East of England
Rising employment opportunities is driving property price increases in the East of England; the region is expecting a 9.38% average price increase by 2021.
This is the second highest increase across 12 UK regions, behind London.
Predicted Property Hotspots
The strong business environment in the East of England and easy connectivity to London is attracting new residents looking to escape the city without compromising on professional opportunities. With high rankings for both salary rates and life expectancy, the East of England is popular for home-buyers seeking a rich quality of life on the outskirts of London.
The largest upwards increase in average house prices is expected to occur in the following five districts:
- St Albans in Hertfordshire
- Three Rivers in Hertfordshire
- Uttlesford in Essex
- Hertsmere in Hertfordshire
- South Cambridgeshire in Cambridgeshire
The region has one of the highest rates of average earnings growth providing impetus for future house price rises. Average earnings for full time workers in St Albans are currently around 46% higher than the UK average. South Cambridgeshire is also expecting one of the highest rates of average earnings growth at 25% higher than the average for the rest of the country.
An increase in business start-ups in the region indicates strong levels of prosperity and is a signal of medium term employment growth, which will also impact house prices. Hertsmere has one of the highest levels of business start-up rates per capita in the region at 186 per 10,000 working age population.
Both Three Rivers and South Cambridgeshire are experiencing growth in employment rates. Three Rivers district is expected to experience one of the highest levels of short-to-medium term employment growth pressure in the region (5.6% growth over the 2015 base level), adding to the base of people likely to want to reside closer to their place of employment. South Cambridgeshire has one of the highest current employment rates of any local authority area in the region at 83.4%, meaning that average household incomes in the area are particularly strong, which also fuels the pressure for house price increases.
Overall the East of England has a high number of residents who are highly qualified and attracted to the area by good transport links and proximity to London, pushing up house prices even further.
- Investors in the East of England own one to two properties on average. The average total value of a property portfolio in the region is £947,106
- Across all UK investors, more than one in 10 (12%) own property/properties in the East of England. More than a quarter (27%) of these properties are being used for rental income
- Eighteen percent of East of England respondents 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 of England expect the average value of the property / properties they own to increase by 7.6% over the next three to five years (compared to national average of 8.0%)
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.
News and insight
Relevant financial news and information around how recent events and legislation could affect your wealth.