Population increases, high employment rates and a healthy start-up scene are driving property prices in the North West; the region is expecting a 4.01% average price increase by 2021.
This is the ninth highest increase across 12 UK regions.
Predicted Property Hotspots
The North West includes everything from the bustling cities of Manchester and Liverpool, to the picturesque Lake District.
The largest upwards increase in average house prices is expected to occur in the following four districts:
- Trafford in Greater Manchester
- Ribble Valley in Lancashire
- Warrington in Cheshire
- Stockport in Greater Manchester
In Trafford the overall population is expected to increase by 4.2% over the next five years, the fourth highest level of growth in the region, contributing to an above average increase in demand for housing in the area. Similarly, Warrington’s population is expected to increase by around 3.3% over the next five years, and in Stockport the population is expected to increase by around 2.7% over the same time period.
Ribble Valley has one of the highest current employment rates of any local authority area in the North West (81.4%), meaning that average household incomes in the area are particularly strong, which fuels the pressure for house price increases. Warrington is expected to experience one of the highest levels of short to medium term employment growth in the region at 2.5% growth over the 2015 base level.
Another strong indicator that house prices are set to rise is a jump in the number of business start-ups. Trafford has the highest level of business start-up rates per capita in the region – 131.9 start-ups per 10,000 working age population. Stockport also has the one of the highest levels of business start-up rates per capita in the region at 94.6 start-ups per 10,000 working age population.
- Investors in the North West own two properties on average. The average total value of a property portfolio in the region is £824,827
- Across all UK investors, one in 10 (10%) own property/properties in the North West. Almost half (47%) of these properties are being used for rental income
- Forty-one per cent of investors in the North West are planning to buy new property/ properties in the next three to five years.
- Investors in the North West are modest about their investment prospects – they expect the average value of the property / properties they own to increase by 7.4% over the next three to five years (compared to a 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.
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