Online property lending and investing business, LendInvest, has released its latest quarterly research Index on the UK Buy-To-Let market. The revamped format ranks each postcode based on a range of metrics that include: capital value growth, transaction volumes, yield and rental price growth. The data sources were the Land Registry and Zoopla.
Analysis of the data by the company found that the top 10 best performing postcodes were almost entirely found in the South East of England, with Northampton the only exception. Luton in Bedfordshire took the top spot, with rental prices jumping nearly 10% over the past 12 months, the largest increase in the country. Enfield in North London was ranked third overall, but saw the largest capital gains at 17.4%, compared to Q3 2015.
Below are the top three buy-to-let destinations, according to the Index, in more detail:
1st Place - Luton
Luton tops the list having ranked highly for both capital gains (13.6%) and rental price growth (9.6%). In fact, Luton saw the highest level of growth in rental prices across all markets. The relatively high yield (4.8%) coupled with the strong growth experienced in the other key metrics makes Luton a particularly desirable market.