Local economy
We considered the local economy to determine whether an area was performing well. Again, we looked at the younger population’s employment characteristics as a measure of their impact on an area. Their location and movement is invaluable to the buy to let investor.

Planning permissions
DIY activity increases as an area starts being gentrified. Early investors begin to buy old run-down properties in the less desirable areas, and start renovating them until they are ready for the buy-to-let market. Most often loft conversions or large money sums being spent on renovation indicate investor activity. In short, a good level of DIY suggests an up-and-coming area.

Restricted supply of property
Oversupply of property is bad news if you’re looking for a buy-to-let property. A large number of new homes that are not selling where many people have pre-bought as an investment suggests that investors are putting all their eggs in the same basket. As a result they end up competing with each other for the attention of potential buyers/tenants. This could mean that the investor has to offer discounts to stand out in a densely-packed market. Bad news for the property owner.

Bars, pubs and retail
An area that attracts people with an increasing amount of disposable income, is an important factor when choosing where best to invest. We looked at the levels of expenditure in each local authority to determine how much cash was being splashed on the high street.

Universities
Students provide a huge rental income for investors. They aren’t in full-time employment, and therefore unlikely to get a mortgage, so they rely on landlords for their accommodation needs. If an investor can pick an area brimming with students, then it is likely that there will always be high demand for rooms and flats to let.

Hospitals
Hospitals are big employers and bring a good supply of key workers to an area. Key workers are a large tenant group that prop up the buy-to-let market. Hospitals are therefore good indicators of a steady tenant supply.

Professional occupations
Those who are in professional occupations and are aged 20–35 are the target market for any investor. As their careers require them to change job as they climb the ladder, young professionals often move around a lot. Their mobility often prevents them from buying a home of their own, leaving them reliant on landlords for accommodation. This sector usually has a high earning capacity too, so they generate wealth wherever they go.

Planning permission
When investors or homeowners are spending significant sums of money renovating their properties, it suggests they have confidence in the local economy of an area. This usually attracts larger groups of like minded, house proud buyers who are sure to raise the economic landscape of an area. Firstly, check out the number of planning applications being submitted to the local council. If there’s a high number then it’s a good sign. It also might be a good idea to make friends with the council’s planning officer.

Premium stores
Organic food shops, boutiques and niche stores all suggest that there’s a good supply of wealthy patrons in the areas. This means it’s likely that the area will continue to prosper and attract new people. This is great news for investors as not only does it suggest a large pool of potential tenants, but also steady capital growth.

Skips
This is similar to the issue of planning permission. Skips are usually hired when people are making major renovations. If you see a relatively high number of yellow skips in a run-down area, it suggests than gentrification is hanging in the air. These are good visual clues that can be found just by driving around an area.

Winners: