The best buy to let property investment hotspots in the UK have been revealed and it appears that the Midlands offers the best opportunities.
According to LendInvest, the property finance experts, the Midlands has been unaffected by the house price growth slowdown being seen around the UK with three of the top five places for investment now being in the region.
In an index, LendInvest looked at 105 postcode areas in England and Wales, taking into account a number of criteria including rent price growth and rental yield.
The number one BTL hotspot is Colchester which takes first place after a long period in the top three rankings. Landlords in the city should enjoy the second highest rate for capital gains with 9.98%.
Among the attractions for Colchester is its high rental demand thanks to the quick commuting links to the capital and cheaper than average house prices for the region.
In second place is Northampton which climbed 19 places since the firm’s last index published in December.
This Midlands city is "one to watch"
Northampton has seen strong capital gains in the last three months and over the past year. LendInvest says this Midlands city is "one to watch".
The index highlights that rental growth underpins Leicester's strong property market to place it in third place. Luton is in fourth place.
And other strong performer saw Birmingham rising six places to claim fifth spot and it is not all bad news for BTL investors in the south-east with Brighton claiming eighth place.
The index also highlights potential areas for future strong performance and points to Bristol, Swindon, Gloucester and Truro for closer inspection.
The sales director at LendInvest, Ian Bowden, said: “There are reasons to be cheerful and looking at the south-west and the Midlands where we can see buoyant market activity.
“Striking the balance for a property investment is crucial and we expect investors to take a longer term position with property as they look to rental price growth and yields in the short-term to help determine and assess profitability.”
Mandatory code of conduct for letting agents revealed
Meanwhile, the government has unveiled the mandatory code of conduct for letting agents in a bid to crackdown on rogue agents.
The moves will see the introduction of a nationally recognised qualification and there will also be a new regulator to help police the new standards and those who fail to comply will not, the government say, be permitted to trade.
And for those agents who commit serious code breaches then they will face prosecution.
