East Midlands

Growth in private housing market rental levels, high employment rates and rising rates of average earning are driving up property prices in the East Midlands; the region is expecting a 6.67% average price increase by 2021.

This is the fourth highest increase across 12 UK regions, behind London, the East of England and the South East.

Predicted Property Hotspots

With its four urban centres of Derby, Leicester, Northampton and Nottingham and connectivity through the capital through road and rail routes, the East Midlands is a thriving economic hub.

The largest upwards increase in average house prices is expected to occur in the following four areas:

  1. South Northamptonshire
  2. Rushcliffe
  3. Harborough
  4. Derbyshire Dales

High employment rates in a region signify that house prices could increase. South Northamptonshire has one of the highest employment rates of any local authority area in the region at 83.7%, meaning that household incomes are particularly strong. Similarly, the Derbyshire Dales also has a high level of employment at nearly 81%, fuelling the pressure for property price increases.

Linked to high levels of employment, increasing rates of average earnings also impacts house prices. Rushcliffe district has experienced one of the highest rates of recent average earnings growth in the region with levels around 20% greater than the national average. Harborough has also seen high rates of recent average earnings growth, at around 13% higher than the national level.

Another indicator of increasing demand for house prices in the area is growth in private housing market rental levels. Both the Derbyshire Dales and South Northamptonshire have experienced a rise in residential property rental levels, indicating that the areas are expected to see strong increases in house prices.

Investment Snapshot

  • Investors from the East Midlands own two to three properties on average. The average total value of a property portfolio in the region is £871,682.
  • Across all UK investors, one in 10 (10%) own property/properties in the East Midlands. Forty per cent of these properties are being used for rental income and 40% as a home for family members
  • Over a third (36%) of investors in the East Midlands are planning to buy new property/ properties in the next three to five years.
  • They are modest about their investment prospects – investors in the East Midlands expect the average value of the property / properties they own to increase by 7.1% over the next three to five years (compared to a national average of 8.0%).

Key findings

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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