Regeneration areas are competing strongly with university towns and holiday destinations for the attention of buy-to-let investors, a survey commissioned by the Property Investor Show reveals.
The research claims 41% of buy-to-let investors are looking to invest in a regeneration area, and Gillingham has proved to be a particularly good regeneration growth area, with property prices growing almost 20% between 2005 and 2006. The area forms part of the Thames Gateway and Medway developments and has received almost £97m of government investment.
Other regeneration areas with rapidly growing house prices include Peterborough, Grimsby and Middlesbrough. Government projects in these towns include building new offices to create more jobs, building retail parks and improving transport links.
Nick Atkinson, investment manager at Castle Residential Services, comments: "Regeneration areas have significant benefits for those buyers with affordability constraints. Investing in up and coming areas means significantly lower purchase prices and the knowledge that ongoing regeneration will help their investment to grow.”
Tina Dedman, sales director at George Wimpey East London, adds: “We have a number of schemes in the Thames Gateway area, including the Images and Invito developments in Gants Hill, many of which have sold off plan. At our Altius scheme in Clapton we have seen the same levels of interest. Close proximity to the city and good transport links being key factors for investors.”
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