For investors and landlords, keeping your ear to the ground is necessary when attempting to find the next property hotspot. There are a number of elements that can impact a location's value and potential, so if you’re aiming to find the next up and coming area, here are a few things you need to know…
Local schools can give you a good insight into the potential of an area. Look for secondary schools that have been turned around and have started to achieve good Ofsted reports. This is normally a good sign and shows that an area is on the up. Excellent Ofsted reports will attract new people into the area and buyers will pay a lot more for properties once the junior and senior schools in the area have had three or four years of good reports. For a detailed look at the rankings of primary and secondary schools within the UK, head over to Locrating.
It really goes without saying that transport links are important. Plans for new railways and roads are strong indicators. Look at the investment that is being made by the local council into infrastructure and how this will benefit residents and visitors to the area. The planned Crossrail which is set to connect North East London and Essex with Heathrow and Reading is predicted to add £5.5 billion to property values within its radius.
Age demographic is crucial when determining the areas that will experience the most growth. A high proportion of people in their twenties and thirties can point to an area that is up-and-coming where more disposable income will be spent and more money invested in the community as a result. This will also lead to house price growth which means that those in the know could make a substantial profit in a relatively short space of time.
London is unquestionably the epicentre for landlords and property investors aiming to make a profit. Property prices in the capital are rising year upon year with the average price of a new build expected to rise 25% by 2018. With London you’ll find that potential hotspots are situated around the outskirts of the city, with areas boasting good train/tube connections fairing best. Locations in the capital that are currently expected to boom are Tottenham, Newham and Thornton Heath.
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- 26 October 2015