# High streets remain an important factor for people choosing where to live – property investors on alert
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-11-15
Category: FINANCE
Category URL: https://financedigest.com/category/finance
Meta Title: Investing in UK High Streets: A Growing Opportunity
Meta Description: Discover the importance of local high streets in housing decisions post-pandemic. Learn how investing in bustling high streets can offer significant returns
URL: https://financedigest.com/high-streets-remain-an-important-factor-for-people-choosing-where-to-live-property-investors-on-alerthtml

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## UK high-streets may never be the same following the pandemic – however, with [46%](https://www.propertywire.com/news/over-quarter-of-britons-will-pay-a-premium-to-live-near-vibrant-local-high-street/\#:~:text=Over%20a%20quarter%20(27%25),million%20people%20across%20the%20country) of people still believing a vibrant local high street is important when choosing where to live and 27% willing to pay a premium to be near a good local high street – investors should take note.

New survey data  reveals that despite the impact of the pandemic, social distancing regulations, changing shopping habits, and cost of living, local high streets continue to play a significant role in where people are deciding to live.

As [Finbri](https://www.finbri.co.uk/) bridging loans comments, “The pandemic has greatly affected local high streets with many businesses struggling to stay open. However, with people looking to support their local  businesses and community now restrictions have lifted – a vibrant local high street  has become an increasingly important factor in determining where they want to live.

High streets are still important to buyers and Investors can take advantage of the growing opportunity to buy rental property and regenerate run down premises.”

## How important are local high streets when deciding where to live?

Around 46% of the respondents said that having a bustling local high [street was important when deciding where to live](https://www.financedigest.com/the-high-street-is-dead-long-live-online-shopping.html "The high street is dead – long live online shopping! "). Despite the difficulties facing local high streets since 2020, around three in ten UK adults ( [31%](https://www.propertynotify.co.uk/news/press-releases/britons-still-love-their-local-high-street-despite-covid-decline/)) would be more likely to ‘shop local’ compared to the pre-pandemic level.

There are a number of [factors that should be considered when deciding to move](https://www.financedigest.com/7-factors-to-consider-before-your-business-moves-to-a-subscription-model.html "7 Factors to Consider Before Your Business Moves to a Subscription Model") near a high street including:

**Price point.** The location and price point [often come hand in hand, prime locations near transport links and shopping facilities often have a higher](https://www.financedigest.com/investors-often-ignore-capital-gains-tax-but-should-consider-selling-now-to-avoid-a-higher-future-tax.html "Investors often ignore capital gains tax, but should consider selling now to avoid a higher future tax") premium compared to other locations.

**Employment opportunities.**  A high street that is vibrant with [businesses](https://www.financedigest.com/the-north-heads-south-to-mipim-en-masse-to-corner-new-real-estate-business-opportunities.html "The North heads South to MIPIM en masse to corner new real estate business opportunities") and people working will attract renters and buyers who are looking for good employment opportunities.

**Essential high street facilities and venues.** What do people look for in a high street? A post office ( [9](https://www.propertyreporter.co.uk/business/post-offices-revealed-as-the-most-in-demand-high-street-establishmen.html) [1% of UK adults surveyed](https://www.propertyreporter.co.uk/business/post-offices-revealed-as-the-most-in-demand-high-street-establishmen.html)), supermarkets (89%), GP/dentist (87%), convenience stores (78%), hairdressers (73%), restaurants (70%), cafes or coffee shops (68%) and pubs (61%), were all considered essentials for a good high street. Having a combination of the most sought-after amenities will improve the premium on the [property – investors](https://www.financedigest.com/certainty-in-an-uncertain-world-post-brexit-investors-turn-to-commercial-property-and-fixed-returns.html "Certainty in an uncertain world – post-Brexit investors turn to commercial property and fixed returns") should be aware of this and choose the location with demand in mind.

A thriving local high [street can provide a sense of community that can be less common in other places](https://www.financedigest.com/terraced-streets-most-neighbourly-places-to-live.html "Terraced streets most neighbourly places to live"). Indeed, analysis has shown that flats above retail premises can return [17%](https://www.ludlowthompson.com/property_news/property-tips-investing-in-flats-above-shops-1189#:~:text=Our%20research%20revealed%20that%20flats,5.4%25%20for%20similar%20properties%20nearby.) more rental yield than similar rental properties in the same area.

## Why is this important to investors?

Location has become more important than ever as the value of the high street increases, and with many people now [working from home](https://www.financedigest.com/savile-row-designer-on-working-from-home-winter-attire.html "Savile Row Designer on Working From Home Winter Attire"), they are looking for better quality housing that meets their needs – often this includes being close to good local amenities.

## Which locations are worth investing in?

There are already some clear bustling high-streets [emerging from the pandemic](https://www.financedigest.com/sunak-promises-more-spending-as-uk-emerges-from-pandemic.html "Sunak promises more spending as UK emerges from pandemic"). UK cities with thriving local high streets, with some of the most popular locations for [investors include Birmingham](https://www.financedigest.com/investors-see-the-future-in-birmingham-technology-start-up-synapse.html "Investors see the ‘future’ in Birmingham Technology Start-up Synapse"), Coventry and Nottingham. These cities have a combination of good transport links, plenty of employment opportunities, and a selection of shops and restaurants.

London has always been a popular choice for investors, however, in recent years there has been a shift to the North with many [people now looking for better value for money](https://www.financedigest.com/the-start-up-using-technology-to-help-the-20-million-people-in-britain-with-money-worries.html "The start-up using technology to help the 20 million people in Britain with money worries"). [Cities such as Liverpool and Newcastle have seen a significant increase in investment](https://www.financedigest.com/investing-in-the-city-thats-investing-in-itself-welcome-to-the-liverpool-of-the-future.html "INVESTING IN THE CITY THAT’S INVESTING IN ITSELF – WELCOME TO THE LIVERPOOL OF THE FUTURE!  ") over the past few years, and this is expected to continue as more people look to move away from the capital.

Of course, this doesn’t mean that every [city with a high street](https://www.financedigest.com/the-future-of-the-high-street-study-reveals-the-first-10-cities-in-the-uk-to-become-cashless.html "The future of the high street: Study reveals the first 10 cities in the UK to become cashless") will be an appropriate opportunity. It’s important to do your research and understand the local [market before making any investment](https://www.financedigest.com/2018-property-investment-market-to-be-harder-but-more-rewarding-experts-reveal.html "2018 property investment market to be “harder but more rewarding,” experts reveal") decisions. But if you’re looking for somewhere with potential, [cities with strong high streets are a good place](https://www.financedigest.com/downsizers-in-the-big-city-why-wembley-park-is-the-place-to-be-for-those-who-want-more-for-less.html "Downsizers in the big city – why Wembley Park is the place to be for those who want more for less  ") to start.

**Final thoughts**

The local high street is still an important [factor for many people when deciding](https://www.financedigest.com/trusts-vs-foundations-the-deciding-factors.html "Trusts vs Foundations: the deciding factors") where to live. For investors, this means that there is still potential to achieve good rental [yields and capital growth in areas with thriving high streets](https://www.financedigest.com/wall-street-drops-treasury-yields-gyrate-on-fed-chairman-powells-remarks.html "Wall Street drops, Treasury yields gyrate on Fed Chairman Powell’s remarks").

Furthermore, according to the data [around 19% of respondents indicated the decline](https://www.financedigest.com/around-40-of-german-companies-expect-output-decline-in-2023-iw-institute.html "Around 40% of German companies expect output decline in 2023 – IW institute") of their local high street had motivated them to sell their home or begin looking for a new one. But more importantly, 27% of people would [pay a premium](https://www.financedigest.com/finnish-businessman-zilliacus-ready-to-pay-premium-for-manchester-united.html "Finnish businessman Zilliacus ready to pay premium for Manchester United") to live in a location with a great high street nearby. By identifying locations that have a thriving high street, there will be [opportunities for investors](https://www.financedigest.com/the-vc-opportunity-breaking-down-barriers-for-private-investors.html "The VC opportunity: breaking down barriers for private investors "). But as with all [investment purchases](https://www.financedigest.com/questions-to-ask-yourself-before-purchasing-an-investment-property.html "Questions To Ask Yourself Before Purchasing An Investment Property"), there is likely competition attempting to pounce on the same opportunities so having access to fast finance to avoid missing out is vital.


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