Research reveals that property in Yorkshire and the Humber will average 8.74% price increase by 2021

New research released today, the Barclays UK Property Predictor, provides a three-to-five year forecast of investment hotspots on the residential property market, revealing the areas across the UK where house prices and rental incomes are expected to rise.

The research, by Barclays Wealth & Investments, uses factors including rental trends, employment levels and commuter behaviour as well as current house prices to create an index of property hotspots.

According to the research, and despite an uncertain economic and political climate, the UK property market remains buoyant with prices in Yorkshire and the Humber set to rise by an average of 3.6% by 2021.

Yorkshire and the Humber offers investors a varied landscape, from seaside towns like Scarborough and Whitby to the industrial ports of Hull and Grimsby, plus lively cities like Leeds, Sheffield and York, as well as the stunning moors and dales. It is predicted to see a 3.6% average annual price increase over the next five years.

Spa town Harrogate is predicted to see the region’s largest property price increases at 13.3% by 2021. It 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. It also has one of the highest current employment rates of any local authority area in the region (84.7%), meaning that average household incomes in the region are particularly strong.

The second fastest growing property hotspot is Selby, which the research predicts will see average prices increase 12.3% over the next five years. It also has a high employment rate, with 87.2% of its population in work. In third place is Craven which will see 11% average property prices increases, followed by Hambleton, which is expected to see prices go up 10.1% by 2021.

The research also surveyed high net worth investors in Yorkshire and The Humber and the neighbouring North East to reveal the size of their property portfolios and plans for future investments.

Investors from Yorkshire and the Humber and the North East 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 (34%) 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 6.9% over the next three to five years.

Across all respondents, more than one in 10 (12%) own property/properties in Yorkshire and the Humber and the North East, with almost half of these (48%) being used to generate rental income.

Martin Cuthbert, Regional Director, Barclays Wealth and Investments, Yorkshire region, said: “There are already many reasons to live in Yorkshire and the Humber, 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.”

RegionExpected average annual increase (%)Overall % increase (2017-2021)London2.27%11.88%East of England1.81%9.38%South East1.69%8.74%East Midlands1.30%6.67%West Midlands1.15%5.88%Scotland1.15%5.88%South West1.04%5.31%North East0.88%4.48%North West0.79%4.01%Yorkshire and The Humber0.71%3.60%Northern Ireland0.60%3.04%Wales0.57%2.88%

The average overall UK price increase over the 2017-2021 period is expected to be 1.31% per annum. The overall increase expected over the 2017-2021 period is expected to be 6.1%.

Current UK average house price is £274,000 (Source: Barclays Local Insights). Based on an expected increase of 6.1%, by 2021 the average value of a UK house will be nearly £300k (£290, 714).