A recent trend has shown that capital value growth is stronger in the North than in the South.
According to Savills’ property report, this is likely to continue, with the North East, Wales, the North West, and Scotland all outperforming more southern regions with over 20% compound growth over 5 years to 2028.
| North East | Wales | North West | Scotland | South East | London | |
|---|---|---|---|---|---|---|
| Mainstream Capital Value Forecast – 5 Years to 2028 | 21.40% | 21.40% | 20.20% | 20.20% | 16.70% | 13.90% |
Source: Savills Residential Market Forecast, Nov 2023
At the bottom of the table, Savills believes London properties will see 13.9% capital value growth leading up to 2028, which, whilst still an optimistic projection, means that capital is likely to see less growth compared to more affordable regions. Read the latest London property investment guide for more indepth knowledge.
Overall, these figures show more promise than the forecast for last year, in which the most optimistic-looking regions, such as the North West, were predicted to hit 11.7% growth by 2027.
This figure has risen to 20.2%, showing that the current subdued property market is not predicted to continue in the next 5 years.
In 2023 and 2023, property prices will likely remain low in the short term, making now a good time to invest to see more capital growth over the next few years.
