Property market hotspots for 2008

07-01-08, UpMyStreet ©

Toughening economic conditions during the closing months of 2007 have led many market experts to forecast a continuing property slowdown in 2008. But, according to Nationwide, blanket predictions "disguise movements in house prices throughout the UK".

Examining the housing market at a local level reveals more activity than the doom and gloom reports suggest. We've identified the hotspot areas in each region in Britain that we think are likely to buck the downward trend over the next 12 months.

1. London: Hackney and Tower Hamlets

The interest in East London is set to continue as '10 milestones' of the Olympic redevelopment project - including starting the construction of the Olympic village - are due to be in place by the close of the 2008 Beijing Olympics. Areas close to the site of the games have seen a 15% increase in house prices, and confidence in the future of this area has been bolstered by long-term plans for better transport links, facilities and new, affordable housing.

Increased property activity is also expected in the areas set to benefit from future transport links around the capital, including the East London line extension, and Crossrail, a £16 billion project linking East and West London.

2. South East: Kent

Halifax anticipates high buyer demand and rising prices in the county due to improved transport links with London and the continent. With the new international Eurostar station at Ebbsfleet opening in November 2007, commuters in Dartford and other surrounding areas now enjoy a 15-minute journey to London, and a two-hour trip to Paris.

Chatham and the other medway towns will be boosted by the opening of a high-speed commuter service in late 2009.

3. South West: Weymouth and Portland

It's not just East London feeling the Olympic effect. As the sailing and watersports venue for 2012, increased exposure for Weymouth and Portland has meant steady growth in the demand for property here. Construction work on the new marina should be completed by the end of the year.

4. East of England: Peterborough

While average prices in Cambridge have broken the £300,000 mark, buyers are being attracted to the more affordable prices of its lesser-known neighbour, Peterborough, where property sells for a more reasonable £170,000.

Work also begins on a £17.5m Government-backed growth plan for the city, that in the long-term will mean 25,000 more homes, 20,000 new jobs and 40,000 more people by 2021. Peterborough also aims to become nation's 'environment capital' with an eco-friendly approach to the project.

5. West Midlands: Coventry, Warwickshire

Lower than average property prices and regeneration will help to boost first-time buyer interest in Coventry in 2008. Work on the second phase of the Belgrade Plaza project is underway and due for completion in Spring 2009, which will redevelop and modernise the city centre.

The West Midlands had the most stable property market in 2007, according to Nationwide.

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