The LendInvest Buy-To-Let Index now provides what they call 'the most comprehensive publicly-available analysis of the UK BTL market'.
The LendInvest Buy-To-Let Index, which will be published monthly, is taken from a range of proprietary sources of information and compiled by LendInvest's data science team. This information includes over a million data points (from the last month alone) from data provided by Zoopla; and data from the UK Land Registry.
The LendInvest Buy-To-Let Index provides a breakdown of the UK BTL market, in significant granular detail. For example, LendInvest's data science team have been able to calculate the average rental yield for all postcodes across the UK, and then broken this down by number of bedrooms.
The LendInvest Buy-To-Let Index is freely accessible on LendInvest's website, and provides various interactive graphs and charts, providing a powerful new tool for BTL investors.
Some interesting findings from October's LendInvest Buy-To-Let Index:
The average rental yield from BTL property is currently 5.9%pa for a 1 bedroom property, compared with a 4.6%pa rental yield for a 3 bedroom property;
The average capital gain for BTL property, over the last 4 years, has been 2.5%pa;
Over the last year, postcodes EC3, WC1 and WC2 have provided the highest total investment gains (year on year total gain of 25%);
The worst performing postcode in the UK, was L8 (Liverpool).
LendInvest CEO, Christian Faes, commented:
“The LendInvest Buy-To-Let Index is consistent with our whole ethos at LendInvest - providing investors with quality information, and bringing transparency to what is often an opaque market.
"We're aiming to provide investors, on both sides of our peer-to-peer marketplace, with as much information as possible on the UK BTL market. We are keen to ensure that both our borrowers and our lenders are making sensible and informed investment decisions.
"The LendInvest Buy-To-Let Index shows that BTL property is not always a great investment. There are many postcodes across the country that have experienced negative capital gains. The LendInvest peer-to-peer platform provides investors the opportunity to obtain a very decent return, lending secured against property, but without the hassle and risks associated with direct property investment."
