Which? Mortgage Advisers (WMA) have conducted an analysis of Land Registry data to identify the best places in the UK to purchase a property according to a perfect storm of cheap cost with impressive potential. They looked at places where you could buy a property for less than the national average of £200,000, but which also had the potential to see huge price growth in the near future.
After analysing the data from around the country, WMA identified Liverpool as the ideal location where properties are currently going for under the national average while still showing good signs of upward mobility.
Liverpool’s Centre Reveals a Perfect Storm
It is the central district of Liverpool featuring the L1 postcode that appears to have the best value/potential combination at the moment, with the average house price hitting £120,000 towards the end of last year. While still way below the national average, that price average is still a massive increase on the previous year where the average cost was as low as £85,000 up to November, 2014. Over the year up to November, 2015, the average price growth has risen by just over 41%.
While Liverpool was identified as having the best current price and potential price combination, two other areas were also featured high up the list. The LL27 district in Conwy North Wales was notable as the second best area to find affordable homes, after seeing an increase of 37% in house price growth. The BD1 district of Bradford was placed third with a price rise of 36%. Both areas currently have affordable homes going for significantly less than the national average, with properties in Conwy North Wales going for £185,000, and Bradford much less expensive at £57,000.
Up and Coming Areas Make Great Alternatives
Which? Mortgage Advisers’ David Blake said, “For a first-time-buyer or a buy-to-let investor, these up and coming areas can provide an affordable alternative to buying in an already established area. You could see your property grow in value quickly, but it’s important to remember that property markets can change and there is never a cast iron guarantee that values will continue to rise.”
There are a number of other factors which help give an affordable area a lot of potential for growth, such as being situated near a successful town or if they are seeing an influx of modern shops, fashionable restaurants and trendy nightlife. Even the frequent appearance of skips and scaffolding can help give an area the appearance of being in the process of being improved.
