England's top property investment locations

Wednesday, 10 January 2007 12:00 AM

England's top property investment locations for 2007 are London, Kent, Liverpool and Rochdale, new research shows.

Property website Whathouse.co.uk predicts these locations will provide property investors with strong house price growth in 2007 due to the regeneration plans for the areas.

"Although prices in London and the south-east are expected to experience the greatest level of capital growth, shrewd investors are looking to areas of regeneration and locations that are set to benefit from the implementation of new transport links," Whathouse explained.

The website predicts in prime central London locations the City bonuses being invested in property will push up prices, with fashionable areas such as Belgravia, Mayfair and Knightsbridge experiencing the fastest growing house prices in the country.

Whathouse forecasts a "ripple" effect from this, which is reflected in Halifax's prediction property prices across London will go up eight per cent in 2007.

Locations worth considering are Hackney, due to "investment in infrastructure, particularly in the run-up to the Olympics", and Cricklewood and Brent Cross, where a 20-year plan for a new £4 billion town centre linking the two areas are being drawn up.

Also tipped for 2007 is "rapidly changing" King's Cross, which will benefit from the new Eurostar terminal opening this year.

Outside of London, property in Kent is expected to "record significant capital growth" thanks to a new high-speed rail service, improvements to infrastructure and regeneration plans.

"Run-down Georgian townhouses in Gravesend would be ideal for investing in," explained Yolande Barnes of Savills Research.

She added: "Folkestone is set to be regenerated and will benefit hugely from a high-speed commuter link. Canterbury will not benefit quite so much time-wise, but will become commutable and therefore a hugely desirable place to live in, and so will see big residential property price rises."

Further north, Whathouse finds a number of major regeneration projects in Liverpool make it ripe for investment, ahead of its status as European Capital of Culture 2008.

"The local economy is expected to benefit from further investment this year. Average property prices in the city rose by 9.5 per cent over the past year and currently cost just over £126,000, according to the Land Registry," Whathouse said, tipping the Anfield area for a potential property boom due to plans for a new stadium for Liverpool football club.

High levels of regeneration investment in Rochdale and strong price growth in 2006 of 9.1 per cent made it one of the top property investment locations this year.

Whathouse explained: "Rochdale will appeal to investors looking for property at the cheaper end of the housing ladder. . . The local housing market is receiving a comprehensive makeover.

"In the region of 3,500 new homes will be built in Oldham and Rochdale over the next decade, under the government's housing market renewal programme. A number of new residential properties will also be built along the River Roche."

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