Where is best to invest in residential property? Whether you are a buy-to-let investor or looking to buy a home, it’s worth investing your cash wisely to ensure the best return on investment.
Which is why whathouse.co.uk has highlighted the best places in England to buy property this year, to help point you in the right direction.
The five investment hotspots for 2007, according to whathouse.co.uk, are:
· Prime Central London
· Regional London
· Kent
· Liverpool
· Rochdale
Market overview
Overall house price inflation is generally expected to slow in 2007. Many residential market analysts are forecasting that average property prices will rise by 4% to 8% this year.
Residential property prices in London and the South East are expected to see the greatest level of capital growth. However, many shrewd investors are also looking to areas of regeneration as well as locations set to benefit from new transport links.
1. Prime Central London
There was a significant upturn in the residential property market in prime central London during 2006, fuelled by record-breaking city bonuses, foreign investment and a shortage of properties to satisfy demand. Consequently, average residential property prices in Prime Central London rose by almost 27% last year.*
This year, city bonuses should once again underpin much of London’s top-end residential market. Fashionable areas like Belgravia, Mayfair and Knightsbridge should see the fastest price growth.
2. Regional London 
Secondary locations should benefit from a ripple-down from the central London property boom, while there remains a shortage of properties coming on to the market. Average property prices across London are expected to rise by 8%.**
Hackney - Consider investing in areas that are receiving investment in infrastructure, particularly in the run-up to the Olympics. The Halifax says: “Parts of East London, such as Hackney, are likely to be one of the top house-price performers in 2007 as regeneration ahead of the 2012 Olympics attracts buyers.”
Cricklewood and Brent Cross - Initial plans for a new £4-billion town centre, linking Cricklewood to Brent Cross, are currently being drawn up. Plans reportedly include the construction of 7,500 new homes, an extension to Brent Cross Shopping Centre, offices, two schools and a train station. As many as 27,000 new jobs could be created as a result of the 20-year project.
King’s Cross – The area is a rapidly changing part of London, which will be regenerated over the next 20 years. King’s Cross will eventually become the new gateway to London once the Channel Tunnel Rail Link extension opens at St Pancras.
3. Kent
Residential properties in some parts of Kent are likely to record significant capital growth, due to infrastructure improvements, regeneration and a new high-speed rail service, which will significantly cut the journey time to central London.
The average house price in Kent is £223,973***, although it is possible to find decent flats and houses for much less than this.
Kent is part of the Thames Gateway Project, a massive regeneration programme that takes in Dartford, Gravesend, Sittingbourne and the Medway towns.
Also, Kent’s coastal towns (Margate, Ramsgate, Dover and Folkestone) are set to benefit from regeneration over the coming years, with new housing and improved transport links.
Kent’s transport facilities will significantly drive the local housing market. Ashford International already serves London and Europe, and the Channel Tunnel Rail Link will soon serve Ebbsfleet International station, due to open in November 2007.
Yolande Barnes of Savills research says: “Run-down Georgian townhouses in Gravesend would be ideal for investing in. The new train running from Ebbsfleet to St Pancras will take just 20 minutes, which will be a huge booster.
“Canterbury will become commutable and therefore a hugely desirable place to live in, and so will see big residential property price rises.”
4. Liverpool 
A number of major regeneration projects are currently taking place in Liverpool, as the city prepares to be crowned European Capital of Culture in 2008. The local economy is expected to benefit from further investment this year.
Average property prices in the city rose by 9.5% over the past year and currently stands at £126,260.***
The Anfield area is tipped for a potential property boom, which will continue beyond 2008, after Liverpool football club moved one step closer to securing funding for a new football stadium in Stanley Park and the surrounding area.
The proposed new stadium holds the key to plans for the regeneration of the local community. If the project goes ahead, it will mean new jobs, homes and investment in the area, which should help to boost local residential property prices.
5. Rochdale
Our decision to include Rochdale may raise a few eyebrows, but Rochdale town centre will soon undergo its biggest transformation for over 30 years after £100m was pledged to the regeneration of the area. The initial aim is to promote Rochdale's role as a sub-regional shopping centre, by creating new retail and office space.
Rochdale offers property at the cheaper end of the housing ladder. The average house price in Rochdale is currently £126,490, following a rise of 9.1% over the past year.***
The local housing market is receiving a comprehensive makeover. Around 3,500 new homes will be built in Rochdale and Oldham over the next decade, and a number of new residential properties will also be built along the River Roch.
Rochdale has also built a new £315-million mixed-use business park, which will reportedly create up to 7,000 new jobs.
However, the town centre regeneration project is not scheduled for completion until
2016.
Summary
Wherever you choose to buy property, always ensure that you undertake your own careful planning and due diligence prior to investing. Consider transport links, local amenities and any regeneration plans to try and ensure a maximum return on investment.
* According to the latest house price index from Knight Frank
** According to the latest Halifax House Price Index
*** According to latest Land Registry figures
By Marc Da-Silva