Want to invest in buy-to-let? Here are the 20 hotspots where the price is likely to rise the most over the next three to five years.
Where are the best places in the UK to invest in buy-to-let property?
The Barclays UK Property Predictor has provided a three to five year forecast for the UK’s residential property market.
Prices across the country are expected to remain buoyant with an average increase of 6.1% taking the average property price to almost £300,000 by 2021. However, in some areas prices could rise by as much as 40%.
Here’s a rundown of the 20 areas likely to see the biggest rise in property prices.
20. Stratford-on-Avon, West Midlands
Thanks to strong employment rates, and high household incomes, the hometown of William Shakespeare is forecast to enjoy annual price rises of 4.23%, meaning they will be 23% higher in 2021 than they are now.
19. Hart, Hampshire
This picturesque town has repeatedly been voted the best place to live in the UK and there is increasing demand for property there. Barclays predicts that house prices will rise by 4.29% a year here, amounting to a 23.4% rise by 2021.
18. East Renfrewshire, Scotland
A large proportion of highly qualified residents are expected to drive up prices in this suburb of Glasgow making it the only Scottish region to get into the top 20. Property prices are forecast to rise by 4.37% a year and 23.8% in total by 2021.
17. Windsor and Maidenhead, Berkshire
A large number of business startups are expected to drive prices up in the South East as more people move to the region. Prices in these Berkshire towns are expected to increase by 4.54% a year, and 24.9% over five years.
16. Rushcliffe, East Midlands
This area near Nottingham is enjoying one of the highest rates of earnings growth in the East Midlands. As a result, a 4.65% annual increase in house prices is expected with prices up 25.5% by 2021.
15. Elmbridge, Surrey
House prices here are expected to rise by 4.79% a year thanks to increasing numbers of people moving to the area. Barclays forecasts that prices will have risen 26.4% by 2021.
14. East Dorset
The area around Wimbourne Minster is expected to enjoy annual house price growth of 4.96%, driven by an increase in new business startups bringing employment to the area, along with new residents. Prices could increase by 27.4% by 2021.
13. Waverley, Surrey
Encompassing the popular towns of Godalming, Farnham and Haslemere, this region is seeing an increase in people looking for rented property. As a result, yields are increasing, attracting buy-to-let investors. Prices are forecast to rise by 27.8% by 2021, or 5.03% a year.
12. Hertsmere, Hertfordshire
Close to London and popular with commuters, Hertsmere is expected to see significant increases. The area, which includes Potters Bar and Borehamwood, is expected to see a 28.1% increase in prices by 2021 — an annual increase of 5.08%.
11. South Northamptonshire
Barclays is forecasting that this area to the north-west of Milton Keynes will see the biggest property price rises in the East Midlands over the next five years at 29.3%. Prices are predicted to rise by 5.27% a year.
10. Warwick, Warwickshire
The average income here is 18% above the national average, which is forecast to help drive house prices up by 5.31% a year. That means that they'll be 29.5% higher than they are now by 2021.
9. Mole Valley, Surrey
House prices are expected to increase by 5.35% a year, the highest growth in the South East. Barclays predicts that house prices will be 29.8% higher by 2021, partly thanks to high business startup rates.
8. Uttlesford, Essex
House prices in this area, which includes the popular market town of Saffron Waldon, are expected to rise by 30% in 2021. Barclays predicts annual increases of 5.38%.
7. Wandsworth, London
This increasingly popular area in South London is forecast to see the highest price rises south of the river with annual increases of 5.56%, adding up to a 31.1% increase by 2021.
6. The Cotswolds
Covering parts of Gloucestershire, Oxfordshire, and four other counties, this beautiful rural region is forecast to enjoy annual house price rises of 5.67%. This means that prices will be up by 31.8% by 2021.
5. Westminster, London
Property prices in this Central London location are forecast to be up 31.9% by 2021, after average annual increases of 5.7%.
4. Camden, London
This borough is expected to see the biggest house price increases in north London over the next five years, up by 33.9%. Barclays predicts property will increase in value by 6.02% every year.
3. Three Rivers, Hertfordshire
Covering Rickmansworth, this area is popular with London commuters. Prices are forecast to rise by 6.12% annually, and be up 34.6% by 2021.
2. St Albans, Hertfordshire
This area is expected to see the second-highest price growth in the country thanks to forecasts of strong growth in average earnings that already sit 46% above the national average.
Property prices are expected to increase by 6.78% annually and 38.8% over five years.
1. Richmond upon Thames, London
A high employment rate and big earnings – 45.7% above the national average – plus its popularity amongst wealthy Londoners makes this Barclays' pick to enjoy the biggest house price growth over the next five years.
Property will be 39.1% more expensive in 2021 after annual growth of 6.82%, according to the Barclays UK Property Predictor.
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