The Midlands surges in buy-to-let index

The Midlands surges in buy-to-let index

The latest LendInvest Buy-to-Let Index report has revealed that Colchester tops the buy-to-let index table at last after holding the second place spot since September 2017.

Published quarterly, the LendInvest buy-to-let Index 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.

The Midlands region has surged through the table as Northampton (#2), Leicester (#3) and Birmingham (#5) move into the top five. London commuter towns Dartford (#43), Romford (#14) and St Albans (#73) – historically high flyers in the Index – drop down the table by as many as 58 places.

The South West of England remain unscathed by house price growth slowdown, with Cornwall’s only city, Truro, recording a 73% upswing in house price growth, bucking the national trend.

Ian Boden, sales director at LendInvest, said: “We don’t subscribe to the idea of a mass house price growth slowdown throughout the country. Instead we wanted the Index to show us where the slowdown is hitting hardest, and where the opportunities continue to abound for UK landlords and property investors alike.

“Predictions for the overall growth of the housing market remain positive for the year ahead but this quarter’s Index indicates that house price growth slowdown is impacting on different regions to different degrees. There are reasons to be cheerful in many places around the country. Looking at the South West and the Midlands in particular, we can see modest slowdown occuring that’ll keep market activity buoyant.

“Striking the right balance when it comes to making property investment decisions is crucial; however, the current limitations in house price growth mean fewer opportunities in the market to perform a traditional ‘flip’ of a property to get a return. We can expect to see investors taking longer-term positions in property as they look to to yields and rental price growth as valuable metrics in the short-term to determine the profitability of an asset. The best way for investors to take advantage of the volatility in the rental market is to seek out buy-to-let opportunities.”