Luton the most profitable area for landlords

Jessica Nangle

November 15, 2016

Christian Faes

Luton is the most profitable area in the UK for buy-to-let landlords according to Lendinvest’s buy-to-let index.

On an annual basis Luton landlords made a 4.81% yield, saw house prices rise by 13.63% and experienced rental price growth of 9.58%.

Other strong areas listed were Stevenage, Enfield, Northampton, Dartford, Southend-on-Sea, Romford, Chelmsford, Southall and Twickenham.

Placing the buy-to-let deals that don’t stack up

Christian Faes (pictured), co-founder and chief executive at LendInvest, said: “You want a property that is going to increase in value during your ownership, and the prospects for further house price growth is good- we are still not building anywhere near enough homes in the UK- but there are regional differences to take into account.

“The capital value growth seen in postcodes in the South East are significantly higher than those elsewhere in England and Wales.

“However, it’s certainly not the only thing to look out for. Investors also need to measure up the prospects for rental price growth, how active the local market is, and the overall rental yield. Areas that perform well in all of these metrics are winners for property investors.”

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