Luton has been named as the top spot for rental yield and price growth, according to LendInvest.
The buy-to-let platform’s latest quarterly index shows that Luton lets are offering landlords average yields of 4.81% and rental growth of 9.58%.
The Bedfordshire town, famous for an airport specialising in budget airlines and the Vauxhall Motors head office, could be generating decent yields for plenty of reasons but the transaction figures paint a different story.
Transaction volumes dropped 4.71% so it could be a lack of property keeping growth high rather than people flocking to the area.
Northampton is the only area outside of the South-East in the top ten, delivering yields of 4.87% and rental price growth of 8.33%.
Christian Faes, chief executive of LendInvest, said: “There are a host of different factors that investors have to take into account before buying a property. The big one is of course capital values – you want to buy a property that is going to increase in value during your ownership.
“The prospects for further house price growth is good – we still aren’t building anywhere near enough homes in the UK – but there are regional differences to take into account. As the LendInvest Buy-to-Let index highlights, the capital value growth seen in postcodes in the South-East are significantly higher than those elsewhere in England and Wales.”
How does your area fare?
| Yield | Capital gains | Rental price growth | Transaction volume growth | |
| Luton | 4.81% | 13.63% | 9.58% | -4.71% |
| Stevenage | 4.31% | 14.78% | 8.95% | -9.81% |
| Enfield | 4.76% | 17.36% | 2.21% | -4.35% |
| Northampton | 4.87% | 8.11% | 8.33% | 4.38% |
| Dartford | 4.78% | 13.02% | 7.98% | -10.22% |
| Southend-on-Sea | 4.56% | 11.79% | 5.95% | -4.63% |
| Romford | 5.26% | 13.47% | 2.48% | -1.55% |
| Chelmsford | 4.26% | 12.15% | 5.29% | -3.96% |
| Southall | 4.88% | 14.01% | 3.97% | -10.36% |
| Twickenham | 4.48% | 15.49% | 2.34% | -9.16% |
Not sure I agree with the southern focus of this as objective advice, Wigan, Bolton etc; far better yields and potential for greater capital growth.
A portfolio of 1 property is more vulnerable to voids than a spread investment of several smaller units. The higher capital value in the south also mean it is more difficult to release fractions of a portfolio.
For cold, hard investment head North.
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Second time I have said it today…..am I really sad for loving property related statistics?
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