Best Regeneration Areas for Property Investment
Choosing the perfect place to invest in property is vital. It can be the deciding factor between a successful investment and a loss. While all budding investors would love to be able to predict the future and see the best places in the UK to invest in property, it’s not the case. The next best thing you can do is research.
You’ll want to identify past performance and ongoing projects, particularly the locations that are pushing regeneration schemes. Regeneration is often a show of faith in a region and can be a great indicator of where a good investment could flourish. As cities begin to build in up-and-coming areas, it’s usually the place where you’ll want to begin looking for an investment.
We’ve put together a list of some of the best regeneration areas for property investment in the UK, taking into account both completed and upcoming projects.
A Commuter Town that is undeniably well-connected. Slough is home to the headquarters of business heavyweights such as Ferrari, O2 and Unilever. In terms of regeneration, it’s currently enjoying substantial investment via the £450 million ‘Heart of Slough’ programme which is aiming to create 5,000 new jobs by 2022. This will be achieved by developing further office, residential and retail space, improving local infrastructure and amenities.
Slough will also enjoy the connectivity of the £14.8 billion Crossrail route, offering unprecedented access into the capital and creating direct links to the exceptional employment opportunities that are available throughout the South East. Crossrail is set to reduce travel times, increase passenger capacity and has already had a huge impact on Slough property prices, with the properties near planned Crossrail stations increasing by 60%.
Bracknell is undergoing a large-scale regeneration project as part of the Bracknell Vision project, £770 million worth of investment running until 2032 that is redeveloping residential, commercial, retail and leisure spaces. This will promote true urban living and add vibrancy to the area with The Lexicon at its heart, a £240 million development that has created 1 million sq.ft of high-end retail space boasting key names such as Fenwick, Waitrose, L’Occitane and Joules.
This rapid expansion has helped boost the population to over 120,000, a number set to grow to nearly 139,000 by 2036 and attracted global technology brands including Honda, Dell, HP and Fujitsu, cementing Bracknell’s status as a cornerstone of the UK’s Silicon Valley.
This London borough is enjoying a resurgence in reputation on top of inward investment. From the introduction of Boxpark to the arrival of a Westfield Shopping Centre, Croydon has a lot to look forward to. It’s also home to over 1,000 new startups, providing easy access to the talent and lifestyle of London without breaking the bank – prices in Croydon still sit around £180,000 below the average of the capital.
The sheer scale of development in the area is skyrocketing and property prices rose by 20% in 2016, one of the highest increases in the UK.
Birmingham Property continues to go from strength to strength, with multiple large regeneration projects changing the landscape, the impending Commonwealth Games in 2022 and the arrival of HS2 providing unrivalled access to the capital. With a revamped New Street Station recently completed and the addition of Grand Central, Birmingham has begun a period of change that is set to continue with the development of Paradise Circus, Arena Central and Birmingham Smithfield.
The Birmingham Smithfield Regeneration is one of the largest projects in Birmingham and represents a monumental effort to create an entirely unique destination. The £1.5 billion plan will reimagine and revitalise Digbeth and the neighbouring Southside, Birmingham’s most contemporary district. Over 20 years, Birmingham Smithfield will add £470 million GVA to the local economy and create nearly 3,000 new jobs.
This huge investment effort hasn’t gone unnoticed within the business community either. Birmingham has attracted huge names including HSBC, PwC, HMRC and Deutsche Bank thanks to the regeneration of its city core, further strengthening the largest Business, Professional and Financial hub outside of London that currently comprises 100,000 professional workers.
A key commuter town for London, Luton is undergoing an ambitious £1.5 billion investment plan that is set to provide 18,500 jobs. Luton regeneration is currently targeting the redevelopment of Marsh Farm as well as continued investment into London Luton Airport, with future plans for the Luton Cultural Quarter and Direct Air Rail Transport.
Named as one of the best places to buy-to-let investment in the UK last year, Luton boasts excellent transport links and a diverse community that is attractive to international buyers.
Manchester has experienced a huge amount of regeneration over the last decade, drawing the attention of global business and overseas investors, with Germany naming it ‘the most important city outside of London for investment’.
With Manchester acting as the anchor for the Northern Powerhouse project, it’s no surprise that investors are looking to the city for opportunities. The city has also been featured in the LendInvest Buy-to-Let Index Report, where it ranked in the top 10 buy-to-let postcodes.
As investors and buyers are being priced out of London, Basingstoke has become one of the most attractive opportunities along the Commuter Belt.
Boasting the highest concentration of digital businesses in a region within the entire UK and with several large regeneration projects on the horizon, Basingstoke is looking to put itself on the map. The main Basingstoke regeneration projects are focused on the Winklebury, Buckskin and South Ham and Norden wards, developing areas in conjunction with the local community.
Wood Green has emerged as a hotspot thanks to Crossrail, offering excellent connectivity in a region that remains affordable compared to other boroughs. With a £3.5 billion investment to regenerate the town centre and the development of 25 sites to facilitate more retail units, Wood Green’s stock is expected to rise.
Liverpool is still undergoing a number of regeneration schemes with many more on the horizon. Liverpool One was one of the largest schemes, closely followed by the regeneration of Lime Street, Liverpool Waters and the Anfield Project.
From residential housing projects to the regeneration of the Albert Docks area, the former European capital of culture has provided some of the UK’s strong buy-to-let investment yields.