The latest LendInvest Buy-to-Let Index report has revealed that Manchester is the top buy-to-let destination in the country.

Published every quarter, the Index ranks all 105 postcode areas in England and Wales on the following metrics: capital gains, transaction volumes, rental yield and rental price growth. From this, it identifies the top 10 buy-to-let postcodes and the bottom 10 buy-to-let postcodes for each metric.

This quarter, Manchester – commonly regarded as the capital of the government’s Northern Powerhouse agenda – knocked Luton off top spot, while Leicester broke into the top 10.

Hull, meanwhile, was 2017’s biggest climber, rising from 99th place in December 2016 to 6th place in the latest Index. The city’s performance may have been boosted by its status as the UK City of Culture 2017, which has led to increased exposure and press coverage.

Birmingham also climbed up the table – from 18th to 11th – as activity in the Midlands’ buy-to-let market soared. 

By contrast, Enfield in north London tumbled dramatically from being in the top 10 in February to the bottom 10 in December. 

As well as Manchester, Hull and Leicester, the top 10 also featured Colchester, Luton, Rochester, Southend-on-Sea, Romford, Norwich and Ipswich, suggesting that locations in the Home Counties and the East of England are the places to be when it comes to buy-to-let investment.

The bottom 10 buy-to-let postcodes, on the other hand, are mostly made up of areas in the North West and North East, including Bradford, Sunderland, Huddersfield, Bradford, Preston and Durham.

When it comes to capital gains, the best postcodes are all in London and its commuter belt, with Colchester, Southall, Hemel Hempstead, Slough and Harrow making up the top 5. Meanwhile, Cardiff, Swansea, Brighton, Newcastle upon Tyne and Truro all break into the top 10 when rental price growth is looked at on its own.

After Hull, the biggest climbers were Cambridge, Slough, Leicester, Portsmouth, Lincoln, Norwich, Gloucester, Ipswich and Truro.

“This month we see good news for the North and the Midlands as Manchester finally secures its spot in first place in our Index after a closely watched climb to the top,” said Ian Boden, sales director at LendInvest. “Cities such as Leicester (#10), Birmingham (#11), and Nottingham (#24) have also made significant gains in the Index, signalling a clear fuelling of the Midlands engine.”

He added: “Our biggest climber for the year was Hull. Since becoming ‘City of Culture’ back in January, Hull has received a new wave of confidence in the form of increased investment in the area, driven by higher rental yields. However, the lack of Northern dominance in the remainder of the Top 10 Climbers is interesting to note in light of recent headlines that have suggested property investment in the North will outperform that of other regions around the country.”