The best place for rental returns is… Romford
Romford has knocked Luton off the top spot in the LendInvest Buy-to-Let Index, climbing six places following an 8% jump in rental price growth.
The East London suburb recorded an average yield of 5.24% and capital gains of 16.55%.
Nine out of the top 10 places were in the South East, with the remaining hotspot going to Northampton.
Christian Faes, co-founder of LendInvest, said: “Consistency is clear here: suburban parts of the South East of England continue to offer the best opportunities for investors, while Inner London continues to underperform.
“The absence of a large shake-up in the top 10 buy-to-let postcodes this quarter shows some stability in the market following a year of market-moving uncertainty and geopolitical shocks. This can only be good news for property professionals: there is nothing to wait for to start investing, renovating and building.
“Landlords and investors must remember that considering rental yield isn’t enough; it’s critical to find a property that impresses across all metrics. In the quarter ahead, we’ll be watching closely a number of areas that could edge towards the Top 10, like Bristol (ranked #15), Milton Keynes (#16) and Manchester (#21).”
Bottom of the list was Swansea with an average rental yield of 4.67%, capital growth of 1.24% and 0% rental price growth.