Luton, Colchester and Manchester are the best buy to let locations in Britain when it comes to yields, rental growth and capital gains, according to the latest quarterly research.
The commuter town of Luton retains top spot in the LendInvest buy to let index with a rental yield of 4.5%, capital gain of 10.29% and rental price growth of 6.81%, followed by Colchester with 4.22%, 13.02% and 3.34%.
Manchester moved into third place on the strength of rental yields and capital gains, Rochester in fourth and Hull climbed 28 places from 33 to five, which the index report says shows further upward mobility in Northern markets as prices in London and the South East supress yields.
The worst location for buy to let is Llandudno in Wales with rental yield of 4.59%, capital gains of 0.23% and rental price growth of 0.39%, followed by Durham, Preston, Plymouth and Crewe.
‘The 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,’ said Ian Boden, sales director at LendInvest.
He pointed out that cities such as Hull and Nottingham have made significant gains in the index, up 33 places and 35 places respectively. ‘It points to competitive market conditions in those areas and higher than average levels of activity,’ he explained.
‘Maintaining a balance between the types of tenure in our housing system is more important than ever. We would expect to increasingly see professional buy to let investors become cross country landlords, and diversify their portfolios by looking beyond their local areas to find the best investment opportunities elsewhere around the UK and entering alternative asset classes,’ he added.