South East dominates list of buy-to-let hotspots

Thursday 17th November 2016

A quarterly ranking of buy-to-let locations is dominated by towns in the South East of England.
LendInvest's Buy-to-Let Index analyses locations based on average yields, capital gains, rental price growth and transaction volume growth.
The top-scoring town for rental price growth is Luton with an average rise of 9.58%. The Bedfordshire town also scores highly for average yield (4.81%) and capital gains (13.63%).
The highest average yields were recorded in Romford at 5.26%, while the highest capital gains can be found in Enfield at 17.36%.
The majority of the top ten have experienced dips in the number of transactions recorded over the last quarter. The only area to record an uplift in transactions is Northampton - which happens to be the only town in the top ten not situated in the South East.
“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," explains Christian Faes, co-founder and chief executive of LendInvest.
"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." 
He says, however, that capital gains aren't the only thing investors should be looking out for. 
"Measure up the prospects for rental price growth, how active the local market is, and the overall rental yield. Areas that perform well in all of these metrics are winners for property investors,” he adds.
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%



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