Colchester is the best place to invest in buy-to-let properties based on rental yields, according to the latest LendInvest BTL Index.
Stockport came in at second place overtaking regional leader Manchester, which came in at number three.
At a particularly jittery time for the property market, the quarterly Index is a good indicator for buy-to-let landlords as to the best places for long-term investment.
The Index ranks 105 postcode areas in England and Wales based on a combination of four critical metrics: capital value growth, transaction volumes, rental yield and rental price growth.
Despite top billing for the Essex town, this quarter’s results revealed that towns in the South-East have lost their momentum, while smaller towns in both the North and Midlands are gaining strength and overtaking their bigger neighbours.
Birmingham, Canterbury, Coventry, Wolverhampton, Peterborough, Enfield and Luton made up the top 10.
Ian Boden, sales director at LendInvest, said: “Locking down a solid prediction of how the landscape will look into the New Year is no easy task. In this instance, we know it is best to let the data do the talking.”