | -11.16% |
| Dartford | 4.37% | 13.61% | 3.9% | -10.94% |
| Southend-on-Sea | 4.30% | 12.37% | 3.9% | -10.26% |
| Romford | 4.81% | 14.42% | 1.3% | -11.67% |
| Chelmsford | 3.96% | 12.44% | 3.3% | -10.25% |
| Northampton | 4.68% | 9.64% | 4.8% | -11.23% |
| Swindon | 4.10% | 9.46% | 5.0% | -10.49% |
| St Albans | 3.56% | 11.30% | 3.9% | -12.48% |
Top regions for BTL split between Tory and Labour
For Labour, the list is:
| Yield | Capital gains | Rental price growth | Transaction volume growth | |
| Luton | 4.54% | 12.83% | 7.4% | -10.40% |
| Peterborough | 4.71% | 9.04% | 7.0% | -10.67% |
| Manchester | 6.11% | 7.58% | 7.5% | -12.41% |
| Canterbury | 4.36% | 9.34% | 6.6% | -11.49% |
| Bristol | 4.45% | 10.34% | 4.8% | -10.82% |
| Coventry | 4.95% | 8.49% | 5.6% | -10.49% |
| Ipswich | 4.02% | 11.77% | 3.2% | -10.86% |
| Newport | 4.79% | 5.52% | 6.8% | -8.83% |
| Ilford | 4.37% | 13.94% | 0.9% | -14.63% |
| Leeds | 4.77% | 5.97% | 6.4% | -9.59% |
Changes
Christian Faes, co-founder and chief executive of LendInvest, said: ‘Against a backdrop of all the political upheaval the country has endured in the last quarter, it isn’t surprising to see some significant changes in the performance of postcodes against one another.’[1]
‘These shifts, however, are more isolated than systemic and the fact that there has not been a greater shakeup in the Top 10 buy-to-let postcodes signals the durability and resilience of the UK property market,’ he added.[1]
[1] http://www.propertyreporter.co.uk/property/top-ten-btl-postcodes-see-significant-changes-during-election.html