According to the latest data, Luton has re-emerged as the top buy-to-let hotspot in England and Wales.
The latest LendInvest index ranks 105 post codes based on a variety of factors including yields, capital value growth, sales volumes and rental price growth. Luton generates yields of 3.91%, capital gains of 7.29% and rental growth of 3.7%. Colchester has been pushed down to second place, with Romford third, Birmingham fourth and Manchester fifth.
Across the sector, sales volumes are down 6.77% nationally, pointing towards a downturn in the buy-to-let investment market, likely caused by uncertainty in the economy and a tightening of tax rules for landlords. However, the LendInvest data shows that there are areas worth investing in, particularly in the Midlands. Northampton, Leicester and Cambridge have all spent time amongst the Top 10 in recent surveys and represent viable long-term investment locations.
At the opposite end of the scale, locations in London and the North-West are experiencing negative growth in capital gains and rental yields. Coupled with a reduction in transactions and the picture for some areas is quite bleak.
Hiten Ganatra, Managing Director at Visionary Finance: “The buy-to-let sector has been experiencing something of a squeeze for a couple of years now as tax rules and lending criteria are making buy-to-let less attractive; however, depending on your investment location, there are still great deals to be had and worthwhile places to invest in. Our advice is to study market data and think carefully before making long-term investment decision.”
If you need any support with a buy-to-let purchase, our advisors would be happy to help. Call us on 01908 465100.