Barclays have published some encouraging news if you own a property in the West Midlands.
A high employment rate coupled with job opportunities and a rise in business start-ups are driving up property prices in the West Midlands; the region is expecting a 1.15% average annual price increase 2017-2021.
This is the fifth highest increase across 12 UK regions.
The West Midlands is the second most populous county in England, home to the UK’s ‘second city’, Birmingham and other large cities including Coventry and Wolverhampton.
The largest upwards increase in average house prices is expected to occur in the following four districts:
The region has a high employment rate and high earnings rate, with average household incomes in Stratford-on-Avon and Wychavon being particularly strong – both indicators of future house price increases. Warwick has one of the highest earning rates in the region at 18% above the UK national average.
Warwick also has the highest level of business start-up rates per capita in the region (with 133.6 starts each year per 10,000 working age population), which further boosts growth of jobs and demand for housing in the area. Solihull, Warwick and Stratford-on-Avon all also enjoy high employment rates, which means greater prosperity and increased competition among buyers in the housing market.
A further indicator of demand for housing is the rate at which people commute in for work from neighbouring areas. In Solihull, 62% of workers travel in for work, which can be expected to drive up prices as they buy property closer to their workplace.
Overall, the employment opportunities in the West Midlands are driving up the demand for housing and increasing house prices. Strong employment growth, solid employment rate and opportunities for start-ups and commuters make it a popular place to purchase property.