Value investing is a term you often hear in the property world. It doesn't just mean buying cheap, of course, it means buying a property at a good price with the expectation that the value will rise strongly. It means return on investment.

Like many smart strategies, of course, it's easier said than done.
The key is to look for pointers - indicators that show the growth potential of an area. And, if someone else is doing that research for you, so much the better.

One interesting piece of analysis is the Royal Bank of Scotland's First Time Buyer Property Index.

This ranks Britain's post codes not only in terms of their affordability for first-time buyers, but also for their capital growth potential.

A good indicator then for investors.

By analysing all of the factors affecting attractiveness and return on investment RBS has identified the top 22 most desirable property hotspots:

1. Lindley, Huddersfield, HD3
2. Bo'ness, West Lothian EH51
3. Cardiff, Wales CF10 Glamorgan
4. Scotton, Darlington DL9
5. Hawick, Berwick-upon-Tweed TD9
6. Huddersfield, West HD4
7. Middlesbrough, Teeside TS1
8. Nottingham City Centre, NG1
9. Burnley, Lancashire BB11
10. Reading town centre, RG1
11. Bethnal Green, East London E2
12. Newham, East London E15
13. Tiverton, Devon EX16
14. Blaenrhondda, Mid Glamorgan CF42
15. Rushmere St Andrew, Ipswich IP5
16. Almondsbury, Bristol BS32
17. Mickleover, Derby DE3
18. Canon Pyon, Hereford HR4
19. Grasscroft, Odlham OL4
20. Grantchester, Cambridge CB3
21. Highfield, Portswood SG17
22. Bratton, Telford TF5
The index is calculated across Britain's 2,800 postcode districts, using property data analysis and independent expert opinion - including chartered surveyors and estate agents - to examine a wide range of factors affecting potential future house price growth, together with current desirability for first-time buyers.

When all the factors are added up it provides an overall score for each area, allowing them to be ranked.
The national top 22 table is comprised of the top two locations from each of the 11 regional tables, which consist of the top 10 areas in each region across Britain.

Crucial ingredients

The key factors when determining future return on investment are low house price to high income ratio alongside healthy regeneration plans.
Factors determining the current attractiveness of an area are the number of planned or recent new builds together with the quality of transport links to neighbouring towns, cities and major commuter routes.

Future plans for regeneration and developments increase affordability in the short-term, but also provides the promise of improved amenities, an influx of new residents and potential for house price growth in the longer term.
An example of this is the Docklands area of London, which during the 1980s underwent major regeneration, transforming it from an industrial wasteland to desirable homes for thousands of city professionals.

Warning!

But, as we said above - it's never that simple.
The constantly evolving nature of the property market shows that a number of hotspots identified last year don't even make the list this time around.
Openshaw, on the outskirts of Manchester topped last year's national table, but doesn't even get a look in this time around.

Lovely Lindley?

But what does. Lindley, the 'top of the props' on the outskirts of Huddersfield, in Yorkshire, have going for it?

Well the whole area is currently the focus of major property redevelopment with some interesting new build projects and the restoration of 19th century mills into luxury apartments.

The area has experienced 125% growth in house prices over the last six years, which is considerably higher than the national average of 103%.
On the price front, the average home in Lindley costs a mere '138,886 compared to the national average of '193,489.

Situated just a few minutes drive from the M62 motorway high in the Pennines, Lindley boasts two good primary and junior schools and also has easy access to surrounding moorland.

The centre is dominated by the spectacular art nouveau clock tower, a gift to the village from well-known local benefactor James Nield Sykes in 1902.
In the heart of Lindley, Equilibrium is a landmark development of 123 apartments just a few hundred yards from the Huddersfield Royal Infirmary, that has been marketed very much with investors in mind, and hundreds of new homes are being built in the area, with major redevelopment projects including the former College of Education site in Holly Bank Road and the former Yorkshire Electricity Board offices.

The booming heart of Yorkshire

One of the area's particular strengths is its proximity to the economically booming city of Leeds - just a 30 minute drive away. Transforming itself into the vibrant heart of Yorkshire has benefited areas nearby as young professionals seek desirable locations within easy reach of employment in the city centre.

Huddersfield itself has risen to the challenges of the post-industrial economy with plans based around turning the town's streets and square into active public spaces.

Already it feels welcoming thanks largely to the efforts of regeneration agency Huddersfield Pride which was founded in 1995 and recently managed '5.5m SRB funding which attracted a further $18m of public and private funding.

The Waterfront Quarter, unveiled recently, is one of the biggest projects ever devised for the town, modern top quality offices, 500 apartments and a number of shops make up the scheme, which will have a frontage along the river Colne, is expected to cost in the region of '200m.

Yorkshire Forward have given the scheme a warm reception and Kirklees Council leader Kath Pinnock said that transformational products like this are indicative of the widespread private-sector confidence which exists in Huddersfield.

"I truly believe that this flagship development, together with other schemes currently being discussed, will put Huddersfield firmly on the West Yorkshire map, and secure our economic future for years to come," said Pinnock.

If planning permission is granted and no problems or setbacks occur, it is hoped that work will begin on the site at the start of 2006.

The Huddersfield Demand Assessment, prepared by Kirklees Council by property consultants Knight Frank, forecasts that economic growth in the area will be, on average, 2.5% per annum over the next ten years.
If that happens, the town will be one of Yorkshire's strongest performers and there will be stronger demand for new or better utilised residential and business property.

Ken Gillespie, Kirklees Council's director of regeneration, said: "Knight Frank have analysed the economic case for investing here, and now we are keen to talk to developers and investors about ambitious schemes which can take the town well into the 21st century."

There are certainly plenty of opportunities for buy-to-let already as the town looks ready to be taken over by a whole generation of young professionals seeking city style living in the town's many converted mills.
Two years ago Knight Frank believed that Priestroyd Mill, which was transformed into huge blocks of 100 flats, was the UK's fastest-selling development. It sold at a pace that was unprecedented, even when compared to the Leeds and Manchester markets at their height.
But that claim to fame was taken away when a residential mill conversion on Firth Street sold 52 out of 57 flats in under three hours.

Alec Michael, of property agents Eddisons said: "That type of development would have been unheard of in Huddersfield four or five years ago."
All in all Lindley, and Huddersfield itself, offer excellent ongoing opportunities and are well worth further research by property investors, we believe.