The UK’s newest property hotspots

Published 11th Apr 2008

12 deprived towns and cities in the UK could soon become prime investment locations…

Some of the most deprived areas of the country are set to become property hot spots thanks to the government’s Pathfinder Funding Programme, which will see £1billion of government cash set to revitalise the property markets of 12 Redundant and troubled neighbourhoods. According to Property Secrets, these areas will become more attractive to both owner-occupiers and potential tenants, and property values could escalate and accelerate above the UK average.

Five areas, including East Lancashire, Manchester and Salford, Merseyside, North Staffordshire and South Yorkshire, are guaranteed to receive more than £100 million. Other areas to receive up to £95 million, over the next three years, are Newcastle (£95m), Oldham (£90m), Hull and East Riding (£87m), Birmingham Sandwell (£53m), Tees Valley (£35m) and West Cumbria (£6m). Manchester and Salford are to receive a massive £140 million, with £52 million guaranteed over the next 12 months.

A National Audit Office study found the Pathfinder Funding Programme has succeeded in raising property values beyond the comparative levels of other regions with similar problems, which are not part of the scheme.

Huge investment
Neil Lewis, CEO of Property Secrets, said: “This is just one of the persuasive arguments why property investors should consider targeting these locations now before they start improving and their values go up. This huge investment of £1billion will breathe new life into these local property markets and contradicts reports that the UK property market, particularly for the buy-to-let investor, is dead.

“The UK buy-to-let market is pretty stagnant right now and you really need to know what you are doing if you are considering investing – make sure any property is significantly below market value. However, these pathfinder areas represent a great investment opportunity, but it is essential to buy at the right price and we would recommend a target of at least 15% below market value.”

“These pathfinder regions are certain to become more popular over time and we will see a new breed of owner-occupiers and tenants migrate into these areas. But speed if essential for any property investor interested in these areas if they are to secure units that are best placed for price enhancement now rather than later.”

Source: ' Move Channel Ltd '

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