The London property market will remain stable for the next five years with an appreciation in the capital values of the assets in double digits till 2021, according to new research.

Barclays

Between 2017 and 2021, the prices of residential properties in the capital are expected to increase by nearly 12 per cent, and it means that investors’ interests are protected because of the strong fundamentals of London’s real estate.

The Barclays UK Property Predictor released recently indicates a stable residential property market in the UK. This comes as a major relief, especially in the wake of the developments witnessed in 2016 in the UK. In fact, the property prices are expected to rise in the UK real estate markets. It is revealed that the property prices across the country will rise by 6.1 per cent in the next five years, bringing the average property value to almost £300,000.

“Despite an uncertain economic and political climate, the UK property market remains buoyant with prices in areas across the UK set to rise,” the research report from Barclays, says. The research uses factors including rental trends, employment levels and commuter behaviour as well as current house prices to create an index of property hotspots. The research also surveyed high net worth investors from across the UK, to reveal where and why they plan to purchase property in the future.

The South is expected to see the largest annual property price increase between 2017-2021, however, property investors are looking north of the property hubs of London and the South East for substantial value for money and income stability.

It is interesting to note that investors are leveraging buy-to-let options to fuel their property portfolios, despite the recent changes to buy-to-let tax. Higher value investors are seeking to maximise returns through property purchases, with nearly two-thirds (65 per cent) of those looking to buy doing so for rental income. Around 62 per cent of those with rental properties expect the proportion of the income they receive from rent to increase over the next three-to-five years, with half predicting it will rise by up to 20 per cent.

The research reveals that younger HNWIs will be a key driver in the growth of the UK property market over the next three-to-five years. The millennial investors surveyed have 41 per cent of their investment portfolio tied up in property, compared to 23 per cent amongst those aged over 55. The Barclays UK Property Predictor reveals an increasing confidence among property investors, as many are taking a long-term view when it comes to putting money into property.

Strawberry Star has several interesting property investment options in London and they offer appreciation in capital values as well as rental income. If you are keen on acquiring a residential property in London, connect with our estate agents by calling any of our global offices.

Source: Newsroom.Barclays.com