South East

High rates of growth in the private housing market and a boost in jobs growth are driving up property prices in the South East; the region is expecting a 8.74% average price increase by 2021.

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

Predicted Property Hotspots

Its proximity to London and connections to several national motorways have led to the South East becoming an economic hub, with the largest economy in the country outside the capital. The region is known for its countryside which includes national parks and beaches.

The largest upwards increase in average house prices is expected to occur in the following five districts:

  1. Mole Valley in Surrey
  2. Waverley in Surrey
  3. Elmbridge in Surrey
  4. Windsor and Maidenhead in Berkshire
  5. Hart in Hampshire

A boost in jobs growth pushes up house prices and the South East is expected to see a 2.2% increase over the next five years. Mole Valley has one of the highest business start-up rates per capita in the South East (with just over 125 starts per 10,000 working age population), which will increase the demand for housing in the area. Windsor and Maidenhead has an even higher business start-up rate per capita in the South East with over 154 expected each year per 10,000 working age adult. Waverley will also see a high level of business start-up rates, with over 141 starts per 10,000 working age adult.

Another indicator of demand for housing and driving up prices is residential property rates. Waverley has experienced a high rate of growth in private housing market rental levels, indicating the likelihood of increasing demand for houses in the area. Hart and Elmbridge have also experienced a high rate of growth in private housing market rental levels, which will increase house prices in these areas.

Windsor and Maidenhead has the strongest rate of recent house price changes across the region as a whole, with average increases of over 19% occurring between 2011 and 2015. Alongside average earnings per full time worker around 31% higher than the UK average and its high business start-up rate, this makes Windsor and Maidenhead one of the fastest growing house price regions in the South East.

Investment Snapshot

  • Investors in the South East own three properties on average. The average total value of a property portfolio in the region is £1,611,381, second only to values in London
  • Across all UK respondents, one in 10 (12%) own property/properties in this regions. Forty-three per cent of these properties are being used for rental income
  • Almost half (46%) of investors in the South East are planning to buy new property/ properties in the next three to five years
  • They are modest about their investment prospects – investors in the South East expect the average value of the property / properties they own to increase by 7.7% 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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