The best places to invest in buy-to-let property in the UK

Britain’s buy-to-let property sector has faced a challenging few years. Since April 2016, landlords have had to stump up an extra 3% for stamp duty, as well as facing a restriction of tax relief on mortgage interest payments.

Sterling’s depreciation since the Brexit vote has also discouraged international buyers from investing due to the additional costs associated with converting pounds back into local currency.

However, a slump in property prices across the country, particularly in London and the South, has invited some British investors back into the market. Their aim now is to chase yield rather than asset appreciation.

So where is the best place for aspiring or experienced buy-to-let property landlords to invest…

  • Colchester is currently the best place to buy-to-let in England and Wales. The town ranked highest for rental price growth (6.5 per cent), which is 3.32 per cent higher than the second place location. Colchester’s rental market is thriving due to fewer young people accessing the property ladder and limited development in the market.
  • Stockport takes second place, with a rental price growth of 3.18 per cent. However, it’s rental yield of 3.75 per cent and capital gains growth of 6.34 per cent are actually higher than the number one town. Stockport has climbed an impressive 18 places since the LendInvest June 2018 report, and it’s suggested that this success is due to recent investment in neighbouring Manchester.
  • Manchester itself has risen back up the table from fifth in June 2018 to third, showing strength in capital gains and rental price. Elsewhere in the North, Leeds (12) and Harrogate (19) are tipped as ones to watch.

The map below shows Britain’s buy-to-let heat map.

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