Study reveals UK investment hotspots
A newly published study from Barclays has delivered a three-to-five year forecast of investment hotspots on the residential property market, revealing the best areas in the UK for increasing house prices and rental income.
Based on a range of factors, the study takes into account rental trends, employment levels, commuter behaviour and current house prices to create an accurate index of the country's property hotspots.
The research also took into account the views of a range of high net worth investors across Britain, who revealed where they planned to purchase a property in the near future, and why.
According to the study, the UK property market is set to remain buoyant in the coming years, with prices predicted to rise by 6.1 per cent by 2021. This would bring the average value of property in the UK to just under £300,000. Much of this increase has been linked to the South, but the research shows that the North is likely to offer investors the ideal combination of good value and income stability in the wake of Brexit.
In fact, the study found that Warwick in the West Midlands is one of the top 10 areas of highest growth, with an expected annual increase of 5.3 per cent thanks to the region's high earning rates and high level of business start-up rates.
However, Scotland was found to have the fifth highest expected annual price increase of 1.15 per cent, with East Renfrewshire named in the top 20 with a predicted increase of 4.37 per cent thanks to large population of highly qualified residents.
Despite a shake up in the results, the South continued to dominate the investment hotspots list, claiming nine out of the top 10 locations for property buying and buy-to-let investments. Richmond-upon-Thames took top place thanks to its affluence and employment rate, while St Albans was named in second place and Three Rivers, Hertfordshire took a respectable third.
Aside from regions, the research highlighted that millennial investors are purchasing more property than their more experienced counterparts. According to the data, 41 per cent of millennial investors have 41 per cent of their investment portfolio tied up in property, compared to 23 per cent of those aged over 55. Around three quarters of millennials also intend to increase the percentage of their portfolio in property in the next three-to-five years, compared to just 10 per cent of over 55s.
Commenting on the study, Dena Brumpton, CEO of Wealth and Investments and 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."
She added: "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."