Barclays Bank have forecast a 6.1 per cent growth in property prices between now and 2021- welcoming news for anyone worried about the impact of Brexit on the economy. And whilst it was once London and The South seeing the biggest growth, according to Wimbledon estate agent, Robert Holmes there are now plenty of other property hot spots seeing significant boosts. The main reasons for the growth in the North of the country has been new job creations and friendly business start-up rates, combined with an increase in average earnings.
But that doesn’t mean London sellers need to panic- the capital is also still seeing rapid growth, with an average hike of almost 12 per cent. Next in line comes the East of England, which is currently seeing growth of 9.38 per cent, closely following the South East who are just behind at 8.74%. The East Midlands are catching up though, with reported property values growing by 6.67 percent. Last, but by no means least, are Scotland and the West Midlands- both set to see unprecedented boosts in property value of up to 5.88 %.
Whilst the South of the country continues to do well, it’s the great value for money that’s attracting more and more property investors to the North. Denhan Guaranteed Rent says, “The report from Barclays Bank tells us that 38% of serious property investors are looking further North. This previously relatively untapped market is attracting significant interest from high net worth individuals with a lot of money to invest.”
According to the report, 27% of those who plan to buy properties in the North of the country say that rental income is their biggest motivator for investment. This new surge in property investors is rich with millennials looking for a fast way to make a substantial return on their money. Indeed, the report also says that it’s younger investors who will be responsible for driving the UK property market over the coming years.
Battersea estate agent, Eden Harper says, “Out of all the Millennial investors surveyed, over 40% of them have already started working on an impressive property portfolio. Compare this to just 23% of investors aged 55 or over, and it’s easy to see why young investors are such good news for the property market.”
The report also suggested that younger investors are more likely to buy multiple properties, compared to the over 55s who tend to have just one or two. Among these new savvy investors, the majority are reporting great returns from rental properties, which makes up for just under half of their annual income.
One thing is for certain- with the population on the rise and housing developers simply not able to cope with the increasing demand, there will always be money to be made in property. And if you’re in the fortunate position of being under 30 with cash to play with, you could well have the potential to make a tidy sum.