LendInvest launches Buy-to-Let index
03 November 2014
The world’s biggest peer-to-peer platform for property, LendInvest, has launched an index on the UK Buy-to-Let (BTL) property market.
Published monthly, the LendInvest Buy-to-Let Index is taken from a range of proprietary sources of information and compiled by LendInvest's data science team. This information contains more than a million data points (from the last month alone) on stats provided by Zoopla, as well as data from the UK Land Registry.
The index offers a breakdown of the UK BTL markets, analysing trends in minute detail. For example, LendInvest’s data science team have calculated the average rental yield for all postcodes across the UK, and then broken this down by number of bedrooms.
Some interesting results were seen in the firm’s inaugural Index. The average rental yield from BTL property is currently 5.9% per annum for a one bedroom property, compared with a 4.6% per annum rental yield for a three bedroom property. Furthermore, the average capital gain for BTL property, over the last 4 years, has been 2.5% per annum.
Over the last 12 months, meanwhile, the EC3, WC1 and WC2 postcodes have provided the highest total investment gains (year-on-year total gain of 25%), whilst the worst performing postcode in the UK was L8 (Liverpool).
“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,” Christian Faes, LendInvest CEO, 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.”
He added: “The 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 with the opportunity to obtain a very decent return, lending secured against property, but without the hassle and risks associated with direct property investment.”
The BTL Index is freely available on LendInvest’s website and provides a range of interactive graphs and charts, and other useful tools for property investors.