Luton named Britain's best buy-to-let location
Luton is still Britain's best location for buy-to-let investors thanks to favourable yields and rental growth.
This is according to new research from LendInvest, which studied the investment potential of locations around Britain over the last quarter.
Luton retained the top spot thanks to homes in the town offering rental yields of 4.5 per cent, rental price growth of 6.81 per cent and capital gain of 10.29 per cent.
In second place was Colchester, which offered figures of 4.22 per cent, 13.02 per cent and 3.34 per cent respectively, while Hull was another strong performer.
The east Yorkshire city, which is currently the UK City of Culture, climbed from 33rd place to fifth on the back of greater interest in northern markets, as prices in London and surrounding areas continue to put off investors.
LendInvest sales director Ian Boden said the figures indicate there are "competitive market conditions" in some areas of the country, and that the issue of prices in London and the south-east "isn't being felt to the same degree elsewhere around the country".
"We would expect to increasingly see professional buy-to-let investors become cross country landlords," Mr Boden explained, adding that branching out beyond their local area to find good investment opportunities is a key way for landlords to diversify their portfolios.
One location landlords may be reluctant to invest in is Llandudno in Wales, where rental price growth and capital gains were just 0.39 per cent and 0.23 per cent respectively.
Crewe, Plymouth, Preston and Durham were also among the worst performers on the quarterly index.
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