5 Ways To Spot Up-And-Coming Areas
Is there a sure-fire way to spot up-and-coming areas, homes or suburbs that are likely to become desirable and deliver house price growth for investors? The answer is, well, not really. Without a crystal ball, no one really knows until the area has already started becoming desirable. This means you may have lost the best property growth profits as an investor.
But while it’s no simple feat to choose an area where there is potential to find house price growth and decent yields, there are a few clues and trends to look out for that can help you to determine if an area is up-and-coming.
Here are the top 5 things you should keep an eye out for in order to spot an up-and-coming property area.
Young People & Property Spots
One of the first signs of an up-and-coming area is an influx of young people. Young professionals in their 20s and 30s are often the trendsetters when it comes to the next best areas to invest in property.
This pattern can be seen in previous up-and-coming areas in London like Brixton and Peckham. Also, Bristol which rapidly grew into one of the UK’s most desirable places to live. And northern cities like Sheffield, Leeds and Manchester as part of a young exodus from London.
Young people tend to have lower budgets but still want a high quality of life and have a habit of gravitating to areas that are on the cusp. This influx of people increases demand for housing and drives up prices in these areas. Furthermore, businesses flock to these newly popular areas to cater to the growing population. From new restaurants to trendy boutiques, these businesses add even more energy and life to the area. The result is an exciting neighborhood full of life and opportunity.
Looking for the next best place to invest in property? Follow the young people for the next property hotspot.
An influx of Businesses & Property Prices
When mid to large employers move or relocate to an area or city, this is a good indicator that property prices may rise and the area is up-and-coming. Businesses are likely to recruit or relocate staff, and that means an increase in the demand for properties which drives up house prices.
An influx of businesses also tends to come with an expanding job market, and as a result, more individuals are likely to consider relocating to the area, making demand for housing continue to rise. One example is the expansion of the BBC within Manchester MediaCityUK which continues to boost demand for the local and regional property market, and the Salford area in particular.
The knock-on effects of businesses relocating to an area are far-reaching. New businesses can bring new infrastructure and amenities such as roads, schools and leisure facilities which add value and improve the quality of life in the local area. All these factors contribute to making an area more desirable, resulting in further increases in house prices over time.
Regeneration and Incoming Investment
Areas and cities that are receiving investment in infrastructure and amenities can be a good indicator that the area is up-and-coming. For example in Liverpool, investment is transforming its waterfront. From the Marina to Liverpool Waters in the North, transforming the area into a destination in its own right. A number of infrastructure projects support the transformation, including Lime Street, St Georges and the Knowledge Quarter. All this investment has a knock-on effect in making Liverpool more desirable to live in, bringing an influx of people and giving property prices a boost.
Thanks to such an extensive investment, Liverpool is now considered as one of the best areas to invest in property.
The transformation of Liverpool is an example of how investment can help an area to develop. The construction of new buildings, the renovation of existing ones, and the improvement of public spaces all help to make the area more attractive. This in turn helps to attract businesses, as well as homeowners looking for a good place to live.
Prospective House Areas & Amenities
Areas that are well-serviced in terms of amenities – shops, schools, supermarkets – can indicate how desirable an area is likely to be. Neighbourhoods that have amenities within walking distance tend to indicate that an area is up-and-coming and increasingly desirable to tenants and those looking for a buy-to-let property.
The trend regarding amenities also applies to cities and towns in a broader sense. If there are convenient services nearby, such as a transport hub or a new retail area, it’s likely that the area will become a hub for homeowners.
Another indication is the number of estate agencies in the surrounding location. If there are a few operating in the local area, this is an indicator that house price growth is likely in the short term at least.
Transportation & Property Spots
An increasing number of connections or growing transport links is another way to spot up-and-coming areas in terms of property price growth. For example, if you are looking to find a property or spot a home in London, it’s a good strategy to look at major transport links and trace them to areas that are further out. A few stops from hubs or stations is where property prices are likely to grow.
In cities outside the capital, the same is true. A few stops further out – whether tram or bus line – is where property prices are likely to increase in the coming years. Especially as people move into less expensive areas where there is still convenience. The pattern is also true for commuter towns – places like Luton, for example, are cheaper than London, but still offer plenty of potential for house prices to rise.
How do you Find a Property with Potential?
With any property, an investor wants to be sure that it has the potential to increase in value. Here are a few factors you should take into consideration:
Location is one of the top criteria that should be on your house-hunting list. Focus on proximity to public transport, amenities, business hubs and schools. These are all indicators that the property is in a location with strong potential for price growth.
When looking for a property to invest in, it is important to consider the area’s future potential. This means researching the local council’s plans for the area, such as new infrastructure or development projects. It is also important to look at the local crime rate, as this can have an impact on property prices and resale value.
Type of property
Pay attention to the property and its structural aspects. While it may not look perfect, make sure it has the right skeleton. That, with a bit of work, can be transformed into an ideal investment or buy-to-let property.
When it comes to assessing the property’s structure, you should look for any signs of wear and tear. That includes checking for damp, rot, and any other signs of damage. It is also important to check the roof, windows, and walls for any cracks or other issues. You should also check the plumbing and electrical systems to make sure they are in good condition. If there is any sign of disrepair or damage, you will need to factor this into your budget when considering the property’s value.
Outdoor space is in more demand than ever. Before you make a decision, it is important to consider the outdoor space of the property. Gardens are becoming more and more important as people look for ways to relax and entertain in their own homes. The size of the garden should be considered; is it big enough for a seating area, or even a pool? Also, take into account how private the garden is. If you are looking for a private space to relax in, then make sure that there is good fencing or screening around the garden that will keep any prying eyes from looking in. Lastly, consider whether there are any outbuildings such as garages or sheds that could be used as extra living space if desired.
What Are Some Ways to Add Value to Your Property?
Be sure to look out for ways you can add value to a property. This could be by expanding its footprint whether building up into the loft, for example, or building outwards into the garden. Restoring old features can also add value to a property. As well as making practical changes like renovating the kitchen or bathroom. Open plan living areas are another great opportunity to add value to a home, as is adding a downstairs toilet.
It is also important to consider the external features of a property when looking for ways to add value. These changes can make a huge difference to the overall look and feel of the property. Finally, installing energy-efficient features such as solar panels or double glazing will also add value to your home by increasing its energy efficiency rating.
How do you Predict the Future Value of Property?
It can be tricky to predict the exact future value of a property. But there are few clues that the house or apartment could be due for significant growth.
Local and Regional Investment
Look at where the local council is investing. This is likely to make an area increase in desirability and add a boost to house prices. Large-scale, city or regional regeneration projects are also a good indicator that the property market is set to rise.
Days on the Market
Days on the market is another indicator that a property is likely to increase in value. This refers to the number of days between a property being listed on the market and the day it is sold.
A decline in days on the market is a good sign indeed. A sign that an area might be about to achieve up-and-coming area status due to strong demand. Keeping note of areas with low days on the market can help you stay one step ahead of other investors.
When it comes to ways to spot an up-and-coming property investment area, nothing is certain! Although, there are patterns and trends that can be good indicators. Whether keeping an eye on incoming investment, looking to where young professionals are flocking or considering amenities and transportation links. These subtle and not-so-subtle clues can help you to narrow down your search. This will help you zero in on areas that make a good investment for property. To find out more about up-and-coming property investment destinations, get in touch with our team.