Arthur takes a look at the UK’s newest property hotspots to find out what’s next for Britain’s property prices…
According to the latest ONS house price index survery released this December, average house prices in the UK have increased by 6.9pc in the year to October 2016, continuing the strong growth seen in this sector since 2013. Surprisingly, London’s more typically flashy areas, such as London City, Chelsea and Kensington, have actually seen property price decreases. The emerging property hotspots coming out on top this time round are in fact: Basildon, Slough, Barking & Dagenham, Luton and East Renfrewshire. Arthur takes a brief look into what’s going on with property in these particular areas.
Essex’s Basildon has shown house price increases nearing on 20pc this past year, bringing average house prices up to £301,633, which is just above the UK average. 96 trains run between Basildon’s 3 stations and London Fenchurch Street per day, with quickest journey times taking just 34 minutes. After all, when this new town was built just after WWII, it was intended to accommodate London’s population overspill. Therefore, it is no wonder that Basildon is increasingly popular with the capital’s commuters. Topping the list of the UK’s newest property hotspots, Basildon is certainly an area to keep a close eye on if you’re keen on expanding your portfolio.
Home to the UK’s famous sitcom, The Office, Slough is coming up just behind Basildon’s house price increase, with a staggering 19.6pc this past year. Slough is already relatively well connected with the capital and of course London’s Heathrow Airport. However, property experts suspect that these more recent price increases are a direct result of the planned Crossrail Elizabeth Line, which will significantly reduce journey times between Slough and central London by 2018. Slough has typically been popular with families searching for more spacious properties in order to accommodate a more comfortable and affordable family lifestyle, whilst still remaining within commuting distance from London. Crossrail will surely bring more commuters to this area over the coming years.
Barking & Dagenham:
Barking & Dagenham is the only London borough where average house prices are still below the £300,000 mark. But with a price increase index of 18.2pc this year, this average isn’t likely to stay at the very affordable £287,978 for long. The government has plans to build and create thousands of new homes and jobs in this borough over the coming years, not to mentions TFL’s plans to build a new tunnel in order to extend the Overground to Barking Riverside. As London’s most affordable up-and-coming borough, it isn’t surprising that Barking & Dagenham has made it onto the top 5 UK property hotspots.
Houses are still very affordable in Luton and its surrounding areas, coming in at an average of just £229,110. With an abundance of good schools and very close proximity to the international Luton Airport, it isn’t surprising that many families are choosing Luton as a place to settle down. Like many of the other hotspots in this list, Luton is also becoming increasingly popular with commuters and first-time buyers. For anyone on the hunt for a great buy-to-let investment opportunity, Luton should certainly feature highly because of its promising rental capital and prospective capital growth – house prices have increased by a whopping 17.7pc to October 2016.
Scotland’s one and only addition to this list of the UK’s newest property hotspots, East Renfrewshire has also seen house prices increase by 17.7pc over the past year. At an affordable £222,523, average house prices here are higher than the neighbouring big city of Glasgow. East Renfrewshire is also home to an especially high standard of educational institutions, making it attractive for families whose parents commute in Glasgow for work. If prices continue to increase along with the current trend, this is certainly a place to keep our eyes on for future investment opportunities in Scotland.
Looking over this list of hotspots, it seems that all of these places have one thing in common: they’re becoming increasingly popular with commuters. All of these places would make sensible investment prospects, whether to buy property for personal use or to invest via buy-to-let, considering their attractive prospective capital growth over the coming years. If indeed these price increases are set to continue over the coming months, Arthur would suggest investing sooner rather than later areas whilst the house prices remain in affordable price brackets. We advise keeping up to date with the following ONS house price index survey in order to confirm which hotspots are worth the investment.