The Best Places For House Price Gains In 2008
Everywhere you look there appears to be bad news for the housing market for 2008, with forecasts for market stagnation seemingly the best news to be found.
However, experts have come up with ten locations that may buck the likely miserable trend for the year. As with 2007, the research by Halifax suggests that most locations expected to fare best are in the South East and Scotland, but Liverpool and parts of Wales get a mention too.
The Halifax said: "Parts of East London, such as Hackney, are likely to be one of the top house price performers in 2008 as regeneration ahead of the 2012 Olympics attracts buyers. House prices are also likely to be boosted in areas close to the planned Crossrail line in London.
"Kent generally is likely to outperform the South East average, partly due to infrastructure improvements. Seaside towns in the county are also relatively affordable, which will tend to stimulate demand from the growing number of people looking to live near the coast.
"Chatham and the other Medway towns in Kent are likely to record significant house price increases as demand is boosted by the planned opening of high-speed commuter services from central London to north and east Kent in 2009.
"Dartford and the surrounding area will also see a boost to property prices as a result of the recent opening to the Ebbsfleet International railway station.
"House prices in Liverpool are predicted to outperform most other areas as demand for property increases as a result of substantial investment in the city in the run-up to Liverpool becoming European Capital of Culture in 2008."
However, the top four prices risers are forecast to be in Scotland: Lochgelly, Paisley, Greenock and Aberdeen. Halifax commented: "Lochgelly, Paisley and Greenock are towns with a combination of lower than average house prices and good transport links into Glasgow or Edinburgh. Aberdeenshire is likely to see continued property price growth next year, given the strength of the local economy."
Wales will also have its own hotpots. "Monmouthshire is expected to record above-average price rises as demand is boosted by an increase in second home-buyers who are finding it increasingly difficult to find affordable property in the Cotswolds." Newport and Pontypool are expected to show 'relatively high' house price growth.
In 2007, the Halifax found that combinations of net population increases, often driven by immigration, and rising employment levels, were the best to boost house prices. The South East and Scotland saw average rises of 14%.
Top of the pile was east coast Scotland's Montrose, with an average price increase of 39%. Winchester in Hampshire was close behind with a 38% rise.
Halifax says that average house prices have risen from an average of £70,000 in 1997 to £195,000 in late 2007.
Most forecasts are now for a sharp correction in 2008, and much wealth gained in property will be lost in this year and the next. The impact of the credit crunch and a fall in the number of property sales will see house price inflation come down to the negative in many areas.
If you're looking for profits, it's all about location once again.
Whether you are a first time buyer or looking for a better mortgage, get your Free Mortgage Quote and compare the Whole of Market for the best deals.
Published on January 3, 2008
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