While a number of cities locatedin the Midlands are offering somegood opportunities for investment for interested landlords in the country, an old player has re-emerged. Claiming the top when it comes to hotspots for buy-to-let properties in the country for the third time since it was first giventhe nod in 2016 is Luton.
The city tops the quarterly index for buy-to-let property investments performed by Lend Invest. Areas are ranked based on volume of sales, capital value growth, rental price growth, and yields growth. This is the third time that Luton has topped the index; it first bagged the spot back in December of 2016. For its recent achieve, the city has managed to secure yields of 3.91%. Rental growth is at 3.7% and capital gain is at a whopping 7.29%.
Grabbing the second spot is Colchester where capital gain is at 6.33%, rental growth is at 4.77%, and yields at 3.63%. Completing the top three is Romford. It registered a capital gain of 4.99%, yields og 4.09, and rental growth of 5.28%.
Birmingham is at the fourth place and Manchester is fifth. This means that both cities still presentsome good opportunities for investmentfor landlords. In addition, among the top 10 are Bristol at eighth, and Cambridge at the sixth spot.
At present thought, he worst location forbuy-to-let schemes is East Central London. Here, the average yield is only 2.86%. Rental growth is also down by 0.2%. Worse, the capital gain is a negative 13.86%. Other places that may not be the best picks for buy-to-let investments include Lancaster, Blackburn, Twickenham, West Central London Sunderland, South West London, Crewe, Cleveland, and Durham. There are all the worst performing areas in the country as far as landlords are concerned.
However, volume of sales has been considerably down, according to property specialist Experience Invest. Nationally, it is down by 6.77%. Data points out that this is something that investors should take into account when they make decisions. It is quite easy to just check the underlying data to tell that the volume of transactions is actually down. Still, it is important to remember that while these indices do help one get a look at the present state of the property market, it is necessary tounderstand too thatone metric alone is never going to be enough in understanding the housing market. A single metric alone can never be enough when it comes to clearly defining the performance of a property market.
It is a fact too though that most of the top performinglocations for buy-to-let investments are experiencing quite a slow down this quarter as far as transactions go. Some experienced substantial falls. Others just some slight dips. Data shows though that right now, a mortgage strategy of buy, hold, and then remortgage may be the preference by some investors as they try to ride out the worst possible slowdown that the market is experiencing. Keep up-to-date with the latest in the property market by reading about Experience Invest online.