Capital Growth
Increase in property value over time
Full Definition
Capital growth refers to the increase in a property's market value over time. UK property has historically appreciated around 3-5% annually, though this varies significantly by location and market conditions. Capital growth is a key component of total return alongside rental income. Areas with strong economic growth, infrastructure investment, and housing shortages typically see higher capital appreciation.
Related Terms
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Analyse a PropertyMore Investment Metrics Terms
ROI (Return on Investment)
The percentage return on your property investment
Gross Yield
Annual rental income as a percentage of property price
Net Yield
Annual profit after expenses as a percentage of property price
Cash-on-Cash Return
Annual cash flow relative to cash invested
Void Allowance
Budget set aside for empty periods