The East Midlands is host to a handful of dynamic cities, such as Leicester and Nottingham, which feature a vast range of employment and leisure opportunities; there are also eight world-class universities in the region. With stunning countryside easily accessed from all of the major cities, inhabitants really can have the best of both worlds - in fact, the area is one of the most rural in England, with just under 40 per cent of the population living in the smaller towns and villages.
Road and rail links to the rest of the UK are good, and East Midlands Airport, which is conveniently located between Derby, Leicester and Nottingham, is well-served by budget and charter airlines, facilitating access to Europe.
Types of property
You'll find everything from the usual slick, new developments to rows of terraces and modern family homes in the urban hubs, but move just a little further out for period properties in the Georgian and Regency styles, as well as old stone cottages and farmhouses, plus old Rectory buildings set on acres of land.
With just £100,000 to spend, you could pick up a three-bedroom terrace home, complete with garden; you'll also find any number of flats in this price range, many of which are centrally located and that therefore represent a good buy-to-let option. With double that budget, you'll be able to afford a detached home or semi. Old, characterful stone cottages are also available, although in this price range, they'll usually be in need of renovations. You'll get a lot more home for your half-million in the East Midlands than you might expect to further south: think Grade II Listed Georgian and Regency buildings, as well as former lodge houses boasting loads of period features and chock-full of character.
Manor houses, old rectories and farmhouses will tend to set you back somewhere in the region of £1 million, but for this price, you'll usually also be getting lots of land, as well as extras like outbuildings and leisure facilities, like tennis courts. Since the rural East Midlands are so picturesque, you can also expect to get some stunning views for your money.
Investment potential
Prices in the East Midlands as a whole have risen by just over five per cent, which is only slightly below the national average of 5.4 per cent. The bottom line is that the area is gaining in value, but if fast returns are your aim, other areas of the country might be a better bet.
However, investors seeking flats with buy-to-let potential and with one eye on long term capital gains would do well to look towards Nottingham and Lincolnshire, where apartments have seen average increases in the last year of 5.4 and 11.4 per cent respectively. Rental yields in the East Midlands as a whole are in the region of 3-4 per cent; as an example, expect to charge between £700 and £800 per month for a two-bedroom flat in Nottingham City Centre, where flats make up over 75 per cent of the housing stock. Few of these are owner-occupied, and the area is one of the youngest in the country - all positive signs for the buy-to-let investor.
Popular buying locations
Northamptonshire, Derbyshire, Lincolnshire and Nottinghamshire have experienced more sales than the other East Midlands counties over the last year or so. In fact, more people relocated to Nottingham City in 2006 than any other UK city. The NG8 postcode is one of the most popular for families - it lies within the catchment area for a number of good schools, and detached and semi-detached housing makes up the bulk of the housing stock, most of which is owner-occupied. Average house prices are higher than the national, with capital growth of about 15 per cent over the last five years.
Up-and-coming areas
House prices in Leicester city rose nine per cent over and above the national average between 2001 and 2006 - but, with an average house price of around £138,000, it remains very affordable. The LE2 postcode, which features properties ranging up to £800,000, boasts a higher number of university graduates than any other area of Leicester, as well as a median age of 33, so it's a prime spot for the cappuccino culture and yummy mummy set that tends to have such a big impact on an area's desirability and worth.
In the City of Derby, average property price is £150,237 - an increase of over nine per cent in the last year. Northamptonshire has also experienced growth, with an increase of over 6 per cent, up to £174,510. Leicestershire also up nearly six per cent to £186,670, although this is showing signs of slowing down.
With thanks to BuyAssociation.
