Property prices in the UK are expected to increase by 6.1% in the next five years, bringing the average property value to around £300,000, according to a research by Barclays.

House prices are expected to increase the most in the South, though high net worth investors (HNWI) were also found keen to invest north of the property hubs of London and the South East, the Barclays UK Property Predictor revealed.

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Nearly 38% of the respondents said that they plan to invest in property in the northern regions as they expect house prices to rise in the region, while 27% attributed their decision to prospects of strong rental income.

London was expected to record the highest rise in property prices, followed by East of England and the South East. Among the regions projecting rise in house prices, the Midlands took the fourth spot and Scotland the fifth spot.

The study unveiled younger HNWIs to be a major driving force in the growth of the property market in the UK, with 41% of their investment portfolio held in property compared to 23% among those aged over 55 years.

Also, 75% of the younger investors were found to be keener in increasing their property portfolio over the next three-to-five years as against 10% of their older counterparts who planned to do the same, the report noted.

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Around two-thirds of the respondents said they are planning to buy property for rental income.

Barclays Wealth & Investments CEO Dena Brumpton 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.”