Whether you’re a first time buyer or a seasoned property investor buying in a UK property hotspot can result in big returns. Picking out an area where property prices are affordable but will significantly increase can see your property value rise by a third or more.
If you’re looking for a property to use to make an investment there are somethings you should look out for, including local authority plans to regenerate the area, plans to improve transport links and people already living in the area investing in their own homes. These signs indicate that the area could soon be on the up, with new shops, restaurants and cafes moving into the area increasing property prices for both residential and commercial options.
According to research from Which? The top six up and coming areas include Liverpool, Bradford, Manchester and Coventry. The research analysed data from the Land Registry to assess where property prices have risen sharply but still fall below the national average of £200,000, indicating that they could increase further still and be a property hotspot that would make an ideal investment.
- Bexley DA18 postcode – Despite being in London, this postcode area of Bexley has an average house price of just £191,500 after a 32% increase since 2011. The south east London borough has excellent transport links that could entice commuters and with the average house price in the capital expected to reach £1 million by 2020 it offers excellent return prospects.
- Manchester M12 postcode – The M12 postcode area of Manchester offers low prices for a city. The average house price is now £98,000 after a 32% increase in the last couple of years.
- Salford M5 postcode – House prices in Salford increased by more than a third, with the average now reaching £127,890. With great transport links to Manchester this area is ideal for those that want to commute to the city.
- Bradford BD1 postcode – House prices in Bradford’s BD1 postcode area are now on average £57,000, an increase of 36%. The low average house prices mean that the area is still very affordable for first time buyers.
- Conway LL27 postcode – In a beautiful area of Wales, prices have increased by 41%, with the average house price reaching £185,000. The picturesque region is perfect for those looking to get away from it all.
- Liverpool L1 postcode – The L1 postcode of Liverpool also saw a huge 41% increase, with average house prices rising from £85,000 to £120,000. Liverpool is also included in the HS2 plans going forward, which could make the city easily accessible from London, Birmingham, Manchester and other major cities.