The next four years will see the UK’s house prices rise by over six percent, according to research recently published by Barclays Bank. By 2021, the research states, the average house price in the UK will hit £300,000.
London and the South are set to continue being the healthiest property spots, however the report projects that new employment opportunities – thanks to new business start-ups – will create several property hot spots in the North of England. Further enhancing the outlook of the UK property market outside of the South and South East will be high net worth investors of the millennial generation, as well as a significant increase in buy to let investors all around the country.
Confidence Increasing Among Property Investors
The Chief Executive Officer of Wealth and Investments at Barclays, Dena Brumpton, explained, “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. 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.”
High Employment Rates to Fuel Buoyant Housing Market
The report by Barclays Bank forecasts that the overall average house price will rise by 6.1% by 2021, with that healthy upward curve energised by high employment rates as well as an increase in the rates of average earnings.
Of course, that 6.1% figure doesn’t always paint the most accurate figure as it is an amalgamation of all the different areas of the country. For example, the report declares that London will actually see house price rises of over 11% during the same period, while the East of England will see rises of over 9%. Also above the average mark is the South East which will see house price rises of just under 9%, while the East Midlands should experience a rise of 6.67%.
Under the average line are Scotland which will see a rise of just a little under 6%, as will the West Midlands. However, the overall average of the UK is brought mostly down by Northern Ireland and Wales, which will see rises of just over and just under 3% respectively.