Up-and-coming property index

Due diligence is key when making big purchases like buying a home. If you are thinking of buying your first home, make sure you compare first time buyer mortgages to get the best deal for you.

Predicting which areas will be the best to invest in can be challenging. However, we can determine which areas have greater potential by considering a variety of factors that support real estate market growth. Your first time home can act as a significant investment, as you could see an increase in its value if you buy in an up and coming area.

This analysis investigates the most important factors to consider when looking for the best up-and-coming areas to buy a property. It includes average property price growth, business growth, the volume of young people migrating to the area, transport links and regeneration, make-up of employment, income, and poverty rates.

Read on to explore the biggest up-and-coming property areas in the UK and the US.

The biggest up-and-coming property areas in Great Britain

1. East Cambridgeshire - 8.14/10

Annual house price change: 16.5% Inflow of 25-34-year-olds: 0.4% Train stations per 100,000 people: 6.7 Net change in businesses per 10,000 people: -8.3

Regeneration Annual income change: 4.5% Poverty rate change: -0.5% Annual employment change: 1.5%

East Cambridgeshire ranks as the most up-and-coming area for properties in Great Britain. The area has seen a massive property price growth of 16.5% over the last 12 months. This is coupled with reasonable 5-year regeneration figures, where income has increased by 4.5%, employment by 1.5%, and poverty decreased by 0.5%.

Located just North East of London, East Cambridgeshire is a largely rural district. Recently, East Cambridgeshire District Council has transferred its local land charges service to the national digital register. This allows users to access online information instantly, meaning buying decisions can be made earlier and the property buying process is much simpler.

2. Eden - 7.99/10

Annual house price change: 17.9% Inflow of 25-34-year-olds: 0.2% Train stations per 100,000 people: 11.2 Net change in businesses per 10,000 people: -9.3

Regeneration Annual income change: 5.9% Poverty rate change: -0.8% Annual employment change: 0.8%

Eden is a local government district in Cumbria, North West England. It has seen a huge 17.9% property price growth over the last year. Despite recording a negative change in business in the area, annual income has risen a solid 5.9% over the last five years. Poverty has also decreased by 0.8% over the same period.

Named after the River Eden, which flows through the district, Eden is the second-best place in Great Britain to consider purchasing your first home this year. The average property price has risen 17.9% over the last year and recent figures suggest this will continue. The average property price in Eden during October 2022 was £271,596, a steady 0.5% rise on September’s prices.

3. Bolsover - 7.80/10

Annual house price change: 14.9% Inflow of 25-34-year-olds: 0.2% Train stations per 100,000 people: 4.9 Net change in businesses per 10,000 people: 182.6

Regeneration Annual income change: 2.8% Poverty rate change: -8.7% Annual employment change: 1.4%

Bolsover ranks as the third-most up and coming area for first time buyers. It has recorded the second-highest increase in business of all local authorities in Great Britain, with an increase of 182.6 per 10,000 people. Property prices have risen a respectable 14.9% over the last year and the poverty rate has dropped a massive 8.7%. Income, however, has increased at a slower rate of 2.8% over the last five years and total employment by just 1.4%.

The market town of Bolsover sits on the northeast of the county of Derbyshire. Bolsover town centre is well-populated with local businesses, from traditional butchers to popular takeaways. Recently, a new multi-million-pound investment has secured approval for a new distribution centre with eight warehouses. In addition to growing business, 243 new homes have been approved for construction in the area.

4. East Devon - 7.78/10

Annual house price change: 17.3% Inflow of 25-34-year-olds: 0.3% Train stations per 100,000 people: 6.1 Net change in businesses per 10,000 people: -20.6

Regeneration Annual income change: 5.1% Poverty rate change: -0.1% Annual employment change: 2.7%

East Devon, located in the South West, ranks as the fourth most up-and-coming area to buy a home in the UK. House prices have increased by a respectable 17.3% with a reasonable increase in young people moving to the area (0.3%). While income has also risen by 5.1%, overall the percentage of businesses in East Devon has reduced by 20.6 per 10,000 people over the last five years.

East Devon is best known as a coastal town whose beach forms part of a designated World Heritage Site. IThe area also spans two AONB (Area of Outstanding Natural Beauty), which are similar to national parks. This means new developments are restricted to maintain the natural beauty of the district.

5. Argyll and Bute - 7.75/10

Annual house price change: 25% Inflow of 25-34-year-olds: 0.2% Train stations per 100,000 people: 16.4 Net change in businesses per 10,000 people: -2.9

Regeneration Annual income change: 3.9% Poverty rate change: -3.6% Annual employment change: 0%

Argyll and Bute has seen the largest property price growth of any authority on this list at a whopping 25% over the last 12 months. Argyll and Bute also has great transport links with 16.4 train stations per 100,000 people. Despite this, the area is in the minority of those authorities where employment has not increased over the last five years.

Argyll and Bute is located in the West of Scotland and forms the second-largest administrative area in Scotland. The average property price in Argyll and Bute as of November 30th was £206,735, following exceptional growth of 25% from last year when the average price was £165,416. On average, house prices rose by around £3,400 every month in Argyll and Bute.

The biggest up-and-coming property areas in the USA

1. Montana - 7.80/10

Annual house price change: 17.8% Inflow of 25-34-year-olds: 2.8% Travel time to work: 18.4 minutes Change in business applications: 12.8%

Regeneration Annual income change: 7.7% Annual poverty rate change: -0.4% Annual unemployment change: -0.2%

Montana ranks as the USA’s most up-and-coming state for first time buyers. Situated in the North West US, Montana reports a solid 17.8% increase in property prices as well as some solid indicators of regeneration. Unemployment has decreased by 0.2%, poverty by 0.4%, and income has increased by a massive 7.7%.

Towards the end of November, Montana was granted a hefty $31 million in competitive federal tax credits to encourage the construction of affordable housing projects across the state. These credits aim to reduce the cost of construction materials and pass savings on to renters. Montana’s commerce department states that the credits will help fund the construction and maintenance of around 280 homes every year.

2. Tennessee - 7.29/10

Annual house price change: 20.8% Inflow of 25-34-year-olds: 3.1% Travel time to work: 25.4 minutes Change in business applications: 16.9%

Regeneration Annual income change: 6.2% Annual poverty rate change: -0.6% Annual unemployment change: -0.1%

Tennessee ranks as the second-best area for first time buyers. Property prices have increased a huge 20.8%, the third most significant in rises out of all US states after Florida and South Carolina. Tennessee has also seen a positive 16.9% growth in business applications and a promising 3.1% influx of young people moving into the state. Regeneration is also looking up in Tennessee, with income increasing by 6.2% and poverty falling by a dramatic 0.6%, the greatest fall of all US states.

Tennessee has seen the largest reduction in poverty of all states since 2018. Non-profit organisation Habitat for Humanity celebrated building its 5,000th house in the state of Tennessee in December 2022. More than 100 of these homes were built in partnership with local families living below the poverty line.

3. Arizona - 7.14/10

Annual house price change: 10.6% Inflow of 25-34-year-olds: 3.4% Travel time to work: 25.8 minutes Change in business applications: 13.9%

Regeneration Annual income change: 7% Annual poverty rate change: -0.4% Annual unemployment change: -0.2%

The future of the property market in Arizona is looking up, as it ranks as the third best area for first time buyers in the US. Arizona records positive growth in house prices (10.6%) and businesses (13.9%). Regeneration indicators are all positive, too. Annual income has increased by 7% and unemployment and poverty have fallen by 0.2% and 0.4% respectively.

In December 2022, The Arizona Housing Fund awarded $850,000 to several projects that will construct 200 additional housing units in the state. In addition, donations to the Arizona Housing Fund from home buyers and sellers in the state added up to more than $1.3 million, meaning more affordable houses are on the way.

4. South Dakota - 6.97/10

Annual house price change: 14.4% Inflow of 25-34-year-olds: 2.9% Travel time to work: 17.3 minutes Change in business applications: 6%

Regeneration Annual income change: 8.5% Annual poverty rate change: -0.3% Annual unemployment change: -0.2%

South Dakota earns the fourth from top spot for up-and-coming areas to invest in your first home in the United States. The state has seen the most significant increase in annual income of all states in the US (jointly with Idaho) alongside a 0.2% reduction in unemployment and a 0.3% reduction in poverty. South Dakota also records the shortest average travel to work time of just 17.3 minutes, suggesting transport links are abundant.

South Dakota Housing recently awarded a whopping $13 million for statewide affordable housing projects. Not only are property prices on the rise in South Dakota’s largest cities, Sioux Falls and Rapid City, but homes in rural South Dakota are also in greater demand than they were previously. Rural homes that historically had trouble finding a buyer are now selling a lot quicker.

5. Indiana - 6.77/10

Annual house price change: 13.3% Inflow of 25-34-year-olds: 2.7% Travel time to work: 23.9 minutes Change in business applications: 16.4%

Regeneration Annual income change: 6.6% Annual poverty rate change: -0.3% Annual unemployment change: -0.1%

Rounding off the top five up-and-coming states for buyers is Indiana. Property prices have increased by 13.3% over the past year, and business applications and income have increased by 16.4% and 6.6% over the last five years respectively. This pairs nicely with a 0.1% reduction in unemployment and a 0.3% reduction in poverty in the state.

While the average property price in Indiana has increased by 13.3% over the last year, housing sales have seen a 27% dip from November 2021 to November 2022. Despite this, Indiana has been featured on Realtor.com’s Hottest Housing Markets of the month for two months running as of December 2022.