Property prices in London will continue to rise by as much as 11.88 per cent over the next five years, according to Barclays UK Property Indicator report.
The report, which shows an average of how much properties will increase by in 2022, reveals Richmond as the number one city hot spot.
Barclays adds that investors will be key to driving the rise in house prices in the capital.
The east of England will grow by 9.38 per cent, according to the report, followed by the south east (8.74 per cent) and the East Midlands (6.67 per cent). Scotland and the West Midlands are both predicted to see prices rise by 5.88 per cent.
Barclays also backs the north of England as the next property hotspot, due to rising employment opportunities and attractive business start-up rates when compared to central London hubs. It found that 38 per cent of high net worth (NHW) investors planned to purchase properties in northern regions predicting a future price hike and rental opportunities.
The report also looks at investor habits of the young and old.
It found that millennial investors favour property compared to older peers, with an average of 41 per cent of their portfolio tied up in property, compared to 23 per cent in over 55s.
Correspondingly, 48 per cent of young investors’ income is generated through rent.
Dena Brumpton, chief executive officer of Wealth and Investments at Barclays, said: “It’s encouraging to see that property is still viewed as an important part of the investment portfolio with high net worth investors typically owning three properties and over a quarter planning to buy property because they believe that it offers long term investment security.
“There is also increasing confidence among property investors, as many are taking a long-term view when it comes to putting money into property.
“It’s also interesting to see from our research how investment prospects are emerging outside of the established property heartland of London and the South of England, with economic growth and employment opportunity fuelling growth in hotspots across the UK.”
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