London and the South East are expected to top the table for the best performing property markets in 2008, with nearly 70% of investors identifying these regions as hotspots, according to The Homebuyer and Property Investor Show.

The South East was the most popular region to move to over the last decade and is continuing to experience a shortage of stock, causing the vast majority of investors to believe the area will see the best house price increases of 2008. Many will be looking to purchase in the South East and London and the growth in buy-to-let interest in these regions will help to buoy the UK property market.

Despite commentary about the oversupply of new build flats in the UK’s major cities, the survey also showed that just over 40% of investors polled consider flats and apartments to provide the most profitable buy-to-let investment. The London market has remained stronger than other cities and demand for flats in the capital will contribute to a boost in the market.

Supply and demand is given as the main reason that the housing markets of the South East and the capital will continue to do well in 2008. The belief is also fuelled by the improved transport links, wealth, foreign buyers and regeneration across the area.

Merseyside was ranked as the second most promising area for property price rises due to being named the European Capital of Culture for 2008. However, the area still came far below London and the South East, with only 10% of investors confident in its performance.