Top property investor hotspots released

Top property investor hotspots released

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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Latest Comments

Spencer Fortag
Spencer Fortag 30 Nov 2016

I am glad that someone listened to me!

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Tony Gimple
Tony Gimple 27 Nov 2016

It's not just the lack of estate agency advice that's costing landlords money; most are getting seriously bad advice from their accountants resulting in tax bills far higher than they need to be. Likewise,...

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Sally Walmsley
Sally Walmsley 18 Nov 2016

The RLA stands by its sell-off statistics. While we welcome the feedback from Mr Jagota and are delighted to hear how well things are going for landlords in the north east, we would like to make it clear...

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Sheryl87
Sheryl87 18 Nov 2016

The high employment levels and the vibrant economy has led to ever-increasing demand for rental properties, especially from professionals relocations from other cities. This has led to more experts teaming...

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Sheryl87
Sheryl87 18 Nov 2016

Renting out your house can be risky business. It's good to think about residential landlords insurance. Standard cover includes buildings cover and cover for loss of rent following damage to a property...

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AmberMorris
AmberMorris 09 Nov 2016

Fear of ghosts, really?? Ok, I get the fear of bats in the attic and mice and rats running under your nose - those are easy to deal with pest issues which are really unpleasant and can turn you off. But...

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AmberMorris
AmberMorris 08 Nov 2016

In my experience, It has always been a matter of discussion between the landlord and the tenant. There are cases when it's clear who's responsible for the pest control costs. I see a lot of people in forums...

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warren
warren 08 Nov 2016

There you go buddy :)

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Agent_PeeBee
Agent_PeeBee 07 Nov 2016

Any reason why my comment to this 'article' has not been published?

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Sean Lees
Sean Lees 04 Nov 2016

I don't think anyone can say dogs or cats are better or worse; depends on the animal, its age, how long it's left inside, etc. How bad the mess is depends somewhat on whether you are renting furniture...

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daniel black
daniel black 25 Oct 2016

I've been keeping a close eye on what the effect of Brexit has been on the rental market and it's a very mixed bag. Whilst the majority of the news focuses on London's market. I think this time next year...

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Northerner
Northerner 20 Oct 2016

Any views from outside the M25? No wonder politicians can't get the housing big picture when everyone seems to think that London is the yard stick, when it absolutely is not.

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