House prices in Monmouthshire house prices are set to rise 13 per cent by 2021, according to research from the Barclays UK Property Predictor.

The 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.

It has found that prices in Wales are set to rise by an average of 2.88 per cent, with Monmouthshire having the highest rise.

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, by Barclays Wealth & Investments, also surveyed high net worth investors from across the UK, to reveal where and why they plan to purchase property in the future.

The largest increase in average house prices in Wales is expected to occur in Monmouthshire, The Vale of Glamorgan and in the Welsh capital, Cardiff, due to the rising employment rates in these areas.

Monmouthshire has one of the highest current employment rates of any local authority area in Wales (76.9 per cent), meaning that average household incomes in the area are particularly strong, fuelling the pressure for future house price increases.

Cardiff is expected to experience one of the highest levels of short-to-medium term employment growth in the country over the 2017-2021 period (with growth of around 1.5 per cent), which will place additional demand for housing in the area and push up property prices.

Another key indicator of housing demand, impacting prices, is residential property rates.

Monmouthshire and Cardiff have experienced a high rate of growth in private housing market rental levels, indicating the likelihood of increasing demand for house prices in the area.

Eileen Cronin, regional director, Barclays Wealth and Investments, Wales, said: “There are already a hundred reasons to live in Wales. With more than 1,680 miles of coastline, mountains and national parks, Wales offers spectacular natural beauty, as well as a thriving centre of employment and culture in its capital city, Cardiff. 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 country’s attractiveness.”