Scaffolding, traffic wardens and neighbourhood watch are key indicators of growth potential
Top indicators of property location growth potential revealed
Friday, 23 Feb 2007 00:01
The top ten indicators of high growth potential for the location of a property have been revealed by a new survey out today.
In a new poll of estate agents, research from ING Direct and the Future Foundation finds the top three factors for high growth potential are improving school results (79 per cent), streets with skips and scaffolding (70 per cent) and planning application notices (67 per cent).
However, the research also finds some much more surprising factors can indicate whether an area is on the up.
Property experts say investors should look out for whether a location's public transport is getting more crowded, if there are more traffic wardens around and if more homes have installed burglar alarms.
Investors should also take note of signs of neighbourhood watch schemes, ethnic foods being sold in local shops, graffiti being removed and the telephone directory getting thicker.
If at least six of these are in place ING Direct estimates house prices will outperform the national average by around 13 per cent over the next ten years, as well as offer improved standards of living and employment prospects for residents.
"Everyone wants to know if their area they live in or are planning to move to is 'on the up', in order to find out whether their home is a good investment," explained ING Direct's chief executive Lindsay Sinclair.
"Our report reveals a number of signposts that will help homeowners to find out whether an area is set for better things."
He added: "Traffic wardens and more crowded public transport are not things you would normally welcome, but it appears that such annoyances do come with a silver lining."
Top ten local growth potential indicators
Thicker telephone directories
More crowded public transport
Increases in parking restrictions and in the number of traffic wardens
Improvement in school results and fuller school waiting lists
Neighbourhood Watch schemes
Increasing numbers of burglar alarms
More skips and scaffolding
Disappearing graffiti
More planning application notices
Ethnic cuisine in local shops