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Party politics tally with buy-to-let characteristics

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  • 15/06/2017
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Party politics tally with buy-to-let characteristics
Top buy-to-let postcodes that voted Conservative in last week’s General Election are driven primarily by capital gains whereas their Labour counterparts are driven heavily by rental growth.

The results are according to the latest LendInvest Buy-to-Let Index, which ranks each postcode area in England and Wales on a combination of capital value growth, transaction volumes, rental yield and rental price growth.

While the top 10 is evenly split between Conservative and Labour voting postcodes, their characteristics differ, said the lender.

Luton has reclaimed the top spot on the index after Romford dropped to tenth due to a 2.13% decrease in capital gains and falling rental yields. It is followed by Stevenage and Rochester in second and third places.

However, Manchester has broken into the top 10 on the back of impressive rental price growth of 7.53%.

 

The Top 10 buy-to-let postcodes

Yield Capital gains Rental price growth Transaction volume growth
Luton 4.54% 12.83% 7.37% -10.40%
Stevenage 4.05% 11.64% 7.47% -9.40%
Rochester 4.55% 12.34% 5.45% -9.40%
Colchester 4.29% 14.14% 4.14% -11.16%
Dartford 4.37% 13.61% 3.92% -10.94%
Peterborough 4.71% 9.04% 6.98% -10.67%
Southend-on-Sea 4.30% 12.37% 3.89% -10.26%
Manchester 6.11% 7.58% 7.53% -12.41%
Canterbury 4.36% 9.34% 6.62% -11.49%
Romford 4.81% 14.42% 1.28% -11.67%

 

Markets in the South East have dominated the index in the past, but LendInvest said plenty of postcodes in the North and East reflected potential for buy-to-let investors. It highlighted 15th place Ipswich as a market worth watching due to its strong capital gains and rental yields. Norwich (24th) has experienced similar growth in both metrics.

Eighth place Manchester and Leeds (21st) are two Northern cities that have made impressive headway in terms of capital and rental growth. The rental market in Leeds appears in the top 10 for growth in rental prices and increasing yields.

Christian Faes, co-Founder and CEO of LendInvest, said: “Against a backdrop of all the political upheaval the country has endured in the last quarter, it isn’t surprising to see some significant changes in the performance of postcodes against one another. We’ve seen last quarter’s top performing postcode, Romford, fall nine places; while Manchester – unofficial home of the Northern Powerhouse – ascended to the Top 10 for the first time.

“These shifts, however, are more isolated than systemic and the fact that there has not been a greater shakeup in the Top 10 buy-to-let postcodes signals the durability and resilience of the UK property market.”

 

The Top 10 postcodes that voted Conservative

  Yield Capital gains Rental price growth Transaction volume growth
Stevenage 4.05% 11.64% 7.5% -9.40%
Rochester 4.55% 12.34% 5.4% -9.40%
Colchester 4.29% 14.14% 4.1% -11.16%
Dartford 4.37% 13.61% 3.9% -10.94%
Southend-on-Sea 4.30% 12.37% 3.9% -10.26%
Romford 4.81% 14.42% 1.3% -11.67%
Chelmsford 3.96% 12.44% 3.3% -10.25%
Northampton 4.68% 9.64% 4.8% -11.23%
Swindon 4.10% 9.46% 5.0% -10.49%
St Albans 3.56% 11.30% 3.9% -12.48%

 

The Top 10 postcodes that voted Labour

  Yield Capital gains Rental price growth Transaction volume growth
Luton 4.54% 12.83% 7.4% -10.40%
Peterborough 4.71% 9.04% 7.0% -10.67%
Manchester 6.11% 7.58% 7.5% -12.41%
Canterbury 4.36% 9.34% 6.6% -11.49%
Bristol 4.45% 10.34% 4.8% -10.82%
Coventry 4.95% 8.49% 5.6% -10.49%
Ipswich 4.02% 11.77% 3.2% -10.86%
Newport 4.79% 5.52% 6.8% -8.83%
Ilford 4.37% 13.94% 0.9% -14.63%
Leeds 4.77% 5.97% 6.4% -9.59%

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