July 17, 2018

LendInvest BTL Index sees transaction volumes dip as remortgage deals spike

London, 17 July 2018 – LendInvest, the UK’s leading marketplace platform for mortgages, has released the latest LendInvest Buy-to-Let Index report.

Published quarterly, the LendInvest BTL Index ranks 105 postcode areas around England and Wales based on a combination of four critical metrics: capital value growth, transaction volumes, rental yield and rental price growth.

Key findings for July 2018

  • Luton (#1) reclaims top spot for the third time since since December 2016
  • Birmingham (#4) holds firm ahead of Manchester (#5) as the Midlands town presents key investment opportunity
  • Regional capitals Cambridge and Bristol break into the Top 10 (#6 and #8)
  • Inner London postcodes bounce back one year on; South East London jumps from #79 (June 2017) to #33

LendInvest has also published a special feature that investigates the reasons why transaction volume growth has slowed by as much as -6.77% on average across the UK. The special feature reflects specifically on recent findings by UK Finance that buy-to-let remortgages have increased in volume by 32.4%.

Ian Boden, Sales Director at LendInvest, said: “It’d be so easy to look at the underlying data that tells us transaction volumes are down and make dire predictions about the health and wealth of the rental market. Instead, what our Index proves once again is that looking at one metric in the housing market is never enough. One metric on its own can’t clearly define the performance of a city’s property market.

“Each of the very top performing BTL locations this quarter is experiencing a slowdown in transactions – substantial falls in places, dips in others. But, the best places this quarter continue to outperform the competition well thanks to strong performances on other, equally important metrics like rental yield, capital gains and rental price growth.

“Data from the BTL Index, UK Finance and our own experience as a mortgage lender strongly suggests that right now a ‘buy, hold and remortgage’ strategy is some investors’ preference while the market works through a possible slowdown.”

 

The Top 10 buy-to-let postcodes

The Bottom 10 buy-to-let postcodes

Transaction Volume Growth slowdown

 

Note to Editors:

  • Full PDF report available here
  • Embeddable map showing postcode areas around England and Wales can be downloaded from here
  • Data sources: Land Registry, Zoopla
  • Full underlying data available on request

About LendInvest

LendInvest is the UK’s leading platform for property finance.

LendInvest offers short-term, development and buy-to-let mortgages to intermediaries, landlords and developers. Its proprietary technology and user experience are designed to make it simpler for both borrowers and investors to access property finance.LendInvest has lent over £3bn of short term, development and buy to let mortgages.

Its funders and investors include global institutions such as HSBC, Citigroup and NAB, and, in 2019, it was the first Fintech to securitise a portfolio of BTL mortgages. The company has reported annual profitable growth since 2015 and was named Digital Innovation Award Winner at the Sunday Times Tech Track 100 Awards, and both Specialist Lender and Buy-to-Let Lender of the Year for 2019 at the last NACFB awards.

Media contacts

Leigh Rimmer

Leigh Rimmer

PR Manager
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