Top 5 Emerging Hotspots to Invest in UK Property 2020
The ever-popular London market has levelled out and growth has stagnated, meaning investors are looking elsewhere for consistent returns. As the spotlight falls on emerging markets, where affordability can lead to potentially higher yields, what are the top five emerging places to invest in UK property? We’ve looked at the data and here are the UK’s best new markets for investment in 2020.
Top 5 Emerging Towns For UK Property Investment
As the UK market grows at an unprecedented rate, the Buy-to-Let sector is attracting incredible demand, worth over £1 trillion and contributing to the undersupply occurring around the country. We’ve identified some of the up-and-coming investment hotspots in the UK rental market that are forecasting future growth through new development and regeneration.
Property Price Growth since 2014: 20.77%
Bracknell is one of the key markets in the South East and demonstrating all of the ‘signposts’ of a prime investment location. From the global brands it’s attracting to the large-scale regeneration project sweeping through the town, demand is at an all-time high for this UK tech hub.
In the current market, Bracknell property sits at an average of around £362,000. This makes it much more affordable than its surroundings, despite the area seeing price rises of 249% since 1999. When compared to nearby locations such as London (£729,100), Woking (£483,000) and Guildford (£534,993), it’s clear that Bracknell is a much more accessible market that still offers direct connectivity to key destinations including the capital and Heathrow.
A key driver in demand for this new garden town is the 2032 Bracknell Town Centre Vision. A regeneration project worth nearly £770 million, it’s redeveloping key transport and infrastructure while creating iconic new residential and commercial space to meet demand. The four-phase plan is set to blend this quality development pipeline with the exceptional career opportunities and world-class green spaces that Bracknell is already home to.
You may be interested in: The Grand Exchange Development, Bracknell
Property Price Growth since 2014: 18.14%
While Slough is an established commuter destination, it’s reputation as an investment hotspot is only just starting to spread. With an affordable property market compared to its surroundings and incredible transport links around the South-East, Slough is also building an enviable commercial landscape that is bolstered by over £1 billion in investment.
As political uncertainty continues to impact the capital, Slough seems unaffected. With JLL still forecasting price rises of 35% by 2021, around 87,000 jobs are contributing to a £9 billion economy and setting the foundations for incredible demand. 48,000 commuters to London proves there’s plenty of appetite for affordable living outside of the capital – in fact, 46% of homes in Slough are let to people leaving London.
Regeneration in Slough is being led by the Slough Urban Renewal (SUR) project, a plan that is funnelling £1 billion into the town and pioneering game-changing developments. Examples of this regeneration include The Curve and The Centre, two cultural touchpoints for the town that are directly meeting tenant demands.
You may be interested in: New Eton House Apartments, Slough
Property Price Growth since 2014: 20.77%
The UK’s first new town, Stevenage is strategically located to access London, the rest of the UK and Europe, delivering incredible accessibility through world-class infrastructure. With some of the most forward-thinking companies in the UK calling Stevenage home (including Fujitsu and DuPont), it fosters an incredibly entrepreneurial workforce and demand that continues to grow.
It’s this demand that is helping drive the housing and commercial growth opportunities that will deliver 7,600 new homes by 2031, meeting the rising need for residential accommodation. With a population of around 84,000, a number that has grown by around 6% in the last 10 years, Stevenage is popular with professionals and families that are relocating from the capital.
The impact that Stevenage has had on the business and tech sectors in the UK can be seen directly through the expansion of The Business & Technology Centre in 2015. Originally set in a 15,000sq.ft facility, Stevenage Borough Council saw fit to extend the space by 27,000sq.ft, creating a hub of innovation and quality business space at the heart of the community. Costing around £7 million, it promotes innovation while supporting small and medium-sized businesses.
Property Price Growth since 2014: 23.87%
Out of each location on this list, Northampton has experienced some of the highest (and fastest) price growth. With property prices increasing by 5.3% over the last 12 months – outperforming the national average by a large margin – Northampton is a truly emerging market despite it being earlier in the property cycle.
As one of 100 towns and cities that could receive a £25 million boost from both the ‘Future High Streets’ fund and the Towns Fund, Northampton could potentially receive £50 million from the government specifically earmarked for regeneration. This would be an incredible boost for ambitious plans that include an Indoor Food Market and the regeneration of Greyfriars – the former site of the bus station.
With 18.5% of Northampton’s property market living in private rented accommodation, a figure set to rise by 2025 as more people opt to rent over purchasing outright, it’s expected that Northampton will continue to rise as a key investment destination.
Property Price Growth since 2014: 21.12%
According to the Hometrack report, Milton Keynes is one of the top ten locations where prices are rising the fastest and it shows no signs of slowing down in 2020. As development starts on one of the most significant projects in a decade, which includes a boutique cinema, dining area, public spaces and new retail locations, central Milton Keynes is the first step in a wave of regeneration.
Commercially, Milton Keynes is mostly recognised for its IT and innovation performance. With the third highest number of business start-ups per 10,000 of the UK population and strong economic performance, Milton Keynes is a key member of the Fast Growth Cities group that has resulted in nearly 20% of its workforce joining the knowledge sector. It’s these advancements that are contributing to Milton Keynes rapid rise – the city is expected to double its population to 500,000 by 2050.