House prices set to soar despite the uncertain economic climate
UK HOUSE prices have been predicted to rise by more than six per cent in the next five years – bringing the average property value to almost £300,000, according to new research.
The growth has been forecast by Barclays, which predicts the UK property market will remain buoyant with prices set to rise by an average of 6.1 per cent by 2021, despite the current uncertain economic and political climate.
In Yorkshire prices are set to rise by an average of 3.6 per cent over the next five years, the research revealed, with Harrogate predicted to see the region’s largest property price increases at 13.3 per cent.
The North Yorkshire spa town has experienced a high rate of growth in private housing market rental levels in recent years, indicating the likelihood of increasing demand for property in the area, according to the bank. It also has one of the highest current employment rates of any local authority area in the region – 84.7 per cent – meaning that average household incomes are particularly strong.
The second fastest-growing property hotspot is Selby, which the research predicts will see average prices increase 12.3 per cent over the next five years. It also has a high employment rate, with 87.2 per cent of its population in work.
In third place is Craven which will see 11 per cent average property prices increases, followed by Hambleton, which is expected to see prices go up 10.1 per cent by 2021.
The Barclays UK Property Predictor used factors including rental trends, employment levels and commuter behaviour, as well as current house prices, to create an index of property hotspots.
It also surveyed high net worth investors in Yorkshire and the neighbouring North East to reveal the size of their property portfolios and plans for future investments.
Investors from the two regions own three properties on average. The average total value of a property portfolio in the region is £759,469. When asked about future property plans, over a third said they plan to buy new properties in the next three to five years, according to the research by Barclays Wealth and Investments.
Investors are confident about their property investments, expecting the average value of the properties they own to increase by 6.9 per cent over the next three to five years, Barclays said.
Across all respondents, more than one in 10 own properties in Yorkshire and the North East, with almost half of these being used to generate rental income.
Martin Cuthbert, regional director of Barclays Wealth and Investments in Yorkshire, said: “There are already many reasons to live in Yorkshire, from its friendly folk and fields of green, to boasting this year’s City of Culture, Hull. This research shows that it also offers great property investment opportunities.
“The economic growth forecasts show solid potential for the housing market to expand, and high net worth individuals are recognising the region’s attractiveness.”
According to the National Housing Federation’s Homes Truths 2016/17 report, those earning less than £39,811 a year are now priced out of buying the average home in Yorkshire.
Local salaries have failed to keep up with house prices, meaning the average home in the region – costing £174,171 – is now more than seven times the average regional income of £24,284.
The situation is worst in the Harrogate district, where the average house price of £305,442 is 11.3 times the average local salary of £26,983.
There are already many reasons to live in Yorkshire. Martin Cuthbert, regional director of Barclays Wealth and Investments in Yorkshire.