Expectations are high in the UK property market that prices will rise 6.1 percent in the next five years over perceived surge in buy-to-let. This, it is also expected, will bring the average property value in the region to almost £300,000.
A new research from Barclays Bank, which gave this hint, also predicts that buy to let investments and high net worth millennial investors are set to lead the way in fuelling the property market going forward, adding that they are likely to look for higher yields outside of London.
For yield-hungry Nigerians looking to off-shore investment, time is now to go for the UK market more so as it is expected that property hotspots will emerge in the North of England with employment opportunities and business start-up rates helping to close the gap on the current property hubs of London and the South.
Overall, despite an uncertain economic and political climate, the report says that the UK property market remains buoyant with prices set to rise by an average of 6.1 percent by 2021 with high employment rates and an increase in rates of average earnings contributing to rising property prices across the country.
“London is set to see prices rise the most with growth of 11.88 percent by 2021, followed by the East of England with growth of 9.38 percent, the South East up by 8.74 percent and the East Midlands up 6.67 percent, Scotland and the West Midlands are both projected to see price rise by 5.88 percent”, reports Property Wire, an online property portal.
The South West is expected to see price growth of 5.31 percent over the same period, the North East 5.31 percent, the North West 4.01 percent and Yorkshire and the Humber up 3.6 percent. Northern Ireland and Wales are set to see the lowest price growth at 3.04 percent and 2.88 percent respectively.
However, while the South of the country is expected to see the largest property price increase over this period, property investors are looking north for good value for money and income stability. Some 38 percent of high net worth investors looking to purchase property in northern regions think that property prices are going to rise there, with 27 percent who plan to purchase, citing strong rental income as a reason to invest there.
The report points out that the Midlands has the fourth highest expected price increase in the UK at 6.28 However, while the South of the country is expected to see the largest property price increase over this period, property investors are looking north for good value for money and income stability.
Some 38 percent of high net worth investors looking to purchase property in northern regions think that property prices are going to rise there, with 27 percent who plan to purchase, citing strong rental income as a reason to invest there.
Scotland has the fifth highest expected price increase at 5.88 percent. East Renfrewshire makes the top 20 areas of highest growth with an expected increase of 23.8 percent, with its large proportion of highly qualified residents expected to drive up prices.
The research reveals that younger investors will be a key driver in the growth of the UK property market over the next three to five years. The millennial investors surveyed have 41 percent of their investment portfolio tied up in property, compared to 23 percent amongst those aged over 55.
The younger group are also more bullish in their approach to investing in bricks and mortar with 75 percent intending to increase the percentage of their portfolio in property over the next three to five years, compared to just 10 percent of over 55s.
The research also shows that millennial investors are also more likely to own more than one property, compared to over 55s, and are reaping the financial rewards of multiple property ownership with 48 percent of their annual income generated from rent.
Those aged 18 to 54 who are planning to buy new property are more likely to take advantage of a buy to let mortgages to fund future property purchases at 23 percent compared to just 7 percent of those aged 55 and over.
CHUKA UROKO
