LendInvest, the world’s largest peer-to-peer platform for property, has launched an index on the UK Buy-To-Let (BTL) property market. The LendInvest Buy-To-Let Index now provides 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.
October’s data revealed 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.
While the average capital gain for BTL property, over the last 4 years, has been 2.5%pa.
Unsurprisingly, London postcodes EC3, WC1 and WC2 have provided the highest total investment gains with a year on year total gain of 25%. The UK’s worst performing postcode was Liverpool L8.
LendInvest CEO Christian Faes said: ‘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 has 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.’