Colchester Boasts 9.98% Capital Gains in Lendinvest Buy-to-Let Index Report
The latest Lendinvest Buy-to-Let Index Report reveals some interesting figures, with Colchester claiming the number one spot. Boasting the second highest rate of capital gains in the Index at 9.98%, it is closely followed by Northampton and Leicester.
Despite house price growth slowing throughout the UK, Colchester has seen more activity in the market than this time last year, with prices moving towards the highs seen in 2007 and rental growth remaining strong. Helped by good commuter links to London and more attractive prices than nearby Southend-on-Sea and Chelmsford, it’s one to watch in the buy-to-let market.
Northampton last featured in the Top 10 of the LendInvest BTL Index in January 2017 and has climbed 19 places since the last quarterly Index was published in December 2017. It is now the only market in the country that has enjoyed capital gains of 10.02% in the past 12 months, making the East Midlands town an attractive place to invest.
Leicester continues to rise, taking third place in the latest Index with 7.74% capital gains. Markets in the South East have historically dominated the Index, but Midlands markets are starting to look like a safe alternative as those in the South East experience sluggish growth – with the exception of Brighton, which comes in at number eight on the Index with strong buy-to-let potential (3.72% capital gains). Rental growth underpins the strength of the Leicester property market, ranking third highest in this category across the whole of the UK.
With focus beginning to shift away from the South East for the best investment opportunities, several markets in the South West have risen up the Index. Bristol is currently number 12 in the Index, boasting very strong rental growth over the past year. The city is closely followed by Swindon, Truro and Gloucester (number 17, 19 and 21 respectively). Much like Bristol, relatively strong rental growth is a key metric for these markets and adds to the appeal of the region for buy-to-let investors.
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