With house prices widely expected to continue travelling upwards in the coming months, now might be the time to think about buying that investment property. We all know that London is supposed to be at the heart of the property boom, however the impact of the capital’s rising prices is causing a ripple effect across the rest of the UK, creating several hotspots.
Here are five cities tipped for their property investment potential:
Trafford – The North West is the UK’s third most populated region and Greater Manchester is experiencing something of a renaissance of late, with many large companies relocating to or opening offices in the vicinity (think the BBC at Media City in Salford). As such, Trafford is one area where property values are expected to rise significantly in the future.
Solihull – Officially named the West Midland’s ‘most affluent area’, ahead of Stourbridge and Sutton Coldfield, experts predict that Solihull will experience some big price rises, thus it might pay off to get on the local property ladder now. It apparently enjoys some of the lowest council tax rates, too. It’s an area that could also benefit from the HS2 in years to come.
Bristol – New developments in the city centre, like the multi-use Cabot Circus shopping, entertainment and apartment complex and the harbourside Finzels Reach (where a one-bed flat is up for sale at £230k) have attracted a lot of attention lately. It’s not just the centre itself, the boom is said to have reached the commuter belt outskirts too, with values up 70 per cent compared with just ten years ago. It’s rumoured that the go-ahead has also been given for a 12,000-seater events arena, to make the area even more attractive.
Maidenhead – This area of Berkshire will benefit from the Crossrail project when it is open to the public in 2018, enabling scores of people to more easily get into and out of London. It wouldn’t be surprising, therefore, if it witnesses a surge in property market activity. According to The Telegraph, 30 per cent of its population currently lives in rental accommodation – lots of opportunities for investors, clearly.
Southampton – Research carried out by HSBC discovered that this nautical city delivered the best buy-to-let return on investment a few months ago (7.82 per cent rental yield before tax). A university town, there are always plenty of students looking for homes and with some pretty big businesses calling it home, Southampton could still be a hotspot.
If in doubt as to where the next hotspots may be, the experts say the key is to watch out for new additions to an area. If a Starbucks or Waitrose suddenly appears, then you could be onto a winner.