Where are UK property prices heading?

April 9, 2021

Owning a buy-to-let property isn’t just about yields; understanding the potential for capital growth is also a key part of any property investment strategy. 

So, what do the experts say about property prices (and rental values) in the UK? Where are they heading over the coming years and which regions are going to be the stars of the show? Read on to find out… 

Looking ahead to 2025

When it comes to mainstream capital value forecasts, Savills provides one of the most trusted projections in the industry. Revised twice every year, the company’s forecasts are based on a wide range of factors, including recent and historic transaction levels, economic projections, political factors, market trends and more. 

The most recent projections were released in March 2021, with Savills commenting: 

“2021 will be a complex year, with competing forces having different impacts on the housing market over the course of the year. But government support, the easing of social distancing restrictions, and low interest rates underpin our forecast for 4.0% price growth.”

That 4.0% growth sets the tone for the years to come, with Savills projecting it will increase to 5.0% in 2022. Overall, in the five years to 2025, the company forecasts mainstream capital value growth of 21.1% for the UK as a whole.  

The North West tops the table – again 

At a regional level, that growth will vary significantly over the years ahead. Topping the chart is the North West. The third most populous region in the UK and home to cities including Manchester, Liverpool and Preston (home to the stunning Bishopgate Gardens apartments), the North West is forecast to see growth of 28.8% between now and 2025. 

“Many investors have been opting for buy-to-let properties in the North West for some time now, as the region has established credentials in terms of its property market performance and wider economic backdrop. A centre for industry and dynamic growth, the North West has plenty to offer investors looking for good value, strong capital growth and solid yields.”

Dale Anderson, Managing Director, Fabrik Invest

Also worth a mention is the Yorkshire and the Humber region, for which Savills projects growth of 28.2% over the coming five years. It is here that Fabrik’s Icona development has been attracting investors with an eye on exceptional capital growth potential, as well as healthy yields. 

Speaking of yields…

Savills has also included mainstream rental values in its latest five-year forecast. While UK rents are forecast to rise by just 0.8% in 2021, the pace picks up significantly in 2022, when a rise of 4.5% is anticipated. 

Looking at the longer-term picture, Savills projects that rents across the UK will increase by an average of 17.0% in the five years to 2025. 

What has happened so far in 2021?

 We’re already a quarter of the way through 2021. That means that figures are available to show how the UK property market has been performing so far this year. 

Nationwide’s latest figures show annual house price growth of 5.7% in the year to March 2021. Again, we see the North West leading the pack, with price growth of 8.2% over the same period. 

“Regional variations in house price growth show the value of doing your homework and identifying the best UK region to focus on as part of your investment strategy. All indicators are undoubtedly pointing to the North West right now.”

Dale Anderson, Managing Director, Fabrik Invest

To find out more, call Fabrik Invest on 020 8175 9891, email enquiries@fabrikinvest.com or visit www.fabrikinvest.com.

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Wayne Venter

International Business Development Manager

Wayne has been in the property industry for over 17 years. He started out selling residential properties in the northern suburbs of Sandton, South Africa, for one of the bigger real estate brands, before moving to a boutique, Johannesburg-based property developer. He worked at a senior level, specialising in residential developments on the north coast of KZN and various other areas of Northern Johannesburg.

Wayne moved to selling luxury, free standing homes and apartments in Sandton, Johannesburg in 2006, having joined the Country’s leading real estate brand and within six months was leading the team. In 2008, he began to focus exclusively on the luxury apartments in central Sandton, priced from approximately R2 million to R60 million. Over the years, he has also added commercial property sales and rentals to his repertoire, as well as building his own investment property portfolio between 2011 and 2018.

By 2018, realising where the South African property market was headed, he sold out of his investment property portfolio to de-risk and went looking for a real estate company to buy into. South Africa’s property market was extremely volatile at that time, so Wayne took the initiative and moved to London to work in property in the UK.

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Edward Snell

Senior Property Consultant

I live in Spanish countryside with my wife and our 11 rescue dogs.

Originally from Bedford, I have two sons, two step children & 6 grandchildren.

I have a keen interest in property investment and over the years have built up a personal portfolio for the purposes of rental income and capital growth.

I have over 20 years’ experience in property investment, both in the UK & overseas.

My other interests include animal welfare, football, motorsports, travel and music

My personality is of an even temperament and I enjoy the cut and thrust of doing deals.
I am happy and successful in what I do & take great pleasure in providing my clients with successful outcomes.

I’m a good team player but work well as an individual.

Daniel Harburn

Property Sales Consultant

Daniel had a passion for property from a young age so he began his working life by undertaking a plumbing apprenticeship for a large well known UK developer to pursue a career in construction. After qualifying he soon realised that building relationships was a preferred skill of his due to his loyal and trusting nature.

From then on Daniel launched his career in sales where he worked his way to to a high performing sales person at a creative media company. Part of Daniels success in accumulating clients over the last 10 years is put down to his diligence in customer experience.

Daniel has a keen interest in golf and also in keeping himself fit which is essential as he and his fiancé have 4 year old twins, Jacob and Sofia who keep them both on their toes.

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