Revealed – where can 2021’s property investment hotspots be found?

23 December 2020 | Investment

As we look ahead to 2021, one of the biggest questions on the lips of property investors – as is always the case at the turn of a new year – is where the property investment hotspots of the next 12 months will be.

Luckily, the latest research from property developer StripeHomes has revealed where across the UK currently presents some of the most affordable property investment opportunities with the potential of a regeneration price uplift. 

The firm analysed property market data across 36 areas that are due to, or are already benefiting, from government infrastructure spending and regeneration programmes. 

It then examined the cost of investing in these areas based on the average property price in each postcode and how this compares to the average property price across the wider local authority. 

The Merseyside town of Bootle often appears in these lists, because of its low entry values and high yields, and it’s no different this time, with the town ranking top when it comes to affordability and regeneration potential in comparison to the wider local authority. 

The Destination Bootle project in Sefton has been described as the most significant regeneration project in the area for the last 30 years, while house prices in Bootle average just £96,176, some 43% more affordable than the average of £170,015 across Sefton as a whole. 

In addition to the area offering the best relative affordability, recent research from CBRE found that homes near regeneration zones attract an average 3.6% more price growth per year than properties in the wider local authority area, meaning properties in Bootle could soon start to command an additional £3,462 a year as a result of the ongoing regeneration in the area.

Nearby Wirral Waters in Birkenhead presents the next best option for an affordable investment into a regeneration hotspot, the research found. The area is currently home to an average property price of £120,346, which is 29% more affordable than the wider Wirral, where the average price stands at £170,169. What’s more, the current regeneration of the area could potentially add an additional £4,332 per year in house price growth. 

South Shields 365 takes the final spot on the podium for 2021’s property investment hotspots, with the first phase of the £100 million regeneration project already completed and breathing new life into the previously unloved town centre, as well as bringing a vital transport boost.

Despite this, the average house price in the area is still one of the most affordable in the country, at £98,519, 27% more affordable than South Tyneside as a whole. Again, the ongoing regeneration could see property price growth boosted by an additional £3,547 per year. 

The study revealed that there are no fewer than 10 other major regeneration projects across the UK that are currently home to a lower average house price when compared to the wider area. These include Purfleet on Thames, Northampton, Liverpool Ten Streets, Meridian Water, Old Oak Common, Wembley, Derby City Centre, Cardiff Central Square, Leicester Waterside and Firepool.

“With a vaccine now hopefully on the way, many can start looking with more certainty to the year ahead, and this is no different where property investment is concerned,” James Forrester, managing director of StripeHomes, said.

“The market has exploded of late with strong house price growth returning across the UK. This is likely to continue even after the stamp duty holiday has expired and so investing in bricks and mortar remains one of the best choices you can make.” 

He added: “There remains a wealth of areas where prices continue to sit at affordable levels compared to the wider area. With many of these locations currently undergoing extensive regeneration, they provide a great opportunity for investors to buy in at a lower price with an eye on the future.”

“This is primarily why we’ve seen such a boom across the north at present. Pandemic turbulence has caused many to think twice about investing in high-risk markets such as London, while in the north there are a wealth of great opportunities at a lower entry cost but with a greater potential of a return.” 

The table below shows all the property investment hotspots for 2021 where average prices are lower than the wider local authority.

Regeneration projects/programmes

Area of regeneration

Wider Local Authorities

Average Outcode Price

Annual Price Growth Regeneration Uplift

Wider Local Authority

Difference (%)

Destination Bootle

Bootle, Sefton

Sefton

£96,176

£3,462

£170,015

-43%

Wirral Waters

Birkenhead

Wirral

£120,346

£4,332

£170,169

-29%

South Shields 365

South Shields

South Tyneside

£98,519

£3,547

£135,846

-27%

Purfleet on Thames

Purfleet

Thurrock

£233,677

£8,412

£277,195

-16%

Northampton

Northampton

Northampton

£184,402

£6,638

£216,066

-15%

Liverpool Ten Streets

Liverpool

Liverpool

£124,718

£4,490

£145,679

-14%

Meridian Water

Upper Edmonton, London

Haringey, Enfield

£424,727

£15,290

£491,745

-14%

Old Oak Common

Park Royal / North Acton, London

Ealing, Brent, and Hammersmith and Fulham

£544,760

£19,611

£602,679

-10%

Wembley

Wembley, London

Brent

£490,235

£17,648

£522,324

-6%

Derby City Centre

Derby

City of Derby

£158,535

£5,707

£168,638

-6%

Cardiff Central Square

Cardiff

Cardiff

£204,154

£7,350

£216,491

-6%

Leicester Waterside

Leicester

Leicester

£186,056

£6,698

£191,543

-3%

Firepool

Somerset West and Taunton

Somerset West and Taunton

£241,234

£8,684

£247,023

-2%

Manchester Mayfield

Manchester

Manchester

£200,786

£7,228

£194,249

3%

Hartlepool

Hartlepool

Hartlepool

£114,261

£4,113

£109,497

4%

Aylesbury Now

Walworth / Bermondsey, London

Southwark

£549,039

£19,765

£520,771

5%

Chatham Waters

Gillingham

Medway

£264,709

£9,530

£248,730

6%

Birmingham Big City Plan

Birmingham

Birmingham

£208,107

£7,492

£193,774

7%

Port Loop

Birmingham

Birmingham

£209,981

£7,559

£193,774

8%

Acton Gardens

Acton, London

Ealing

£556,473

£20,033

£506,143

10%

Stockport Town Centre West

Stockport

Stockport

£270,315

£9,731

£244,995

10%

Old Kent Road

Old Kent Road, London

Lambeth, Southwark, Lewisham

£558,868

£20,119

£502,046

11%

East Whitlawburn

Whitlawburn, Glasgow

City of Glasgow

£165,482

£5,957

£144,828

14%

Elephant & Castle

Elephant & Castle, London

Lambeth, Southwark

£618,907

£22,281

£536,799

15%

Granton waterfront

Leith / Edinburgh

City of Edinburgh

£325,319

£11,711

£280,154

16%

Worcester

Worcester

Worcester

£260,490

£9,378

£220,633

18%

North Quay Hayle

Hayle

Cornwall

£290,542

£10,460

£245,867

18%

Ravenscraig

Motherwell / Carfin, Scotland

North Lanarkshire

£131,002

£4,716

£110,856

18%

Chesterfield Waterside

Chesterfield

Chesterfield

£198,850

£7,159

£167,315

19%

Bolton

Bolton

Bolton

£176,264

£6,345

£148,247

19%

Dundee Waterfront

Dundee

City of Dundee

£160,378

£5,774

£131,068

22%

Salford Crescent

Salford, Manchester

Salford

£213,818

£7,697

£172,350

24%

Earls Court

Earl’s Court, London

Hammersmith and Fulham

£1,154,116

£41,548

£779,570

48%

Hunstanton

Hunstanton

King’s Lynn and West Norfolk

£364,642

£13,127

£228,352

60%

South Kilburn

Kilburn, London

Brent

£864,571

£31,125

£522,324

66%

Sources

Property Data Outcode House Prices

CBRE 3.6% Regeneration Uplift in Annual House Price Growth

Gov.uk UK House Price Index

 

This post has originally been featured in Property Investor Today.