In the latest installment of our mini series on finding potential property hotspots, we’re turning our thoughts towards identifying areas where there are major employers located.
In areas of towns and cities in the UK where there are major employers located, such as factories, hospitals, government organisations or manufacturers, there is often a need for good quality accommodation within easy reach. In the case of some types of employment, such as hospitals, where there are lots of employees and often new people coming to work at the hospital, rental properties in particular can become in demand.
As well as looking for existing large companies based in an area, it’s also worth keeping an eye out for details of new companies that are opening up or existing firms that are moving to a new location.
For example, when the Met Office moved its headquarters from Bracknell in Berkshire, to Exeter in Devon in 2004, there was a sudden increased demand for accommodation in the city. Landlords with properties in the vicinity of the Met Office, and in other areas close by, saw their rental demands soaring. Although some of this demand may well have been due to workers wanting to get to know an area and rent before they buy, there are others who are likely to have continued to rent.
The Met Office effect on Exeter was not an isolated case and major employers in other parts of the company have had similar effects on rental demand.
Finding areas where large companies are located, or are going to be based, isn’t a sure fire guarantee that you can land yourself a property hotspot, but like the other factors we’ve explored, it could be beneficial to include it in your list of possibilities when exploring where to purchase investment property.
Part 1: Improved transport links
Part 2: Regeneration schemes
Part 3: Universities
Part 4: Schools
Part 5: Major sporting events
Interesting article – thanks for sharing.