Luton is the best place for buy-to-let investments in the UK, according to a new study.

The Bedfordshire area has enjoyed a 7.37 per cent increase in rental price growth, according to a research by specialist mortgage lender LendInvest which looked at ​each postcode area around England and Wales.

The research looked at a combination of four critical metrics: capital value growth, transaction volumes, rental yield and rental price growth.

Previous table-topper Romford drops to 10th place following a 2.13 per cent decrease in capital gains and falling rental yields. Meanwhile, Manchester entered the top 10 following impressive rental price growth of 7.53 per cent.

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Christian Faes, co-founder and CEO of LendInvest, said: “Against a backdrop of all the political upheaval the country has endured in the last quarter, it isn’t surprising to see some significant changes in the performance of postcodes against one another. We’ve seen last quarter’s top performing postcode, Romford, fall nine places; while Manchester – unofficial home of the Northern Powerhouse – ascended to the Top 10 for the first time.

“These shifts, however, are more isolated than systemic and the fact that there has not been a greater shake-up in the top 10 buy-to-let postcodes signals the durability and resilience of the UK property market.”

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The Top 10 buy-to-let postcodes

Yield Capital gains Rental price growth Transaction volume growth Luton 4.54 per cent 12.83 per cent 7.37 per cent -10.40 per cent Stevenage 4.05 per cent 11.64 per cent 7.47 per cent -9.40 per cent Rochester 4.55 per cent 12.34 per cent 5.45 per cent -9.40 per cent Colchester 4.29 per cent 14.14 per cent 4.14 per cent -11.16 per cent Dartford 4.37 per cent 13.61 per cent 3.92 per cent -10.94 per cent Peterborough 4.71 per cent 9.04 per cent 6.98 per cent -10.67 per cent Southend-on-Sea 4.30 per cent 12.37 per cent 3.89 per cent -10.26 per cent Manchester 6.11 per cent 7.58 per cent 7.53 per cent -12.41 per cent Canterbury 4.36 per cent 9.34 per cent 6.62 per cent -11.49 per cent Romford 4.81 per cent 14.42 per cent 1.28 per cent -11.67 per cent

The Bottom 10 buy-to-let postcodes