Property investors have long wished for a crystal ball to predict the next growth areas.

You don’t need to be a fortune-teller to spot the next growth areas in the UK. You just need to know what you’re looking for.

UK property journalists Cheryl Markosky and Robert Liebman gave us their tips on finding investment property ‘hot spots’.

  • Look for houses in a good location, with good transport and in close proximity to schools.

  • Consider downmarket areas for emergency lets. Buy properties you’d never live in, which are in areas you’d never lie in and leave it to the council to lease.

  • Look for areas with new and improving transport links, such as train or tube stations.

  • Families will always want to live in areas with good schools, shopping, safe streets and nice houses.

  • Read the property section in newspapers and pay particular attention to special sections about specific areas. This will identify areas undergoing regeneration, which means it’s likely the local council and/or government is investing in the area.

  • Look for the so-called ‘brownfield’ potential. Many areas are ripe for redevelopment.

  • Don’t buy in new developments unless the property is a bit more special than the others. Look for large balconies, water views and the like.

  • Instead of buying in a new development, purchase a house or flat very near it, as there will be a knock-on benefit from the features of the new development. The same rule applies to buying off the plan.

  • Use the 10-minute rule. Find out what facilities and features (look for schools, shops, restaurants, supermarkets and public transport) are within a 10 minute walk of the property.

  • Identify the ‘socially cool’ factors that people want to have where they’re living. Visit supermarket websites to find out where they’re opening new stores. Also, if new chains, such as Starbucks or Wagamammas are opening in an area, then it’s been identified as a growth area.

  • Be very careful about the location and estate if you’re looking at ex-council properties.

  • Water is a huge attraction to people.

  • Talk to as many agents as possible.

  • The government often identifies areas for regeneration, which is a sign that prices in the area will soon increase. Check the neighbourhood renewal section of the ODPM website to find out where the government will be investing

Visit the ODPM website (opens in new window)

Tips from a successful property investor

Buy new. The developer will fix any problems during the first two years you own the property, which reduces your maintenance costs.

Manage your own properties instead of using agents.

If you’re taking it seriously, then you’ll need a good portfolio balance to spread your risk. Make sure you own a variety of different properties, including studio flats, townhouses and family homes.

Queuing overnight to buy into new developments can pay off. If you’re at the front of the line, you get the pick of the properties on offer. If you don’t want to wait yourself, pay someone to do it for you. Students are always looking for easy ways to earn money!

Next article in this section: The 10 best places to invest

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