What makes a property hotspot?

12 August 2011

We’re all on the lookout for the next property hotspots, areas where house prices will inevitably rise due to regeneration or improvements. With the recession still affecting many, what are the main factors that cause these revitalised property hotspots?

The Olympics

It’s hard to look further than the greatest, and largest, sporting event in the world when we look for reasons for property prices to rise. The Olympics and all its fanfare will descend on London next year and a full scale regeneration scheme is well underway in East London. The Olympic Park Legacy Company has pledged to build 11,000 homes in the area, meaning that this property market is likely to be in good shape for a few more years to come.



When looking for our next home, one of the first things to take into consideration is the surrounding roads, and how easy it is to get in and out. Although it may sound like a dull reason for the reasons behind property hotspots, it plays a major part in house price increases. A £371million tunnel in Hindhead, on the A3, opened in July and has helped to solve a notorious traffic problem in Hampshire and West Sussex. This improved ease of travel led to predictions of a 5% rise in house prices in these areas, which should continue over the next few years.



Like the roads, good rail links can significantly boost the housing market and cause stronger house prices. This is particularly true of the commuter belt around London, and several towns and villages within an hour or two of the capital have managed to survive the worst of the housing market crash, with house prices and sales showing resilience. New rail improvements in the Cotswolds has seen places like Kemble and Stroud become commutable to London, helping house prices in these areas to become ‘hotter’.

A route to Europe

Domestic transport links may be the main priority for many home movers, but it is hard to dismiss the effect that easy access to international travel has on house prices. The property markets around the major airports, such as Heathrow and Manchester, have remained strong over the past few years. Similarly, towns near the Eurostar stations have increased in popularity, and this demand has driven house prices higher.

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