Areas of High Demand

A highly significant factor that can be drawn from the poll for would-be landlords is the issue of identifying areas of high demand - be it a macro situation such as London or a regeneration zone, or a micro one as in a specific borough or even a street or two within an area. Look out for signs of new offices or industry opening, for example, or an announcement of a major annual event scheduled to take place locally. Such news will often be a precursor to house price increases. The canny investor will get in early.

Regeneration zones to look out for include the Thames Gateway,  New East Manchester, The Potteries (Stoke-on-Trent) and Salford (including the BBC relocation) amongst a number of others.  

Invest in towns

Also today it is often not city centres that offer the best investment opportunities. This is due to so many new apartments having been developed in cities in recent years with the upshot that the investment market can be flooded.  As the Daily Telegraph recently suggested often towns represent better opportunities.

Talk direct to developers

Also be aware of new build housing developments planned or in construction. Often, on the first phase or even off-plan - literally buying from the architect's drawings although a show home may well be open to view - will save you money, as often will purchasing direct from a housebuilder or developer rather than via a property investment club (PIC), for example. Exercise caution with PICs as several have been closed down by Customs & Excise in recent years.

Additionally, negotiate with the developer on price, benefits and so on. If you are planning to buy more than one property a discount will usually be offered, though this can come in many guises for example free carpets, curtains, furniture packages, white goods etc. Also look out for guaranteed rental schemes, which offer a percentage of the purchase price for a specified period of time.