The UK’s First Comprehensive Buy-To-Let Index

By AltFi on Thursday 23 October 2014

Alternative Lending

The world’s foremost peer-to-peer property lending platform – LendInvest – has just unveiled the most thorough Buy-To-Let index in the UK.

The now-monthly new index provides a detailed snapshot of the UK BTL market. Using over a million data points – supplied by Zoopla and the UK Land Registry –the index offers granular insight into a range of pertinent issues within the Buy-To-Let market. We’ve reeled off a few of its findings below:

  • 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).

Christian Faes, Founder and CEO of the LendInvest platform, 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.”

Mr. Faes is absolutely on the money in pointing to the benefits of increased transparency. The comprehensive new index brings newfound clarity to the market segment in which the platform’s investments are made (Buy-To-Let mortgages). That increased clarity is sure to play an important role in getting potential lenders over the hump and into the peer-to-peer lending space.

You can view the new index freely by following this link

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