Top property investor hotspots released

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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Latest Comments

ChristinaReedUK
ChristinaReedUK 20 Jun 2016

I don't understand why it's always a war between the two sides. Either, way the landlord is probably keeping a detailed inventory and will see the changes you've made. I just don't understand why there...

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NathanGreen
NathanGreen 16 Jun 2016

Seeing that the tenants are quite satisfied with their landlords and the properties is indeed great. I wonder, though, what is the situation in London alone? The tenants face sky-high rent levels in the...

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AndiMur
AndiMur 15 Jun 2016

TheGuardian published the same forecast. But on the other hand, professional brokers express different opinions. According totranio.com, an exit from the EU would not affect the demand/supply imbalance...

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Gary Holmes
Gary Holmes 14 Jun 2016

Having a professionally completed inventory at check-in and check-out is clearly (to me at least) of minor value. Tenants make un-authorised modifications and/or walk off with items that belong to the

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Violet Gibson
Violet Gibson 14 Jun 2016

Cautious people think buying off-plan is reckless, but over the past few years investors have literally made fortunes.Pre-release prices have obvious benefits for the developer, who gets instant finance...

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Kate Windleton
Kate Windleton 14 Jun 2016

An interesting research indeed. I guess that is in complete contrast with the United States where people often move from one coast to another. It will be interesting to hear the trends for people moving...

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NathanGreen
NathanGreen 14 Jun 2016

I think it all depends on the market conditions and how well your company is doing. You will agree that you can't demand more when you're killing yourself just to hang in there. Sometimes you need all

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ChristinaReedUK
ChristinaReedUK 13 Jun 2016

What does "detecting a bad vibe" mean actually. I've had certain vibes like these and yet have always found a reason , if there's any, why I don't like a certain property. The property maintenance might...

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keybanks estates
keybanks estates 08 Jun 2016

Great News for first time buyers, about time two!

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NathanGreen
NathanGreen 07 Jun 2016

I agree with #6 - you should maintain your garden according to the target buyer. One thing is universal, though - cleanliness and order. Having the yard clutter-free and clean will help people who do enjoy...

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NathanGreen
NathanGreen 06 Jun 2016

I will always say that London is overrated. Sure it is the capital, but it's too stuffed in there. It's more of a business city to me.

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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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