In a market where the prices are rising continually, very much like we have experienced in the UK since the mid to late 90’s, no investor or homeowner has really needed to worry about making money from property as up to 20% a year price increases were common. Now in the UK market there is much talk about stagnating house prices for the next few years.
So therefore it is much harder to find out where the potential growth areas are in the property market, the so-called hotspots. This is premium information and therefore there are al sorts of companies and businesses that charge for access to this. Some of these services maybe worthwhile but beware of the “become a property millionaire” promises. You can identify some hotspots with some simple research if your own.
Any new fast train line, tube line, main road will typically help “open up” an area to commuters who may now be able to get to a big city or employment area quicker. A prime example is the high-speed rail link in Kent, which has increased Ashford’s property prices by 100% over the last few years. The tube’s proposed East London line for 2010 and the cross rail project have had knock on effects in various areas including Streatham and Romford. In addition Virgin’s high-speed rail link has opened up markets like Macclesfield in Cheshire.
A major multinational moving to an area equals more jobs, equals more prosperity equals more demand for housing and therefore equals higher property prices. The moving of the Met office to Exeter and the plan for moving many of the BBC’s services from London to Manchester has had a knock on effect on property prices in the areas concerned. Beware the reverse happening though, for instance the closing of the Rover plant in Longbridge may have serious consequences on the local property market there.
The London 2012 Olympics , The Liverpool city of culture , and the Manchester commonwealth games have all seen a knock on effect to the local housing markets as a large number of jobs are created and investment is poured in to the areas.
Much of the property market is very localised. For example two roads with identical houses can vary in price greatly as this comes down to proximity to transport, school catchment areas, fashion and even snobbery. By getting to know your local area perhaps you can spot a potential opportunity if say you hear a new school, hospital or college is opening, an area nearby is getting overpriced and perhaps you will benefit from the overspill. Keep an eye on the local paper and keep an eye on where the developers are building and what they are building e.g. flats, old peoples home, executive houses, starter homes.
Since Maggie Thatcher revolutionised the UK housing market in the early 80’s by allowing council tenants to buy their own homes, UK property ownership has increased markedly. Home ownership in the UK is much higher than virtually all other European countries. The other factor is that demand has always outstripped supply. Remember we live on an island with 60 million people that fits into France roughly 3 times. Therefore areas with outstanding views, natural beauty, and a large amount of outdoor space can also attract premiums, worth bearing in mind perhaps if you think about some out of fashion seaside towns. How much longer will it be before they are the new Brighton?
The following areas have all been highlighted as growth areas in the last couple of years, please note this is not exhaustive and is based on different sources
There are many more, please let us know if you have potential property hotspots near you.
We have come across this service below called, property entrepneur, http://www.propertyentrepreneur.co.uk/trial.html , an interesting service which claims , for a subscription fee to get you access to below market value properties. An interesting service, worth the free trial perhaps.
According to John Howell, a large overseas property legal firm, the main areas to keep an eye for growth are the following:-
