UK house prices: The best and worst areas for buy-to-let investments in the UK revealed

 
Shruti Tripathi Chopra
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Home Ownership Falls To Its Lowest Level In 30 Years
Buy-to-let investments in England and Wales are on the rise (Source: Getty)

Luton is the best place for buy-to-let investments in the UK, according to a new study.

The Bedfordshire area has enjoyed a 7.37 per cent increase in rental price growth, according to a research by specialist mortgage lender LendInvest which looked at ‚Äčeach postcode area around England and Wales.

The research looked at a combination of four critical metrics: capital value growth, transaction volumes, rental yield and rental price growth.

Previous table-topper Romford drops to 10th place following a 2.13 per cent decrease in capital gains and falling rental yields. Meanwhile, Manchester entered the top 10 following impressive rental price growth of 7.53 per cent.

Read more: What the General Election results mean for house prices

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 shake-up in the top 10 buy-to-let postcodes signals the durability and resilience of the UK property market.”

Read more: Where to buy? Here are 31 hotspots where house prices are set to soar

The Top 10 buy-to-let postcodes

Yield

Capital gains

Rental price growth

Transaction volume growth

Luton

4.54 per cent

12.83 per cent

7.37 per cent

-10.40 per cent

Stevenage

4.05 per cent

11.64 per cent

7.47 per cent

-9.40 per cent

Rochester

4.55 per cent

12.34 per cent

5.45 per cent

-9.40 per cent

Colchester

4.29 per cent

14.14 per cent

4.14 per cent

-11.16 per cent

Dartford

4.37 per cent

13.61 per cent

3.92 per cent

-10.94 per cent

Peterborough

4.71 per cent

9.04 per cent

6.98 per cent

-10.67 per cent

Southend-on-Sea

4.30 per cent

12.37 per cent

3.89 per cent

-10.26 per cent

Manchester

6.11 per cent

7.58 per cent

7.53 per cent

-12.41 per cent

Canterbury

4.36 per cent

9.34 per cent

6.62 per cent

-11.49 per cent

Romford

4.81 per cent

14.42 per cent

1.28 per cent

-11.67 per cent

The Bottom 10 buy-to-let postcodes

Yield

Capital gains

Rental price growth

Transaction volume growth

Sunderland

5.79 per cent

0.75 per cent

-0.5 per cent

-8.65 per cent

Lancaster

4.28 per cent

2.10 per cent

-0.3 per cent

-10.27 per cent

Darlington

4.19 per cent

0.47 per cent

-0.2 per cent

-8.29 per cent

Preston

4.35 per cent

0.26 per cent

-0.4 per cent

-9.75 per cent

Llandudno

4.56 per cent

0.88 per cent

-0.9 per cent

-9.07 per cent

Plymouth

4.12 per cent

3.14%

-2.6 per cent

-10.21 per cent

Western Central London

3.75 per cent

3.18 per cent

-3.4 per cent

-20.36 per cent

North West London

3.70 per cent

3.84 per cent

-3.9 per cent

-16.01 per cent

West London

2.94 per cent

1.74 per cent

-3.0 per cent

-18.95 per cent

Galashiels

3.98 per cent

1.60 per cent

-6.2 per cent

-12.54 per cent

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