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Luton joins Romford as one of the top UK postcodes for buy-to-let developments

Boroughs and towns dotted in and around the outskirts of Greater London have been identified as some of the best places in the UK to invest in buy-to-let property according to new figures released by LendInvest.

According to the property lending marketplace’s quarterly Buy-to-Let Index report, the town of Luton, which is perched on the North West edge of the capital, has been recognised as the top UK postcode for buy-to-let with capital gains of 12.83% and rental price growth of 7.37%.

Elsewhere, previous table topper Romford in East London has tumbled to tenth after a drop in rental yields and a slowing of rental growth has hampered the town’s attractiveness as a BTL hotspot.

In terms of worst performing postcodes, certain sections of London have not performed so well with a contraction in rental price growth, particularly nearer central London, making them some of the least attractive propositions for BTL investors currently.

Western Central London (-3.4%), North West London (-3.9%) and West London (-3.0%) have all suffered rental falls in the last four months making them some of the worst performing postcodes in the UK currently.

Christian Faes, Co-Founder and Chief Executive Officer 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.”

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