How should I interpret the data?
Well the overall aim when interpreting any form of data or information is to be analytical and to adopt a substantive approach, rather than to indoctrinate the literal meaning ensuring any such information is applied in context.
Let’s first consider as to what we constitute to be certain;
- The economy in the UK will improve
- The UK economy is too big to fail, valued at 6.8 Trillion
- There is a Demand for housing and there will always continue to be a demand, in the short, medium and long term. In fact the current supply cannot meet demand, with a shortage of housing approximately standing at 240,000 homes a year.
- The population is a rising one and yet an ageing one.
- As the population increases there will be regeneration, employment and certain key factors which will help develop and rejuvenate certain areas.
- Property prices are at an all-time low.
- Rental Demand is high and rents are forecasted to rise as lending in the short term is still restrictive and larger deposits are required by purchasers.
- Funding over a period of time will become more accessible, as new lenders and more mortgage products are becoming increasingly available since 2010.
How do we interpret this data to our advantage, it’s all about geo targeting your investment strategy?
Investors purchasing in mature, desirable areas, will see little capital appreciation over the short term. The risk is slightly lower but this is normally balanced with lower yields and return on investment. In contrast, there are areas that are in close proximity to mature areas, which have major regeneration plans and strategy; and may be constituted as over spill areas all of which are potential HOTSPOTS. Manchester is the 3rd largest city in the UK, and surrounding areas such as Didsbury , Chorlton, Fallowfield, Levenshulme and Longsight have all become desirable imnvestment areas , as the demand for housing has increased. Some of the major causes of such rise has been because of an expanding and highly successful university, a growing working population which has been attracted by job prospects and successful enterprise, excellent transport links, local communities expanding, regeneration and development, but to name some of the reasons for growth.
Now in each of these sub areas, certain parts have risen in value more than others. The key relies on, seeing which areas are more likely to increase in value than others and which will attract a higher level of rental demand.
It is also important to ascertain, what are the key market drivers in the area, for the short term, medium and long term. Also consider;
- Transport links and infrastructure,
- Regeneration programs
- Age range
- Type of housing
- Schooling and Further Education
- Places of employment
- Café culture
- Unitary Development Plan and strategy
- Housing supply
- Crime statistics
- Local councilors
- Leisure complexes
- Heritage
- Cathedrals
- Theatres
- Art Galleries
- Shopping centers
- Places of worship
- Community centers
- Socio economic break down of local population
- Quality of local housing
- Market price and rental market trends over a period of time
This is a general list we have compiled, by no means is it an exhaustive one, our diligence process are extremely vigorous.
