Simple Landlords Insurance

Get a quote Retrieve quote call us 0808 172 5600

More top buy-to-let postcodes revealed!

Thursday 19 July 2018

Another day, and another regional hotspot identified for buy-to-let investors!

This week Luton takes the top spot in a buy-to-let list of 105 postcode areas across England and Wales, ranked according to capital value growth, transaction volumes, rental yield and rental price growth.

While Luton is again the location with the highest returns, the latest LendInvest report also finds that Birmingham gives slightly higher returns than Manchester, and that Cambridge and Bristol are now amongst the top 10 locations.

Ian Boden, sales director at LendInvest, said: “It’d be so easy to look at the underlying data that tells us transaction volumes are down and make dire predictions about the health and wealth of the rental market.

Instead, what our index proves once again is that looking at one metric in the housing market is never enough. One metric on its own can’t clearly define the performance of a city’s property market

Each of the top performing buy to let locations this quarter is experiencing a slowdown in transactions - substantial falls in places, dips in others. But, the best places this quarter continue to outperform the competition well thanks to strong performances on other, equally important metrics like rental yield, capital gains and rental price growth.

Data from the buy to let index, UK Finance and our own experience as a mortgage lender strongly suggests that right now a ‘buy, hold and remortgage’ strategy is some investors’ preference while the market works through a possible slowdown.”

The top 10 buy to let postcodes are:

  1. Luton
    • Yield 3.91 per cent
    • Capital Gains 7.29 per cent
    • Rental Price Growth 3.7 per cent
    • Transaction Volume Change -6.15 per cent
  2. Colchester
    • Yield 3.63 per cent
    • Capital Gains 6.33 per cent
    • Rental Price Growth 4.77 per cent
    • Transaction Volume Change -6.73 per cent
  3. Romford
    • Yield 4.09 per cent
    • Capital Gains 4.99 per cent
    • Rental Price Growth 5.28 per cent
    • Transaction Volume Change -7.84 per cent
  4. Birmingham
    • Yield 4.55 per cent
    • Capital Gains 5.00 per cent
    • Rental Price Growth 3.66 per cent
    • Transaction Volume Change -6.46 per cent
  5. Manchester
    • Yield 5.36 per cent
    • Capital Gains 4.38 per cent
    • Rental Price Growth 3.71 per cent
    • Transaction Volume Change -7.35 per cent
  6. Cambridge
    • Yield 3.26 per cent
    • Capital Gains 4.57 per cent
    • Rental Price Growth 4.76 per cent
    • Transaction Volume Change -7.36 per cent
  7. Northampton
    • Yield 3.99 per cent
    • Capital Gains 6.59 per cent
    • Rental Price Growth 2.17 per cent
    • Transaction Volume Change -7.36 per cent
  8. Bristol
    • Yield 3.83 per cent
    • Capital Gains 5.51 per cent
    • Rental Price Growth 2.75 per cent
    • Transaction Volume Change -6.2 per cent
  9. Ipswich
    • Yield 3.42 per cent
    • Capital Gains 5.77 per cent
    • Rental Price Growth 2.76 per cent
    • Transaction Volume Change -6.16 per cent
  10. Southend-on-Sea
    • Yield 3.62 per cent
    • Capital Gains 6.05 per cent
    • Rental Price Growth 2.53 per cent
    • Transaction Volume Change -6.93 per cent
Richard Truman, Head of Operations at Simple Landlords Insurance said: “Different organisations use different data and cut it in different ways to come up with these lists of buy-to-let hotspots – but it’s all useful information for growing landlords! Obviously you always need to do your own research and due diligence in any investment area.”

  • The emerging landlord

    It is a time of tremendous change for landlords in the UK.

    Visit microsite
  • Cover from as little as £112.68*

    Get a quote

Call 0808 172 5600

open weekdays 9am-8pm, Saturdays 9am-5pm, and Sundays 10am-4pm.

Get a quote

We want to add value to landlords with interesting news and views! Our Hub includes information and opinions on the housing market from a variety of expert sources – please just be aware it doesn’t always reflect Simple’s opinion, or the products and services we provide.

Related news articles

Support landlords and bring empty homes back into use

Thursday 14 March 2019

The Government is being urged to bring forward tax measures to address the rise of empty homes, after new figures revealed the number in England increased by around 30,000 from almost 606,000 to over 634,000 in the 12 months to October 2018.