Want to know the secrets to bagging a property bargain in an area about to boom? Property expert Phil Spencer reveals the tell-tale signs to look out for when trying to find the next Hackney or Margate.

Even in a shaky housing market, some areas defy the odds, with prices soaring over time. Take Hackney in east London – it’s seen an incredible 802% increase since 1995! That means a house that cost just £66,024 back then would now set you back a whopping £595,756!

Finding an area like that is like winning the property lottery. So how do you spot the next big thing? Writing in The Telegraph, Phil says it’s all about looking for these key signs…

Transport, Transport, Transport!

Phil’s golden rule? “My go-to indicator of an up-and-coming area is one which has newly benefited from, or is about to benefit from, extra transport links.”

He points to Margate and the east coast of Kent as prime examples. Improved train lines to London saw prices explode by a massive 613% over the past 30 years. During the pandemic, when everyone wanted to escape the city, prices in Thanet (which includes Margate) shot up a staggering 15.8% in just one year!

But it’s not just about existing transport links, it’s about spotting where they’re going to pop up NEXT. Phil explains: “One great longer-term strategy is to look for gaps in transport links that are likely to be filled in future. You are not going to get a new station overnight, but it will pay dividends if you are proven correct.”

His hot tip? South-east London, between Elephant and Castle and Peckham. It’s crying out for a Tube station, and the planned Bakerloo line extension (due in the 2030s) could see prices skyrocket in areas like Old Kent Road, New Cross, and Lewisham.

Don’t Ignore the Power of…

• Beautiful Buildings: A bit of architectural charm goes a long way! Phil highlights how areas like Margate, Ramsgate, and Broadstairs all boast gorgeous Victorian and Georgian houses. Once those transport links improved, buyers went crazy for these properties!
• First-Time Buyer Hotspots: Keep an eye on where those with smaller budgets are moving. Phil says: “First-time buyers are savvier at finding up-and-coming locations, such as those on the edge of established areas.” They often spot a bargain before anyone else!
• The Artist Effect: Creative types are often drawn to areas with character and potential. Phil points out: “You often find artists and creatives are fantastic at seeking out value, because they’re less constrained about things like schools and commutes.”
• Holiday Home Havens: Areas with strong tourist appeal are unlikely to lose their shine. The demand for second homes and holiday lets keeps the market buoyant.

The New Priorities Shaping the Market

Phil believes the pandemic caused a shift in what people want from their homes. Space, greenery, and home-working options are now top of the list. He says: “We have also seen buyers prepared to compromise on other things in order to get more space and working from home options.”

This explains why places like Hastings (with a whopping 641% price growth since 1995!) have become so sought-after.

The Bottom Line: Don’t Forget What Really Matters

While finding the next property goldmine is exciting, Phil urges buyers not to get too caught up in the numbers: “The more important thing is to find a home that is right for you… Earning an extra £20,000 on the sale won’t mean much if it wasn’t a house you loved.”

So, there you have it – Phil’s expert insights into where the property market might be heading next. Happy house hunting!