What Will My Home Be Worth In 5 Years?

What Will My Home Be Worth in 5 Years? Before you decide to sell, you need to know this. House prices have decreased by 4.6% YonY according to Zoopla statistics. You should ignore this however. Why? The 5-year average is more important.

In the UK, the 5-year average has increased by 17.3%. Yes, on average your house will be worth 17.3% more that 5 years ago.

Unless you’re someone that flips houses for a living, it’s likely you’ve been in your house for 5+ years. Infact the UK average is 10 years. And that means on average your house price would have increased by 73%!

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This isn’t the end of the story however. Let’s dive into the factors that will be influencing your house price.

1. Area. Each area of the UK and each town within an area varies depending on its popularity at that particular time. According to Rightmove the biggest increase in property prices in the past year is in the North West (2.5% increase). The lowest is the South East, which has dropped by -2.8% YonY. Checking Rightmove and your area can really help you understand the average house price fluctuation of your area. Please be aware there lags by 9 months however.

2. Maintenance. Have you maintained your house to a good standard over the past 5 years. Small, consistent updates and fixes really help to maintain a steady increase in your house price. Think about Paint, Kerb appeal, damp, floors, wear and tear. The appearance of your house can make a 10% swing in your value.

3. Renovations. Adding square footage to your property is the easiest way to increase your overall house price. This is (typically) the biggest consideration when a valuer is asses the value of your house. If you’re added extra room, excellent. Look for comparable square footage on Rightmove/Zoopla to see how much your house has increase in value.

4. Trends. Updating your house with the latest home buyer trends gives you an obvious advantage vs any other house on the market. Some key trends currently include a downstairs bathroom, a garden room, a laundry room, kitchens (these are always on trend) and energy efficiency.

5. Catchment Area. Catchment areas are often updated and can change from year to year. Families are very focused on moving to areas and locations where their children will get into the best schools. Check your school catchment area, if you’re near a good school it will almost certainly help your house price and ability to sell quickly. Especially in that spring/summer market.

Always Inspect your home, council and school district, the house price index and rightmove/zoopla to get a better understanding of how much your house’s value has increased over the past 5 years. These are the key factors in your home's value.

Last thing from us. There’s a shortage of homes in the UK and over the long/medium horizon (5-10-15-20 years) property prices have been shown to increase consistently. That said, they fluctuate according to our 5 points.

So, when you're buying a house and asking, 'What Will My Home Be Worth In 5 Years?' The statistics show that over the long term, your house will increase in value. If you focus on the 5 factors laid out when buying and owning a house you'll see a further increase above average.

Book a Valuation with our expert team if you want to get the most accurate value for your home