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Top property investor hotspots released

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Top property investor hotspots released

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Scott Hendry | Together

Scott Hendry, director at specialist lender Together, looks at the rise in house prices across different regions, and what this means for property investors.

As we find ourselves firmly in the middle of quarter one of 2016 (yes, already!), we can be certain that April 1st will soon be upon us – with the buy-to-let stamp duty increase looming on the horizon.

Not that this has deterred property investors who, as predicted, have continued to seize the opportunities presented to them thanks to rising house prices. According to the latest figures from December 2015, house price annual inflation was 7.3 per cent in England and average house prices in the UK rose by £350 a week throughout 2015. Furthermore, data from the Council of Mortgage Lenders revealed that lending to buy-to-let investors reached its highest level last year since 2007, with the number of loans handed out having increased by 30 per cent on the same month in 2014.

So, what does this mean for your region and where is best for you to invest? We take a look at the areas that have recently hit the headlines.


East and South East of England

The East of England certainly looks like an attractive prospect for property investors. The 7.3 per cent annual house price inflation in England was partly driven by an annual increase in the East of 9.7 per cent. Average house prices in the region rose the fastest in the UK last year – increasing by more than £25,000 since 2014 to reach a new record figure of almost £315,000, the biggest yearly increase in the region since 2002.

The South East has seen 8.8 per cent year on year growth, with prices increasing to an average of £365,000, making it another appealing area for property investors. A persistent shortage of housing is the main driver for rising house prices, as demand far outstrips supply and it’s predicted that prices will continue to increase further, with approximately 7 per cent of homes expected to be million pound properties by 2030. With this in mind, the South East could present an interesting prospect for investors with a mid-range budget.

London

For those with a bigger budget, London, predictably, remains the most expensive region for house prices, with the average price at £536,000. Santander has predicted that by 2030, one in four homes in London will cost more than £1m, compared to one in 20 homes across Britain, keeping London firmly at the top of the property stakes.

North East

For those with a lower-level budget, purchasing a property in the North East may be the most viable option, as it’s the cheapest region to buy in England, with house prices averaging £155,000. For those property investors looking to procure property at a lower cost, this area could be an ideal starting point.
As we can see, investing in the UK housing market offers a variety of options for keen property investors. Set in a global context, with interest rates likely to remain low and the stock market volatile, property is certainly an enticing investment opportunity.

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More articles from Scott Hendry

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Research shows lack of awareness when it comes to alternative funding

Reflecting on a record-breaking month across the industry

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What's all the noise about Right to Buy?

Top property investor hotspots released



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Latest Comments

Paul
Paul 25 May 2016

Estate agents are pathetic when it comes to fees. They have this 'I had to do it at 1% because that's what the others were quoting' mentality. We are the most expensive agents in our area, charging double...

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HMO Midlands Landlady
HMO Midlands Landlady 24 May 2016

Tenants disappearing into the night is common from shared houses ( licensed and un-licensed HMO's) often when they owe considerable rent- they remove all their possessions, leave key in room and tell other...

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CommercialTrust
CommercialTrust 20 May 2016

With the bulk of the market controlled by large developers, profit rather than necessity determine the pace at which homes are built. There are hundreds of thousands of plots that have planning permission...

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Johna
Johna 20 May 2016

"Easier said than done" is what I would say. Of course, it would be more than great to have more in quality and affordability, but I do not trust talk anymore.. What is said is not what is happening.

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Johna
Johna 20 May 2016

in my humble opinion being fair like THE most important! I myself have had bad experience with unfair landlords... not to mention that I know how to do a proper end of tenancy cleaning since I am a fantastic...

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richardrawlings
richardrawlings 18 May 2016

NB - even if we doubled our commission levels in the UK, we'd still be by far the cheapest agents in the entire world.

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Agent_PeeBee
Agent_PeeBee 18 May 2016

Clueless. Someone needs to take these people's computers away from them so they can do no more harm than they already have.

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richardrawlings
richardrawlings 18 May 2016

Nonsense! The cost of selling a house nowadays has little bearing on the fees charged. Don't believe your own spin on this. Fees have spiralled down to pathetic levels in areas where weak agents have allowed...

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Simon Oliver
Simon Oliver 16 May 2016

The best solution is to buy a property that has built-in income generating potential: a nice house with a couple of gites in the grounds is a good start. In France, the rune of thumb is that one 2-bedroomed...

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WPD
WPD 12 May 2016

I suggest the answer is to have the notary system being one legal person who represents both parties. Having experienced it a couple of times in France it was a dream compared to our dysfunctional system....

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warren
warren 03 May 2016

It's enough to make me weep into my Pimm's :(

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james anderson
james anderson 03 May 2016

The sad demise of the croquet lawn...

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