In a report from Barclays Bank, average property prices in the UK are predicted to rise by 6.1% over the next 5 years.
Buy to Let Surge
The Average property value is expected to hit £300,000 by 2021. It is anticipated that the price gap between north and south properties will begin to close as hotspots in the north will emerge over the coming years.
Barclays looked into a variety of factors such as current house prices, employment levels, rental trends and commuter behaviour in order to determine the up and coming property hotspots throughout the UK.
While the uncertain political and economic climate was taken into consideration, the report details that high employment rates coupled with increases in average earnings will result in rising property prices throughout the country to an average of 6.1% by 2021.
On a regional level, London is expected to see the largest increase with an annual price jump of 2.2%. This will result in a huge cumulative rise of 11.8% across the next 5 years. Following closely behind is East Anglia at 9.3% and the South East with a predicted rise of 8.7% by late 2021.
Wales and Northern Ireland sit at the bottom of the table. However, they are still forecasted increases of 2.8% and 3% over the next 5 years.
“Many Contributing Factors”
The research suggests there a many contributing factors to the increases. However, one of the major forces behind the growth of the UK property market will be younger investors looking to expand their portfolio. It was revealed that 75% of young investors intend to invest in bricks and mortar over the next 3 to 5 years.
Chief Executive of Barclays Wealth and Investments Division, Dena Brumpton, said that “It’s encouraging to see that property is still viewed as an important part of the investment portfolio with high net worth investors typically owning three properties and over a quarter planning to buy property because they believe that it offers long-term investment security”
Brumpton went on to say. “There is also increasing confidence among property investors, as many are taking a long-term view when it comes to putting money into property. It’s also interesting to see from our research how investment prospects are emerging outside of the established property heartland of London and the South of England, with economic growth and employment opportunity fuelling growth in hotspots across the UK.”
