LendInvest has released its Buy-to-Let Index report with a spotlight on university towns. Published quarterly, the LendInvest BTL Index ranks each postcode area around England and Wales based on a combination of four critical metrics: capital value growth, transaction volumes, rental yield and rental price growth.
The key findings for September 2017 were that Luton, a convenient commuter town north west of London, retained its position at the top of the table, (prices up 10.3% and yields at 4.5%) while Colchester climbed from 4th spot to 2nd (13% and 4.2%), demoting Rochester (8.4% and 4.5%) into 4th position due to both rental yield and capital gains falling.
Manchester (up 6.3% and rental yield of 6.0%) moved into the 3rd place thanks to strong rental yields and capital gains, while Hull (11.1% and 4.7%) climbed 28 places from 33rd to 5th, signalling further upward mobility in the northern property markets.
Ian Boden, sales director at LendInvest, said: “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 is encouraging, and points to competitive market conditions in those areas and higher than average levels of activity.”