June 2007

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UK property hotspots revealed by home insurer MORE TH>N

‘YAPPY INDEX’ REVEALS NATION’S NEXT PROPERTY HOTSPOTS
- Insurer develops index revealing the nation’s next property hotspots by tracking concentration of young affluent professionals
- Young affluent professionals identified by ownership of goods such as iPods, usage of broadband and frequency of city breaks
- The next big property hotspots include Everton in Liverpool, Ordsall in Salford, West of Newcastle city centre, and Holbeck in Leeds

A new index, the Young Affluent Professionals Index (‘YAPPY’) – created by home insurer MORE TH>N, identifies areas of the country that are set to be the property hotspots of the future. The index tracks data on the ownership of particular household goods typically owned by young affluent professionals, whose presence in an area tends to signal the start of a healthy housing market.

The YAPPY index reveals the top 351 areas of the country emerging as desirable locations for young affluents. These areas have been identified by measuring ownership of goods such as iPods and plasma TVs; usage of broadband and SkyPlus; frequency of city/short breaks and collection of Air Miles; and those with earnings of over £27,000. All are key indicators of the presence of young affluent professionals. While London unsurprisingly dominates the rankings, the YAPPY index reveals some interesting new hotspots, including:

- Kingston Quay, Glasgow – a new development in Glasgow city centre that has seen regeneration over the past few years.
- Ordsall in Salford – being developed to emulate Salford Quays, the area is fast becoming desirable. There has been an influx of newly built homes in the area in recent years.
- Everton in Liverpool – council tower blocks that previously housed asylum seekers have been redeveloped to create new luxury apartments, with potential buyers queuing overnight to secure the chance to buy an apartment.
- West of the city centre in Newcastle-upon-Tyne – this area of the city was previously undeveloped but developers are now investing in the area, particularly around Westgate Road.
- Holbeck in Leeds – this area on the edge of the city centre is under development and is set to be an up-and-coming area.

The indicators chosen for the YAPPY index2 are a reflection of the lifestyle habits of young professionals. They have been used to spot areas that have an influx of these wealthy professionals – who tend to move to previously unfashionable areas and set new property trends.

Keith Maxwell, head of home insurance at MORE TH>N, said: “Low inflation coupled with a stable economy has led to increased consumer spending on items such as electrical goods and kitchen and bathroom improvements. As the total value of people’s home contents has increased so has the potential for them to be underinsured. We offer all our customers not just those with YAPPY lifestyles £75,000 worth of cover as standards so they can rest assured that they’re well taken care of.”

Peter Bolton-King, Chief Executive, National Association of Estate Agents, commented: “Spotting the areas where future house price growth will occur has become the holy grail for this nation of homeowners, and one indicator is to pinpoint the areas where young affluent professionals are moving – this tends to be an early warning that previously unfashionable areas are becoming more popular. These results are an interesting reflection of the areas that young affluent people are residing in, and how wealth is currently being spread in the UK.

“It is no surprise to see London in the top ten, but the fact that Glasgow, Salford in Greater Manchester and Everton in Liverpool rate highly reflects the number of areas that have been redeveloped in recent years. There has also been an increase of apartments being built in city centres specifically targeting young professionals.”

Keith Maxwell concluded: “By tapping into current trends, our research shows that it is not just traditional factors such as the opening of new restaurants, coffee shops and gyms that indicate popular areas -a lot is dependent on what we purchase and how we live our lives.”

For more information on home insurance from MORE TH>N call 0800 300 660 or visit www.morethan.com/home.
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