Romford in East London is the best area in England and Wales to be a landlord, LendInvest’s buy-to-let index concludes.
In terms of rental yield, capital gains, rental price growth and number of transactions in the last 12 months Romford was the top postcode, ahead of Luton, Dartford, Rochester and Watford.
The worst areas to be a landlord are Swansea, Llandudno and Newcastle upon Tyne, where rents haven’t increased at all in the past 12 months.
Christian Faes (pictured), co-founder and chief executive of LendInvest, said: “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).”
A number of areas saw transaction volumes fall however this was offset by sharp increases in capital gains and rental price growth.
In Romford for example transactional volumes fell by 7.84% year-on-year but capital gains growth stood at 16.55%, rental price growth 8.33% and rental yield growth was 5.24%.