EXPERTS are predicting Worcester's next generation of residential properties will create a "boom time" for the city.

Multi-million pound developments have helped drive Worcester among the top six investment hotspots in Britain.

Exciting projects, including the Diglis Basin renaissance, the transformation of Lowesmoor and plans for an extra university campus, catering for an extra 3,000 students, are all set to make Worcester more vibrant.

These developments are generating interest from investors, keen to cash in on the buy to let potential of the market, in both new and existing properties.

Research by surveyors Knight Frank has identified Worcester as an up-and-coming alternative to the prime residential rental market areas in the country's main cities.

Its survey reveals investors can expect above-average capital growth as well as income yields of at least six per cent.

"Worcester is proving to be a good area, there's lots of new development going on, meaning lots of future investment," said Neil Kentish, sales manager at Knight Frank.

"People see the city as an emerging market and are looking to become involved in these exiting opportunities at an early stage.

"Investors have seen what has happened in different areas, such as with the regeneration of Birmingham and how that's taken off in a big way.

People are now looking to invest in smaller cities such as Worcester before the market really takes off. Investors are aiming to spread their portfolio of properties."

Large cities such as Birmingham, Leeds and Manchester hit the top six for generating income yields of at least six per cent.

Worcester, Dewsbury and Lancaster are the "less obvious" choices, which make up the remainder of the high yield income table.

The latest residential acquisition in the city is the purchase of Albion Mill, the former home to Worcester Royal Porcelain by developer Neil Grinnall.

The transformation, which is valued at £12m, is set to create 66 luxury loft-style apartments.

New apartments are also being developed within the city in The Tything, The Butts, City Walls Road, New Street, Friar Street and Foregate Street.

Diglis Basin: Luxury apartments, cafes, restaurants, a new health and fitness centre and a park stretching along the riverside are planned to make Diglis Basin the pride of the city.

The multi- million pound revamp of the 26-acre waterfront will see around 450 new homes, including 376 apartments and 83 houses, bringing around 1,083 people into the city centre to live.

Albion Mill: The former home to Worcester Royal Porcelain will be transformed into 66 luxury loft-style apartments with prime canalside views.

The £12m development will be opposite Diglis Road and Bath Road apartment developments.

Lowesmoor Trading Estate: The £50m shopping centre development will transform a run-down and neglected part of the city.

The site will include 18 apartments, a 60-room hotel, retail, office and restaurant space of 236,000sq ft on the site of the city's former vinegar works.

University Campus for the city centre: A campus for 3,000 students is planned for the disused Castle Street site of the Royal Worcester Infirmary. University College Worcester is well on course to achieve university status and is set to double in size. The influx of students will create extra demand on property rental within the city.

TOP reasons for investing in Worcester:

Affordable compared with neighbouring locations. Increasing numbers of people are coming from towns further south, such as Cheltenham and Bristol.

Improved transport links, such as the M5 have increased accessibility for commuters into Birmingham and farther afield.

Investors see the city as offering good initial returns (6.5 per cent) and the ability to benefit from more secure price growth in an established and historic landscape.

Prime sites, in central locations are achieving rental of £250/sq ft.