5 signs you’re buying in an ‘up and coming area’

With the average UK house price rising by £17,000 to £310,000 during the last 12 months, making your money (and that carefully saved house deposit) go further is certainly on the agenda for first-time buyers as well as homeowners looking to move onwards and upwards.

One way to purchase a property that suits your requirements and provides an excellent investment is by buying in an up-and-coming area as Point2 details:

“As real estate trends in the area are picking up, your property will increase in value in five or ten years’ time, and you can find yourself in a very desirable spot where you can sell your home for more than the initial purchase price. If you bought a house rather than built one, renovations will also add to its value in the long run.”

It’s not just in five to ten years that you’ll reap the rewards of your decision to buy or build in an up-and-coming area. 

You’ll pay less to buy in an up-and-coming area when compared with purchasing property in an already established and popular location. This means you’ll be able to get onto the property ladder quicker (you’ll need less money and therefore a lower deposit to secure finance) or have more funds to personalise your new home once you move in.

There is an art to buying in an up-and-coming area, however. Read on to discover the signs of an up-and-coming area, and become one step closer to making the perfect property investment.

1. It’s on the border of a desirable area

The ‘spillover effect’ is a much talked about topic. Areas that sit on the border or within close proximity to already popular and desirable destinations are generally next in line for development and regeneration. So why not identify your dream location (an area that you’ve been priced out of) and cast your search net outwards to pinpoint the up-and-coming area for you?

2. There’s a growing number of new builds

Many professional investors and developers live by the spillover rule when searching for the next properties to add to their portfolios. It should therefore come as no surprise that up-and-coming areas get plenty of attention from both.

A growing number of new build developments (or associated planning applications) is a sure-fire sign that our area is on the up. But beware of buying in a location that has too many new builds. As developments finish and properties flood the market, it could negatively impact the value of surrounding real estate.

3. There’s more development activity

It’s not just planning applications from housing developers that indicate a desirable area of the future. Plans for the building and/or opening of new schools, supermarkets, restaurants, cafes, shops and other amenities could increase value within the area as well as boost its desirability in the coming months or years.

Larger regeneration plans should also be viewed as positives. Regeneration plans provide more job opportunities and better quality of life, which means an increasing number of people are likely to want to live in the area.

4. Transport links are being improved

The same theory applies to any planned transport links, whether it’s the addition of a new train station, tram network or major road link. With new transport links, the most unassuming town or village can become a paradise for commuters and make it a popular area to buy property.

5. The neighbours are renovating too!

The state of surrounding properties can have a positive or negative impact on the value of a home. If you notice lots of renovation work going on throughout the area, don’t see that as a bad sign.

Don’t be deterred by the sight of scaffolding and skips. If local homeowners are investing in their properties – whether they’re maintaining, improving or extending – you may have found the area at just the right time.

Looking to buy a property in an up-and-coming area? Contact our team to secure the mortgage advice and support you need to finance your purchase.