The property hotspots of 2016

We all know somebody who got into the right place at the right time and has seen the value of their property rocket as a result.

Anybody buying in East London a few years ago, for example, has seen their dingy dump turn into a des res.

But there's more to this than luck; and estate agents are generally very aware indeed of where the next property hotspots are likely to emerge. We look at their predictions for 2016.

Across the country as a whole, experts are predicting house prices to rise by around four or five percent over the coming year. London and the south continue to perform well, with property in the east of England and the Midlands expected to put on a lot of value too.

But within each one of these areas there can be huge variation between one town or district and another.

According to online estate agent HouseSimple, central Manchester will be one of the most lucrative spots to buy in 2016. The average home is currently just £155,000. But demand is expected to carry on increasing, thanks to the new BBC Media City and a huge expansion to the MetroLink tram system.

The Northern Quarter is considered to be the city's hippest, most creative quarter, so could be set of the biggest price rises.

Meanwhile, Rotherham may not have the cachet of Mayfair, but its property market could well be a better performer. It's the cheapest of HouseSimple's hotspots, with terraced houses costing just £84,580 on average.

But the former mining town's had half a billion pounds of investment in recent years, and a new railway station will make it much more commutable.

Student areas often go up in value, and HouseSimple believes that the Harborne area of Birmingham is ripe for a spot of gentrification. It, too, has had the benefit of some serious investment, and could eventually benefit from the HS2 high-speed rail link.

Meanwhile, Leicester, which has a current average property price of £164,000, is being tipped as a good investment, thanks to improving transport links and leisure facilities.

And Hythe, in Kent - where the average property price is £287,077 - is also expected to out-perform the area as a whole, thanks to its excellent transport links to Europe.

Other good spots, says HouseSimple, include Norwich, Hove, Ipswich, Ilkley and Woking.
%VIRTUAL-ArticleSidebar-property-guide%
Of course, if you work in London, this advice won't be much use. But there are plenty of hotspots in the capital too, as long as you know where to look.

Agent Winkworth tips Battersea as an obvious area for improvement, thanks largely to the development of Battersea Power Station. Popular Clapham Common's nearby, and two tube stations are on the way. The Lavender Hill and St John's Hill areas are becoming particularly popular with families, with buzzing high streets and quiet residential roads.

Meanwhile, Victoria, says Winkworth, is showing signs of catching up with its smarter neighbours in SW1. It has, obviously, superb transport links and plenty of employment, and money has been poured into the area in recent years.

Property values in Clapham rose by an astonishing 37% between the summers of 2013 and 2014, and have carried on rising steadily since; Winkworth reckons there's more growth to come. It's particularly popular, says Winkworth, with wealthy young buyers.

Also south of the river, Kennington hasn't exactly been the most glamorous spot, despite its lovely Georgian properties. But as work on the Northern Line extension from Kennington to Battersea continues, buyers are realising its advantages.

Finally, Pimlico, says Winkworth, is set to benefit from much the same advantages as Victoria: that it's a lower-cost alternative to swankier areas nearby, and on the doorstep of Westminster.

So what makes for an up-and-coming area?

It's always a good idea to look in areas that are just outside currently popular areas, as well as areas that are just another couple of tube stops or bus stops down the line.

It goes without saying that areas set to get new transport links, such as those along the new Crossrail route in London, are also likely to do well.

But all agents have their favourite secret signs of an area that. Most well-known is probably the presence of skips in the street, a sign that ambitious owner-occupiers are improving their homes.

It's also a good idea to look at the make-up of the local high street. "The presence of niche food chains and suppliers suggest demand in the area from people with disposable income," says HouseSimple.

Big chains such as Starbucks, on the other hand, imply that the area's already reached its growth potential.

And take note of the supermarkets: when Waitrose and M&S start to displace Tesco and Morrisons, you know that an area's on the up.