Forget Brixton and Hackney – Northern cities are the hottest up-and-coming areas for UK property investors, according to data released today on affordable homes.
The figures from consumer group Which? show the areas where property prices are surging that also have an average house price below £200,000.
The top spot for affordable homes in the UK is Liverpool’s city centre. Analysis of Land Registry data shows despite house prices increasing 41 per cent over the past year, the average home in the L1 postcode still costs just £120,000.
Although the Northern cities have the best locations for affordable homes, one London postcode made it into the top 10. The London borough of Bexley, DA18, boasts an average house price of £191,500 for the year to November 2015, with prices in the area increasing by 32 per cent on average.
Other areas that have seen strong price rises but remain affordable include the Welsh town of Conwy, LL27, and Bradford’s BD1 postcode – just east of the city’s university.
In Conwy, prices have risen by 37 per cent, but houses in the area cost an average £185,000. In Bradford’s BD1, the average house price is just £57,000 - but that's risen 36 per cent over the past year.
Manchester’s M12 postcode came fifth on the list. With an average house price of £98,000, the area is cheaper than Liverpool’s central district – but prices rises have not been as dramatic, rising 32 per cent.
David Blake, of Which? Mortgage Advisers, 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.”