UK Property Predictor
The Barclays UK Property Predictor provides a three-to-five year forecast of property hotspots, revealing the areas across the UK where house prices and rental incomes are expected to see the biggest rises. The Property Predictor uses factors including rental trends, employment levels and commuter behaviour as well as current house prices to create an index of future property trends.
Based on the findings of the 2017 UK Property Predictor, we expect property prices to rise by 6.1% in the next five years, meaning the average property value would be £300,000 by 2021.
- While the south of the country is expected to see the largest annual property price increases over the next three to five years, the north is attracting investors because of its value for money and income stability. Thirty-eight per cent of high net worth (HNWI) investors looking to purchase property think that property prices are going to rise in northern areas.
- A key driver in growth of the UK property market over the next three to five years will be millennial investors who have 41% of their investment portfolio tied up in property, compared to 23% amongst those aged over 55. Millennial investors are more likely to own more than one property, compared to over 55s, and are reaping the financial rewards of multiple property ownership with almost half (48%) of their annual income generated from rent.
- Nearly two-thirds (65%) of property investors are buying bricks and mortar for rental income. Investors are leaning on buy-to-let to fuel their property portfolios, with research showing that sixty-two per cent of those with rental properties expect the proportion of the income they receive from rent to increase over the next three-to-five years, with half predicting it will rise by up to 20%.
- The Barclays UK Property Predictor provides our forward-looking view of how house price performance might turn out. It is not a guarantee of what will happen. House price rises could be more or less than our predictions and there might be falls in value. Changes in value may vary across different houses and different areas. Circumstances (typically economic, tax-related and political ones) can change and there are a number of factors that could cause actual results or developments to differ materially from the suggestions implied by our research. We don’t offer advice on investing in residential property. You should seek professional advice.
Dena Brumpton, CEO, Wealth & Investments, Barclays, said:
“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 Barclays UK Property Predictor reveals the areas across the UK where house prices and rental incomes are expected to rise. The research uses factors such as rental trends, employment levels and commuter behaviours, as well as a survey of high net worth individuals to understand where and why they plan to buy in the future.
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