Landlord News

Romford Knocks Luton off the Top Buy-to-Let Locations

Em Morley - February 23, 2017
Romford Knocks Luton off the Top Buy-to-Let Locations

Romford Knocks Luton off the Top Buy-to-Let Locations

Romford has knocked Luton off the number one spot in LendInvest’s rankings of the top buy-to-let locations in England and Wales.

The UK’s leading online property lending and investing business has released its latest quarterly research index on the top buy-to-let locations.

The LendInvest Buy-to-Let Index ranks each postcode area around England and Wales to find the top buy-to-let locations. The ranking is based on a combination of four critical metrics: Capital value growth, transaction volumes, rental yield and rent price growth.

Romford in east London has taken the top spot, climbing six places thanks to an 8% jump in rent price growth.

Northampton remains the only postcode in the top ten to be located outside the South East, while Stevenage ranked tenth overall, despite recording the highest rent price growth, at 10.2%.

The Co-Founder and CEO of LendInvest, Christian Faes, comments: “Consistency is clear here: suburban parts of the South East of England continue to offer the best opportunities for investors, while inner London continues to underperform.

“The absence of a large shake-up in the top ten buy-to-let postcodes this quarter shows some stability in the market following a year of market-moving uncertainty and geopolitical shocks. This can only be good news for property professionals; there is nothing to wait for to start investing, renovating and building.”

He advises: “Landlords and investors must remember that considering rental yield isn’t enough; it’s critical to find a property that impresses across all metrics. In the quarter ahead, we’ll be watching closely a number of areas that could edge towards the top ten, like Bristol (ranked 15th), Milton Keynes (16th) and Manchester (21st).”

The top buy-to-let locations 

Position

Location Average rental yield Average capital gain Average rent price growth

Transaction volume growth

1 Romford 5.24% 16.55% 8.33% -7.84%
2 Luton 4.73% 15.19% 7.94% -6.06%
3 Dartford 4.74% 17.75% 6.25% -12.44%
4 Rochester 4.71% 13.96% 6.94% -7.09%
5 Watford 4.24% 17.17% 6.36% -15.78%
6 Enfield 4.60% 16.97% 4.53% -11.97%
7 Southend-on-Sea 4.50% 14.41% 5.95% -9.40%
8 Northampton 4.77% 8.11% 8.33% 0.85%
9 Colchester 4.44% 12.21% 4.38% -2.61%
10 Stevenage 4.06% 9.39% 10.20% -11.00%

The worst buy-to-let locations 

Position

Location Average rental yield Average capital gain Average rent price growth

Transaction volume growth

1 Galashiels 3.80% -9.57% 0.91% 1.00%
2 Cleveland 4.66% 1.24% -3.51% -11.26%
3 Northwest London 3.82% 5.40% -5.03% -13.01%
4 Carlisle 4.16% 0.61% 0.00% -14.23%
5 Western central London 3.46% 1.50% 4.44% -27.90%
6 Llandrindod Wells 3.49% -1.20% -1.24% 0.57%
7 Hull 4.64% 5.61% -3.51% -11.39%
8 Newcastle upon Tyne 4.74% 1.53% 0.00% -9.30%
9 Llandudno 4.73% 0.77% 0.00% -4.99%
10 Swansea 4.67% 1.24% 0.00% -5.76%