Is now the time to invest? Property prices set to grow over the next 5 years

s now the time to invest? Property prices set to grow over the next 5 years

Choosing the right time to invest in property, whether you intend to let it out to a tenant or move into it yourself, is they key to making your venture worthwhile. Putting your money into a house, flat or other asset at a time when the market is on the up can lead to great capital returns over a number of years. 

So is now the right time to put your money into the sector? According to newly published predictions for the future of the sector, the answer seems to be yes, with the property sector growing over the next few years and prices set to climb time and again. 

According to the data from Rightmove, the average cost of purchasing a home is likely to increase by 30 per cent over the course of the next five years alone. This comes despite predictions that 2015 will see price rises start to slow a little. 

For those investing, the best place to put their money will be the south of England, where rises are set to be far more substantial than elsewhere, reinforcing the idea of a north-south divide once more. 

Rightmove reported that in the next five years, the price of purchasing in London will climb by some 33 per cent. However, this will not be the best growth seen, which is perhaps surprising given the way London has streaked ahead of the regions ever since the financial crisis of 2008. 

By 2019, prices in the south-east of the country will have climbed by some 37 per cent compared to where they are at the moment, leaving those who bought property in 2014 with a very impressive rate of capital return and a strong profit. 

And it's even better in other areas, all of which are in touching distance of London. This can make investment in these places a fantastic future venture, especially for those who want to rent properties out to commuters. 

In Southampton, for example, the cost of buying will climb by a rate of 43 per cent in the next five years. In both Luton and Brighton, prices will increase by 41 per cent, which again makes them fantastic places to invest. 

"Understanding the path of future house price growth is a key element of UK economic strategy and decision making, and our data driven forecasts contain insight not previously available from other commentators or the government’s own forecasts produced by the Office for Budget Responsibility," said Miles Shipside, Rightmove director and housing market analyst.