How Much Will Your Investment Property Be Worth in Five Years?

If you have purchased an investment property in recent years, you may be wondering the all-important question of how much your property may be worth further down the line?

Even if you’re currently just toying with the idea of investing in property and haven’t yet committed to making a purchase, knowing whether your property investment venture is likely to grow in value is crucial.

The good news is, if you’re investing, or have invested, in an investment property in the UK, you’ll be pleased to know that every region is expecting some level of house price growth.

To help you get a better idea of how much capital growth you could expect from your investment property, we’ve put together this blog post.

With information from the Savills residential property market forecast, we’ve outlined how much properties in different UK regions could be worth in five years.

If we’re looking at five-year property growth on a more national scale, then average UK house prices are set to increase in value by around 6.2% by 2027.

The different regions, including Scotland and Wales, have varying predicted growth rates, some of which are significantly higher than the UK’s average figure.

Let’s get into these predicted growth rates for the different UK regions.

If you’ve invested in the North West region, you’re in for a lucrative investment.

Why?

Well, according to Savills, the North West is expecting the highest capital growth of any region, with an 11.7% growth rate.

Cities in the North West like Manchester and Liverpool are considered property investment hotspots, and this is part of the reason why.

The same goes for Yorkshire and the Humber, which expects the same level of capital appreciation over the same period.

If you invest in the North West or Yorkshire and the Humber, here’s an example of your potential capital growth by 2027:

Initial property price: £150,000

Potential property price in five years: £167,550

Not too far behind the North West and Yorkshire and the Humber is Wales.

Here, property prices are estimated to have grown by 11.1% by 2027. If you’re interested in an investment in Wales and want to ensure you make capital growth returns on your venture, Wales is a good choice.

If you invest in Wales, here’s an example of your potential capital growth by 2027:

Initial property price: £150,000

Potential property price in five years: £166,650

The North East region, home to Newcastle, is another region that ranks highly in Savills’ report.

Property in the North East is again set to rise by an average of 11.7% by 2027, highlighting an attractive five-year growth rate for those investing in the area.

While not as impressive as the returns you could get in the North West, Yorkshire and the Humber, and Wales, this is still a desirable option.

If you invest in the North East, here’s an example of your potential capital growth by 2027:

Initial property price: £150,000

Potential property price in five years: £176,400

Home to popular UK cities, including Birmingham and Nottingham, the Midlands regions have growth predictions higher than the UK average but lower than other more Northern regions.

Savills predicts an average growth of 8.9% for the East and West Midlands regions by 2027.

If you invest in the East/West Midlands, here’s an example of your potential capital growth by 2027:

Initial property price: £150,000

Potential property price in five years: £163350

As we venture further down South, predicted growth rates get gradually lower.

This doesn’t come as much of a surprise.

The North Vs South divide has been clear for a long time in the UK, with more attractive buy to let opportunities and greater returns available in Northern cities like Liverpool and Manchester.

As such:

Property prices in the South West are expecting five-year capital growth of 6.2%.

While still a reasonable growth rate, you can expect higher capital appreciation elsewhere in the UK.

If you invest in the South West, here’s an example of your potential capital growth by 2027:

Initial property price: £150,000

Potential property price in five years: £159,300

In the UK’s South East region and the East of England, average house prices are set to grow by 3% on average.

Several more expensive areas reside in these regions, including Oxford and Brighton. This makes them less appealing to investors who want a low-cost venture with high return potential.

There are, however, more affordable towns and cities in these regions.

Some up and coming areas are gaining attention from investors who want to buy property on the London commuter belt. A perfect example is Slough property investment, which offers some lucrative opportunities.

If you invest in the South East or East of England, here’s an example of your potential capital growth by 2027:

Initial property price: £150,000

Potential property price in five years: £154,500

Finally, we move on to the English capital, London.  

Average property prices in London are expected to see the lowest prediction compared to every other UK region. 

A -1.7% negative capital growth rate is predicted for London property by 2027.  

If you’ve already purchased a property in London, and you were thinking of exiting your investment in five years time, you’d be best advised to wait a little longer in the hope of improved growth over the coming years.  

And if you are considering making a London investment in 2023, you may want to explore one of the alternative regions listed in this guide to get the most out of your venture. 

If you invest in the South East or East of England, here’s an example of your potential capital growth by 2027: 

Initial property price: £150,000 

Potential property price in five years: £147,450 

To explore property investment opportunities in some of the UK’s best cities and towns for capital growth, check out our current listings in cities like Manchester and Liverpool today.

If you have questions about any of the information covered in this guide or want to enquire about a particular development, you can chat with one of our agents. We’d love to hear from you!

Disclaimer: Please keep in mind that the figures in this article are purely based on housing market predictions and provide only an estimate for five-year housing market growth.

This blog post was updated in June 2023. Market predictions may have changed depending on the date you read this article.