Colchester is the UK’s buy to let hot spot, according to the latest market report from a leading lender.
Landlords in the Essex town are benefitting from younger homebuyers being unable to afford to buy – so they are looking to rent instead.
“Colchester’s rate of capital gain growth has subsided, having been one of the best in the country earlier in the year,” said the Buy To Let Index for the third quarter of 2018 from Lendinvest.
“It is now the progress of rental prices in the market that will drive the attraction of this postcode for buy to let investors. Homeownership amongst young adults has been in steady decline in the UK and Colchester’s rental market is thriving as a direct result.
“With development in the market limited, the private rental sector is providing buy to let landlords with ample opportunity to benefit from this trend.”
UK top 10 buy to let hot spots
UK bottom 10 buy to let not spots
Data source: Lendinvest