Colchester has been identified as the number one place to currently invest for buy-to-let, based on rental yields.
The LendInvest BTL Index regularly ranks 105 postcode areas around England and Wales based on a combination of four critical metrics: capital value growth, transaction volumes, rental yield and rental price growth, and based on the latest data Colchester moves into top spot.
Ranked in second place is Stockport, followed by Manchester, Birmingham, Canterbury, Coventry, Wolverhampton, Peterborough, Enfield and Luton.
Ian Boden, sales director at LendInvest, said: “As we edge towards the new year, and subsequently the date we are due to leave the EU, all investor’s eyes are on the performance of the UK property market. This is a time where our data is our best ally in making the right choices for long term investment.
“This quarter has returned some interesting results. Smaller towns in both the North and Midlands are making swift gains up the table to rival the typical hot spots in each region. Stockport has taken the lead over Manchester this quarter, and Harrogate is in hot pursuit of its larger neighbour Leeds.
“Looking towards the center of the UK, Midlands cities Wolverhampton and Peterborough have smashed into the Top 10, joining successful regional capital Birmingham. The growing opportunity for BTL investors in these regions reflects a knock on effect of investment in these key cities.
“Locking down a solid prediction of how the landscape will look into the New Year is no easy task. In this instance, we know it is best to let the data do the talking.”