Inner London is the most lucrative place in the country for property investment, according to peer-to-peer (P2P) platform LendInvest.
Its latest quarterly buy-to-let (BTL) index ranked central London in top spot for capital gains, ahead of Cambridge, Watford and Outer London.
Despite this, Inner London only ranked 18th in the rental yields list, with the North of England dominating the table.
Christian Faes, CEO at LendInvest, said: “Next year, we could see some weakening in London’s dominance of capital gains tables if house price growth does soften slightly as forecast, and as new BTL stamp duty hikes take effect.
“Inner London margins may narrow slightly, creating opportunities for house prices in other postcode areas, particularly those in the south of England, to better compete.
“The Chancellor’s planned changes to mortgage interest tax relief and stamp duty for landlords will help to professionalise the buy-to-let market, for the benefit of tenants and aspiring homeowners.”
The index showed that the 15 top performing postcode areas for capital gains were all located in London and the surrounding areas.
12 of the postcodes also featured in the top 15 for average house prices.
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