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Region’s house prices set to outperform

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House prices in the East of England are set to rise faster than the national average over the next five years as the region's strong business environment and easy connections to London attract new residents, says a report from Barclays. The bank's UK property predictor forecasts house prices in the region will rise by an average of 9.38 per cent over the next five years, whilst nationally prices will rise by 6.1 per cent to £300,000.

South Cambs is forecast to be one of the hotspots driven by widespread affluence with prices expected to rise 22.2 per cent by 2021. Others include St Albans (where house prices are set to rise by 38.8 per cent) Three Rivers (34.6 per cent) and Uttlesford, which includes Stansted Airport (30 per cent). A key indicator of higher prices is the number of highly-qualified residents, who are likely to earn more.

Simon Smith, regional director, Eastern, Barclays Wealth and Investments (photo), said: “The East of England has a strong and vibrant local economy, with residents enjoying higher than average earnings, which is fuelling price increases in the local property market. Our proximity to London also has a significant impact on prices in the area. With large companies locating to the region and people looking to escape the city, the East of England has become a popular destination which is creating competition for available housing.

Investor snapshot

Investors from the East of England own one to two properties on average, and the average total value of a property portfolio in the region is close to £950,000. When asked about future property plans, Eighteen per cent said they plan to buy new properties in the next three to five years. Investors here are confident about their property investments, expecting the average value of the properties they own to increase by 7.6 per centover the next three to five years.

Across all respondents, more than one in 10 own property/properties in the East of England and more than a quarter are being used for rental income.

Last Updated ( Friday, 28 July 2017 11:29 )