09 Jun 2017
Scotland has made it into the top five areas of the UK expected to experience the highest property price increases in the next five years.
Barclays reveals in a new report it anticipates an average annual rise in home values of 1.15% north of the border - giving an overall increase of nearly 6% between now and 2021.
The average value of a UK property is forecast to jump to almost £300,000 during the five years from a current £274,000.
The bank says factors contribute to rising property prices include high employment and an increase in rates of average earnings.
The south of England is expected to see the largest home price increases, but property investors are looking north for good value for money and income stability.
Over a third of high net worth investors (HNWI) seeking to purchase property in northern regions think that property prices are going to rise there, with over a quarter who plan to purchase citing strong rental income as a reason to invest there.
Barclays says London is top of the table, with an average annual increase in house prices of 2.27% and an overall increase of 11.88% over the five years.
The East of England is second (increases of 1.81% and 9.38%), the south-east is third (1.69% and 8.74%), East Midlands fourth (1.3% and 6.67%), while Scotland and the West Midlands are tied for fifth.
East Renfrewshire is the only location in Scotland to make the top 20 areas of highest growth - with a forecast annual increase of 4.37% and a five-year rise of 23.8%. Barclays says its large proportion of highly-qualified residents are expected to drive up prices.
The research also reveals that younger HNWIs 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% of their investment portfolio tied up in property, compared to 23% amongst those aged over 55. They are also more bullish in their approach to investing in bricks and mortar with 75% intending to increase the percentage of their portfolio in property over the next three-to-five years, compared to just 10% of over 55s.
Dena Brumpton, of 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.
“There is also increasing confidence among property investors, as many are taking a long-term view when it comes to putting money into property."
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