LendInvest Buy-To-Let Index shows strong ‘Leave’ towns remain the best investment for landlords

London, 27 July 2016 – LendInvest, the online property investment business, has released its latest quarterly research Index on the UK Buy-To-Let market that tracks changes and trends in landlord rental yields and capital gains since 2010.

In addition to updating its quarterly report comparing rental yields and capital gains in postcode areas around England and Wales, the latest LendInvest Buy-To-Let Index looks at how rental yields and capital gains differ between English local authority districts that voted to ‘Remain’ or ‘Leave’ in last month’s EU Referendum.

Key findings include:

Only two of the top 20 local authority districts for rental yield voted to remain in the EU – Manchester and Liverpool. In contrast, only two of the top 20 districts for capital gains – Barking & Dagenham and Spelthorne (Surrey) – voted in favour of Brexit.

Here are the top local authority districts for landlords for both rental yield and capital gains, and how they voted in the EU Referendum:

Christian Faes, Co-Founder and CEO of LendInvest, said:

“It’s very interesting that the top districts for rental yield, which are often found in the North East and North West, voted so overwhelmingly for Brexit.

“The areas that have seen the best of the recent boom times have generally enjoyed the biggest house price rises, and with that offered the greatest capital gains. Perhaps it is no surprise that they were sufficiently content with the status quo to vote Remain. Areas which have seen far more modest house price rises, appear to have been more disposed to voting for the change promised by Brexit.

“Brexit may create opportunities for property investors, particularly professional and experienced ones. House prices are expected to soften, so some would-be buyers may put off buying. But they still need somewhere to live, which is good news for landlords. What’s more, if house prices do cool as predicted, then investing in property will become even more enticing.”

Quarterly update – Manchester still top for rental yield

Alongside the Brexit research, LendInvest has updated its quarterly figures breaking down the rental yields, capital gains and overall return on investment for different postcode areas.

Manchester again takes top spot, with rental yields of 6.8%. However, there is a changing of the guard when it comes to the next best options, with Coventry, Luton and Outer London moving up the table to take joint second spot, all of which boast a rental yield of 5.8%.

Embeddable maps can be downloaded/linked to from here:

• Breakdown of rental yield, capital gains and EU Referendum votes
• Quarterly findings on rental yields, capital gains and return on investment (interactive maps, updated quarterly)

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Note to Editors:

Data sources: The Electoral Commission, Land Registry, Zoopla

Contact

John Fitzsimons: [email protected] / 020 3864 6817

About LendInvest

LendInvest is the world’s first online lending business for property. The company was spun out of Montello, an offline bridging finance lender, in 2013.

LendInvest brought the speed, efficiency and transparency of online lending to the mortgage market for the first time. LendInvest has originated £699 million of property loans to landlords and developers, making it one of the most active short-to-medium term mortgage lenders in the UK. LendInvest borrowers have bought, built or refurbished 2,350 UK properties worth over £1.1 billion.

LendInvest became the only UK online lender to report two years’ of profitability in its first two years of trading, with profits for FY 2015 rising to £3.1 million.

LendInvest is authorised and regulated by the Financial Conduct Authority and became the first marketplace lender to be rated twice by a regulated European credit rating agency in 2015 and 2016.

For further information, please visit www.lendinvest.com and follow the company at @lendinvest.