The latest research by the 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.
StripeHomes analysed property market data across 36 areas that are due to, or are already benefiting, from government infrastructure spending and regeneration programmes.
StripeHomes then looked at 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 Destination Bootle project in Sefton has been described as the most significant regeneration project in the area for the last 30 years. Currently, house prices in the area average just £96,176, -43% more affordable than the average of £170,015 across Sefton.
As a result, Bootle ranks top with the most affordable cost of investing in an area of regeneration when compared to the wider local authority.
Not only does the area offer the best relative affordability, but research from CBRE has shown that homes near regeneration zones attract an average 3.6% more price growth per year than properties in the wider local authority area. This means properties in Bootle could soon start to command an additional £3,462 a year as a result of the ongoing regeneration in the area.
Wirral Waters in Birkenhead presents the next best option for an affordable investment into a regeneration hotspot. The area is currently home to an average property price of £120,346, -29% more affordable than the wider Wirral (£170,169). However, the 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. The first phase of the £100m regeneration project has already been completed breathing new life into the town centre and bringing a vital transport boost. However, the average house price in the area is still one of the most affordable of the lot at £98,519 and comes in -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.
There are no less than 10 other major regeneration projects across the nation 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.
Managing Director of StripeHomes, James Forrester, commented:
“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.
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.
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.”
|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%|
|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%|
|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%|
|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%|
|Firepool||Somerset West and Taunton||Somerset West and Taunton||£241,234||£8,684||£247,023||-2%|
|Aylesbury Now||Walworth / Bermondsey, London||Southwark||£549,039||£19,765||£520,771||5%|
|Birmingham Big City Plan||Birmingham||Birmingham||£208,107||£7,492||£193,774||7%|
|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%|
|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%|
|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|