The best place in the UK to invest in a buy-to-let property has been revealed to be the Essex town of Colchester.
New research has identified the historic town as the ultimate spot for property investment based on rental yields, rent increases, capital growth and sale volumes. The study by LendInvest found Colchester offers average yields of 3.71 per cent, capital appreciation of 9.98 per cent, rent rises of 3.41 per cent and sale volume growth of 2.79 per cent.
Once all four categories were considered, Colchester proved to be the number one location for investors ahead of Northampton, Leicester, Luton and Birmingham. Manchester, Ipswich, Brighton, Rochester and Norwich made up the rest of the top ten.
Allison Thompson, lettings managing director at property specialist Leaders, says: “The benefits of buying to let are considerable; the major challenge for most investors is picking the right property in the right location to ensure the maximum return.
“Colchester offers a combination of excellent rents, high capital growth and a busy market. It is the perfect place for landlords to expand their portfolios.
“Every investor is different, with some focused on short-term capital growth benefits and many others preferring to prioritise rental returns and overall yields. Whatever your aims, the best option is to work with a local, trustworthy letting agents that can offer expert insight into the market and help you to identify golden opportunities.
“Taking all factors into consideration and striking the right balance is the key to making a shrewd investment and professional support will guide you in the right direction.”
The study also found the Midlands and the south-west have performed particularly strongly in terms of house price growth in the last six months, with Truro and Birmingham recording the most significant upswings.
For more information or advice on letting a property in your area contact your local Leaders branch.