Reports of a long-term impact on UK house prices are falling on deaf ears in some areas says Property Market-Index, which identified 10 locations likely to buck the national trend over the next three years.
The findings also indicate that after a correction in the 2022-2023 UK property market, it is forecast to grow 8.8% by the end of 2025 nationally.
The Top 10 locations identified by Property Market-Index’s ‘UK Property Hotspots 2023-2025’ are expected to outpace that national average for house prices.
The research covered hundreds of cities and towns across the UK and the Top 10 is a mixture ranging from revitalised seaside resorts to former industrial powerhouses uplifted by regeneration investment.
Amanda Collison, spokesperson for Property-Market-Index, which tracks key aspects of the homebuyers’ and property investors’ market said:
“The No1 in our report is Margate, a status upheld by recent media reports eulogising the Kent seaside town’s burgeoning arts and creative scene, kickstarted by the 2011 opening of the Turner Contemporary gallery but now powered by modern artists such as Tracey Emin, who grew up in Margate and is now living there and investing in regeneration along with many others.
“The town, famed for award-winning sandy beaches and bays and the bright skies and sunshine hours that originally attracted Victorian artist JMW Turner, is also luring film and TV productions: award-winning director Sir Sam Mendes used Margate for his 2022 hit ‘Empire of Light’ and a new TV series ‘Dreamland’ starring actress and singer Lily Allen is also based on the town.
“Near neighbour Ramsgate – also on east Kent’s Thanet coast – is No2, being reinvigorated by a mixture of the prestigious £60 million Royal Sands Ramsgate beachside development, its unique royal harbour status, and the Thanet Parkway HS1 station on the outskirts of Ramsgate opening this summer, bringing train times into London down to less than an hour.
“All this has led to Ramsgate and Margate being ‘discovered’ by buyers keen to enjoy the sandy coastline outlook and café culture living. Another bonus is the recent decision to re-open and invest in Manston Airport. Total regeneration investment locally is now running at over half a billion.”
Collison added that despite changing work/lifestyle trends of recent years, there are sizeable resurgent urban locations such as Liverpool, Aberdeen, Bolton, Derby, and parts of Birmingham and Leeds, benefiting from regeneration investment:
“Parts of London continue to regenerate, with Rotherhithe identified as the next ‘hot postcode’ in the capital, being close to the £3.3 billion Canada Water Docklands redevelopment.
“Regeneration money such as the Government’s Levelling Up project is ‘hothousing’ some formerly rundown locations: Liverpool has already attracted more than £14 billion of regeneration over recent years and has several property boom areas, while Aberdeen is being helped by £20 million in Government funding as it adapts to the winding down of North Sea oil and gas extraction.
“Bolton, a former Industrial Revolution powerhouse is also receiving Government and local capital to transform parts of the town and boost its aspirations to become a city.”
The ‘UK Property Hotspots 2023-2025’ report used these criteria: heritage, culture, infrastructure – such as transport and schools – investment in regeneration, and value for money/investment potential.
The candidates’ final index rating was then scored out of 100, leading to this Top 10: 1 – Margate, 2 – Ramsgate, 3 – Bolton, 4 – Liverpool, 5 – Reading, 6 – Derby, 7 – York, 8 – Rotherhithe, London, 9 – Aberdeen, and 10 – Burton. Looking at the UK property market generally, the Property Market-Index report concluded that it remained resilient, with investors bullish about prospects: values could fall initially by up to 5% this year before recovering by 8.8% over the next three years, with hotspots climbing even higher for all the reasons outlined int this report.
The Property Market-Index report can be downloaded here.
Property Market – Index is a leading research and reports platform for UK property market data and insights. Our mission is to provide investors and professionals with accurate information on property prices, yields, and market trends in key locations around the UK. Using proprietary algorithms and comprehensive databases, we deliver intelligence and insight into emerging trends within the UK property market.