It can be a challenge, especially if you don't know an area very well, to identify where the best places to buy a property in terms of investment are hiding. Towns, villages or suburbs that may not currently look like the real deal but in a few years time you might actually be glad you invested in the area and got yourself a property deal as prices start to soar.
Every year The Sunday Times strives to identify the next property hot spots in the UK, and the list usually comprises some previously included areas that continue to grow and some new and maybe surprising additions.
The annual look for the best places to invest is all about 'identifying those dreary overlooked suburbs, down-at-heel city centres and middle-of-the -road addresses that have all the right ingredients to be something bigger and better than the sum of their parts, and are set to change'.
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The idea is to buy in early and enjoy being part of the transformation, while also transforming your own bricks-and-mortar fortune. Previous Welsh inclusions have included Penarth, which is now so hot it can match the summer sun shining down on its coastal location.
Of course, investing in an area by making the most expensive purchase of your life just based on The Sunday Times annual up-and-coming list is not advised, but it's a great place to start your search and research further. Aspects to consider include planned infrastructure developments, where even a small change can make a big difference.
The Sunday Times states the example of the introduction of a 20mph speed limit in Usk that has caused sat nav algorithms to divert lorries away from the town. Also, planned business development and existing facilities can hint at a hot spot; 'interesting shops, restaurants, cinemas and theatres aren’t just good for their own sake, but can have a snowball effect, encouraging other similar businesses to set out their stall'.
The Covid-19 pandemic has, of course, had its own ripple effect on property and on working practices and The Sunday Times has reflected this within their consideration, saying 'in the pre-pandemic era coffee, cocktails, culture and commutability would have been high on property shopping lists. Now it’s all about space, spare rooms to work from home and transport links that are just good enough in case we're back to the office again'.
The 2022 list of up-and-coming places in the UK highlights four locations in Wales to maybe look at more closely, and they are all places where maybe their more famous or active neighbours have become so expensive many people on the hunt for a property at a reasonable price are pushed out to adjacent areas, so creating a potential future hot spot there; it's known as the ripple effect.
Noticeable examples in Cardiff include Pontcanna becoming one of the most expensive suburbs in south Wales pushing buyers out to Canton. Now Canton is seen as an uber cool address and has experienced property prices climb, so rippling out to Grangetown. Now Grangetown is considered to be one of the main property hot spots in the city fuelled also by the substantial redevelopment of brown sites on the opposite side of the river Taff.
Tywyn, Gwynedd
The Sunday Times states that this small town on the Cardigan Bay coast is poised to benefit from the overspill from overpriced Aberdyfi, six miles down the coast. It has a beautiful blue flag award-winning beach with a long promenade perfect for a sunset stroll, dolphin watching or tucking into an ice cream.
The town shares the same rugged mountain backdrop as its more expensive Gwynedd neighbour. It may not be considered as pretty as Aberdyfi but what it lacks in glamour it makes up for in practicality. It has a cinema, supermarket and restaurants, and there’s no need to fight for a parking space - yet.
Property portal Zoopla states that within the last year there have been 58 sales in and around the town with the average sold price being £235,544. Overall, sold prices in Tywyn over the last year were 30% up on the previous year and 27% up on the 2007 peak of £167,720.
Rightmove states that the majority of sales in Tywyn during the last year were semi-detached properties, selling for an average price of £167,917. Detached properties sold for an average of £307,409, with terraced properties fetching £192,700.
Barmouth, Gwynedd
Wander further north up the Cardigan Bay coast and you arrive at the seaside town of Barmouth. As the glorious Mawddach estuary meets the sea and the towering peaks of Snowdonia and the Cader Idris range dominate the horizon and the start of the Snowdonia National Park is only about 500 metres away, the location in and around the coastal town of Barmouth is spectacular - nature at its finest.
Visit Wales states that Barmouth is southern Snowdonia's most popular seaside resort, stating: "In summer, its big sandy beach is a magnet for visitors, yet there’s so much space along miles of unbroken sands that it never gets overcrowded."
The Sunday Times says it's continuing its 'designer makeover' from ' bucket-and-spade to Farrow & Ball, with the arrival of some smart restaurants and interesting independent shops'.
There are plenty of events to keep you occupied too, including the Barmouth to Fort William Three Peaks Yacht Race, the Barmouth Food Festival and the Barmouth Walking Festival. And when there's not an event in the area to get involved with, the town has plenty of options for eating and drinking, socialising, strolling and surfing.
Zoopla states that the average sold price for a property in Barmouth in the last 12 months is £305,303 across 18 sales. Overall, sold prices in Barmouth over the last year were 42% up on the previous year and 51% up on the 2019 peak of £199,860.
Rightmove report that the majority of sales in Barmouth during the last year were flats, selling for an average price of £129,636. Detached properties sold for an average of £602,500, with terraced properties fetching £194,600.
Ferryside, Carmarthenshire
Pop over the border from pricey Pembrokeshire and you can find a cool and cheaper place to live in beautiful Carmarthenshire, if you look hard enough. Ferryside is a village located in the mouth of the river Tywi, so there's no compromise on stunning locations on this side of the county border.
The Sunday Times agrees that over the border is a the place to be, ' full of pretty market towns such as Llandovery and Llandeilo' - which was named the best place to live in Wales in 2022, find out more about that here.
Originally a ferry crossing, the village developed into fishing too and is now nestled within a popular holiday and retirement area and growing in popularity as a place to call a permanent home, according to The Sunday Times.
The village has a beach composed of the sand and tidal marshes on the shores of the river, backed by sand dunes and is a relatively hidden and so peaceful spot in west Wales to spend the day, or your life, idling the hours away soaking up the natural beauty of the location.
In 2021 The Guardian proclaimed Ferryside as one of Carmarthenshire's best kept secrets. The village not only has the scenery as its heart but also the community. In 2015 10 trustees took out a 99-year lease on a disused building and created the now award-winning restaurant Pryd o Fwyd followed by the hotel Calon y Ferri and Ferryside Men's Shed, a meeting place for making and building.
Zoopla's data states that there were nine sales in the town over the past 12 months and the average sold price is now £236,000. Overall, sold prices in Ferryside over the last year were 11% up on the previous year and 1% down on the 2019 peak of £249,566.
The majority of sales in Ferryside during the last year were semi-detached properties, selling for an average price of £203,500. Detached properties sold for an average of £340,000, with terraced properties fetching £140,000.
Splott, Cardiff
If Grangetown has been identified in the past as a hotspot that continues to heat up, the other side of the river sees Splott coming more into focus for with first-time buyers and bargain hunters
The Sunday Times rightly recognises the suburbs of Roath and Canton continuing to boom but states that Splott is the new hot spot, stating that the area's tough history has spawned an enviable sense of community. Do you live in Splott or Cardiff and agree with this statement about Splott? Let us know in the comments section below.
As the city spread in the late 19th century two the suburb was created on the land of two farms that has given the district arguably the best name in Cardiff; Upper Splott Farm and Lower Splott Farm. Read more here about the history of Splott, from steel to vanishing streets, from its rough reputation to gentrification.
The last 12 months have seen a very active property market in this Cardiff city centre suburb, with 88 sales producing an average sold price of £195,464 according to Zoopla. Overall, sold prices in Splott over the last year were 7% up on the previous year and 17% up on the 2019 peak of £165,900.
The majority of sales in Splott during the last year were terraced properties, selling for an average price of £201,431, which is not a surprise as this is the over-whelming type of housing stock available in the suburb. Flats sold for an average of £128,591, with semi-detached properties fetching £207,250.
Do you agree with The Sunday Times' predictions that this quartet of locations are the next big property hot spots in Wales? Tell us what you think in the comments section below. And don't miss the best dream homes in Wales, renovation stories and interiors, join the Amazing Welsh Homes newsletter which is sent to your inbox twice a week.
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