Luton has reclaimed has reclaimed the top spot for buy-to-let investments in the UK, new research show.
According to LendInvest, Luton has seen a 7.37% increase in rental price growth and an average yield of 4.54%.
The LendInvest BTL Index ranks each postcode area around England and Wales based on a capital value growth, transaction volumes, rental yield and rental price growth.
Previous table-topper Romford has dropped to tenth due to a 2.13% decrease in capital gains and falling rental yields.
Manchester has broken into the top 10 following impressive rental price growth.
Christian Faes, co-founder and CEO 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. We’ve seen last quarter’s top performing postcode, Romford, fall nine places; while Manchester – unofficial home of the Northern Powerhouse – ascended to the Top 10 for the first time.
“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.”
The top 10 buy-to-let postcodes
| 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% |
The bottom 10 buy-to-let postcodes
| Yield | Capital gains | Rental price growth | Transaction volume growth | |
| Sunderland | 5.79% | 0.75% | -0.5% | -8.65% |
| Lancaster | 4.28% | 2.10% | -0.3% | -10.27% |
| Darlington | 4.19% | 0.47% | -0.2% | -8.29% |
| Preston | 4.35% | 0.26% | -0.4% | -9.75% |
| Llandudno | 4.56% | 0.88% | -0.9% | -9.07% |
| Plymouth | 4.12% | 3.14% | -2.6% | -10.21% |
| Western Central London | 3.75% | 3.18% | -3.4% | -20.36% |
| North West London | 3.70% | 3.84% | -3.9% | -16.01% |
| West London | 2.94% | 1.74% | -3.0% | -18.95% |
| Galashiels | 3.98% | 1.60% | -6.2% | -12.54% |
