There’s a new investment hotspot list prepared by fast-growing UK property portal OnTheMarket.
It applies to the second quarter of this year but uses data from the first quarter for comparative purposes.
Bradford is the leading hotspot in the country for the second consecutive quarter, benefiting from the ripple effect as buyers priced out of Leeds look for neighbouring and more affordable alternatives. Meanwhile, Blackpool edged into 2nd place (5th in Q1), while Rochdale stormed into 3rd place (23rd in Q1).
Fourth-placed Plymouth, the only southern location in the top five, has also seen a considerable jump from 22nd place in Q1. Leicester is a new entrant into the top five, from 9th in Q1.
Overall, OTM says the north/south divide is holding firm with some of the most vibrant and cheapest locations in the north seeing the most heat in terms of housing market activity and only one southern location making it into the top 10.
The portal says that none of this comes as any surprise after 14 increases in base rate since December 2021, followed by seven meetings where the Bank has voted to maintain interest rates at 5.25 per cent. As well as higher borrowing costs, the post-pandemic shift towards working from home at least part of the week means buyers can consider areas further away from city centres, which tend to be less pricey.
Other notable big movers in the index include Wakefield, which has jumped from 30th to 9th place and Birmingham which has jumped from 23rd to 43rd.
Moving in the other direction, demand in Wigan has cooled significantly, dropping from second to 15th place in our rankings, while Liverpool has fallen from 11th place in Q1 to 30th. Worthing, one of the few southern locations to be considered a hotspot, fell from 20th to 53rd place. The ‘coolest’ hotspot on the list is Brighton.
In the London boroughs there has been less fluctuation than nationally and very little movement. Newham has entered the top five for the first time, moving from 10th in Q1 to 5th. Meanwhile, Hounslow dropped out of the top five, moving from 4th in Q2 to 9th in Q1 and several, including Lambeth, Southwark and Merton, all dropped four places.”
Commenting on Rochdale’s elevation to third place, Andrew Cardwell, managing director at Cardwells Estate Agents in the North West, says: “Rochdale’s jump of 20 spots to third place is impressive but not surprising as Rochdale, along with Greater Manchester towns such as Bolton and Bury have fared well recently. Earlier this year Rochdale was recognised as one of the most affordable places to buy a property, with an average house price of around £206,000 but as well as offering excellent value for money, it’s within easy reach of Manchester city centre and has beautiful countryside.
“Since the pandemic the working habits and requirements for many have evolved, and working from home has become much more prominent. This means people can look further away from the city centre, targeting areas which offer good value for money, beautiful countryside and the type of property that may not be available in a city centre, and also may not be affordable.”
