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UK house prices predicted to SOAR by six per cent

The 6.1 per cent growth has been forecast by Barclays Bank, who also say buy to let investors and high net worth millennial investors will lead the boost.

Barclays also predict property hotspots will emerge in the north of england thanks to employment opportunities and business start-up rates which will help close the gap on the current property hubs of London and the south-east.

The report predicts the UK property market will remain buoyant with prices set to rise by an average of 6.1 per cent by 2021, despite an uncertain economic and political climate at the moment. The report comes as the most expensive seaside towns in the UK have been revealed.

This is thanks to high employment rates and an increase in rates of average earnings contributing to rising property prices across the UK.

London has been named as the area expected to see prices rise the most, with growth of 11.88 per cent.

This is followed by the east of england with growth of 9.38 per cent, the south east with growth of 8.74 per cent and the east midlands with growth of 6.67 per cent.
Scotland and the west midlands are both predicted to see prices rise by 5.88 per cent.

However, although the south is expected to see the largest property price increase over this period, investors are looking for value for money and income stability, and so will fuel rises in the north.

According the Barclays Bank research, 38 per cent of high net worth investors planning to purchase property in northern regions think property prices are going to rise there.

Figures from the Council of Mortgage lenders showed that buy to let lending has slowed, but the Barclays research suggests it is on the rise among investors who want to expand their portfolios despite the recent tax changes that affect them.

Dena Brumpton, chief executive officer of Wealth and Investments at 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.

“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.”