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

Like some of the other methods of locating and identifying property hotspots, the positive influence that major sporting events can have on a location are well documented. The South African property market has spent the last few years building up to 2010, and hosting the World Cup, as did Vancouver, in Canada, which has just held the Winter Olympics.

If a major international or national event, such as World Cup events, the Winter Olympics or Olympic Games are scheduled to take place at a particular location, one of the first things people begin to think about is accommodation.

Not only does an area need to have enough accommodation to comfortably house all the sportspeople, but also their entourage of coaches. Then there’s the small matter of having suitable accommodation for all the spectators that will want to come and see the event, and all the media that will be reporting on it. During any building work, for example construction of a stadium, then accommodation nearby may also be required for people involved in the building work.

Even though the London 2012 Olympics are still two years off, reports are suggesting that tourists are already booking up accommodation in the city and property owners are beginning to think about the prospect of letting their properties for the event.

Having property in the right area and being able to cater for the rental property needs for major sporting events can be lucrative in the short term, but isn’t necessarily simply a short-lived bonus. Often areas hosting major sporting events undergo regeneration and considerable improvements to infrastructure in the lead up to the event, which leaves the area in a good position after the event is over.

Keeping an eye out for details of major sporting events, especially the locations where accommodation will be needed or players will be housed, and seeing if a property purchase in the area may work for you can lead to a good deal. If you’ve already got a rental property in the right location, then don’t forget to take action and see if you can make your bricks and mortar work in your favour!

The impact of school catchment areas on demand for property, both rental and privately owned, has been well documented over the last few years. Even the downturn in the housing market didn’t have such an effect on places with popular school catchment areas.

Buying investment property in very sought after areas within school catchment areas will probably come at a price, as they are already established property hotspots. However, if you apply a wider view to it and look for properties in close proximity to good primary and secondary schools, or look for schools that are likely to be improved soon, then it’s still possible to find properties that could prove to be a good financial investment.

For example, schools that have failed Ofsted reports are often equipped soon after with a new head teacher, who is appointed the task of turning the school around and making huge improvements. Compared to properties in popular catchment areas, those in close proximity to rundown schools may be lower in price and could hold the key to a potential property hotspot.

Realistically, rundown schools can take a few years to be turned around, and for the league tables to improve, but you could be lucky and find yourself a property hotspot and do well with family renters wanting to live close to their school of choice

Of course, it’s important to choose the right type of property that will attract family renters too. Small flats are unlikely to be all that popular, but two and three bed family homes are. Many areas around good schools are also well equipped with local shops and leisure facilities, so when you’re investigating the area, do carefully check out the location as a whole.

Finding Property Hotspots Part 1 – Improved transport links

Finding Property Hotspots Part 2 – Regeneration schemes

Finding Property Hotspots Part 3 – Universities

As every property investor wants to make money on their investments, investing in somewhere that could help provide that all important profit is a crucial factor – especially when the initial investment needed may be quite low.

But if you’re new to the property investing world, or are looking to branch out with a few new investments, how do you go about finding those all important property hotspots?

Improved transport links

Good transport links are important for anyone commuting to work and can play a role in making a place a property hotspot. In most of the established commuter belts, property prices are likely to be high, especially in areas within major cities, such as London.

However, when new transport links are launched or improved, it opens up the possibility for new property hotspots to emerge too. For example, in December 2009 the high-speed Javelin train service from Ashford to London launched, knocking significant time off many journeys into London. 

Whilst some areas of Kent, like Tunbridge Wells and Sevenoaks, are already quite pricey, there are still other areas where prices have the chance to grow and long-term rental properties could be in demand. Towns and villages in East Kent, for example, might be worth exploring.

The Kent high speed train link is just one example of how improved transport can boost an area, but the same scenario, involving different types of transport, can often have a similar effect. So keep an eye out for new developments involving motorways, link roads, trains, plane routes or airport runways.

The one thing to remember with finding property hotspots is you have to act early. If you hang about to see how the property market will fare, you could well miss the boat or the chance to snap up a bargain early, before the market rises.