With the pandemic causing a surprising boom in the property market, the value of homes has begun to increase again across the UK. But where exactly are these property value hotspots? And how has the value changed in comparison to twenty years ago? Now is the perfect time for property investors to take advantage of the rising demand for homes – and the Stamp Duty holiday – and discover the best places to improve their property portfolio.
Mortgage loan company Ocean Finance has researched and reported the top property value hotspots in the UK over the past 20 years. Knowing where the properties with the best values are located can ensure investors can build a portfolio with only the most profitable properties. Ocean Finance’s research found that the average property bought in 2000 has increased in value by £96,979, equivalent to over three years’ salary.
Manchester has seen the highest price increase over the past twenty years, with a rise of 143% (from £73,910 to £179,537) across all property types. In close second comes Leicester, whose house prices have risen 132% since 2000, from £82,118 to £190,440.
One of the most surprising things to emerge from this research by Ocean Finance is that London didn’t make the top three property value hotspots. Over the past twenty years, house prices have only risen 116% from £364,366 to £786,760.
As a property investor, these figures can indicate the rising value of properties across the UK for years to come. This can help ensure you only invest in the most profitable areas for you in the long-term, avoiding pitfalls and mistakes. The slowest property value rises were seen in the North East and Northern Island, meaning investors can’t expect the same level of value-added when they come to sell their property. However, with Manchester topping the hotspot list, this also suggests that this area could be favourable for property investors.
Ocean Finance has even given insight into the most valuable property types. They reported that terraced houses had increased the most in value, by 96%, showing the increased demand for this type of property. With first-time buyers finding it harder to build deposits for larger homes, terraced houses have become more valuable for the young couple or working professional looking to get on the property ladder. Property investors can take advantage of this increased value and invest in property like this, in the most valuable areas like Manchester and Leicester.
It is also important to note that flats and maisonettes have risen in value at the same rate as detached homes over the past twenty years. This tells investors that some homeowners are looking for functionality over an excess of space. Property investors need to consider the demographic of future homeowners they wish to target, which will dictate the property portfolio they will build.
Reflection on Ocean Finance’s findings will ensure property investors are using the UK property market facts to support their investments and increase their profits.