LendInvest BTL Index sees transaction volumes dip as remortgage deals spike

Luton back on top for the third time since 2016 while East Central London tops the bottom 10.

to let

LendInvest has released its latest LendInvest Buy to Let Index report showing Luton back on top for the third time since 2016.

Published quarterly, the 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.

Key findings for July 2018 are:

  • Luton (#1) reclaiming top spot for the third time since since December 2016
  • Birmingham (#4) holding firm ahead of Manchester (#5) as presenting key investment opportunity
  • Cambridge and Bristol breaking into the Top 10 (#6 and #8)
  • Inner London postcodes bouncing back one year on – with South East London jumping from #79 (June 2017) to #33

LendInvest has also published a special feature investigating the reasons why transaction volume growth has slowed by as much as -6.77% on average across the UK.

The feature reflects specifically on recent findings by UK Finance that Buy to Let remortgages have increased in volume by 32.4%.

Ian Boden, sales director at LendInvest, said: “It’d be so easy to look at the underlying data that tells us transaction volumes are down and make dire predictions about the health and wealth of the rental market.

“Instead, what our index proves once again is that looking at one metric in the housing market is never enough, one metric on its own can’t clearly define the performance of a city’s property market.

“Each of the very top performing BTL locations this quarter is experiencing a slowdown in transactions – substantial falls in places, dips in others.

“But, the best places this quarter continue to outperform the competition well thanks to strong performances on other, equally important metrics like rental yield, capital gains and rental price growth.

“Data from the BTL Index, UK Finance and our own experience as a mortgage lender strongly suggests that right now a ‘buy, hold and remortgage’ strategy is some investors’ preference while the market works through a possible slowdown.”

The Top 10 Buy to Let postcodes

  1. Luton
  2. Colchester
  3. Romford
  4. Birmingham
  5. Manchester
  6. Cambridge
  7. Northampton
  8. Bristol
  9. Ipswich
  10. Southend-on-Sea.

The Bottom 10 Buy to Let postcodes

  1. East Central London
  2. Durham
  3. Cleveland
  4. Crewe
  5. South West London
  6. Sunderland
  7. West Central London
  8. Twickenham
  9. Blackburn
  10. Lancaster.

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