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Barclays predicts positive 5-year growth for the UK property market…

Posted by Luke

Barclays Bank PLC has conducted detailed research into the current state of the UK property market and as a result forecasts a positive outlook over the next 5 years with UK property prices, on average, set to rise by 6.1%.

(Barclays, Ipswich Branch 2017)

Using the Barclays UK Property Predictor, the company has given a 3-to-5-year projection on residential property investment hotspots, defining key areas where house and rental income values will see solid future growth. 

Factors used to provide such data include rental trends, employment levels and commuter behaviour together with current house prices to present an index of UK areas attractive to buyers’.  High Net worth Investors from across the UK were also surveyed, to reveal their reasons and locations for future property investment.

By the end of 2021, London is expected to realise the biggest regional gains of 11.88%, followed by our region of East Anglia with 9.38%.  The South East comes in next at 8.74% then the East Midlands (6.67%), West Midlands and Scotland, both predicted 5.88% growth; other UK areas are also covered.

Based on the reported UK average property rise of 6.1%, average prices will reach £300,000 by 2021.

 Dena Brumpton, Chief executive of Barclays’ Wealth and Investments Division explains:

“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.”

The named property hotspots and summary of Barclays’ research can be found by clicking this link.