See your total return — rental income plus capital appreciation — over a 1 to 30-year hold.
This tool is part of the Investor tier. £29/month with a 14-day free trial.
Sign up free, then upgrade →Garage capital growth has two components, each with very different drivers. Understanding the split changes how you think about location and timing.
The biggest historical driver of garage capital growth has been yield compression — buyers accepting lower yields, which mathematically pushes prices up. A garage bought on a 12% gross yield that gets resold on an 8% yield with the same rent will have grown 50% in price.
This was the story of the 2010s. Whether it continues depends on whether garage investing stays niche or goes mainstream. Mainstream interest will compress yields further; a recession would do the opposite.
Garages on plots large enough to redevelop benefit from underlying land appreciation. Some of the best UK garage investments have ended their lives as small-residential or self-storage plots. This optionality is essentially free if you can buy the garage at investor-yield prices.
For modelling purposes, 2-4% per year is a defensible base case for a typical garage. 5-7% is achievable in tight markets or where yield compression continues. Above that you are speculating.
Capital growth is the most uncertain assumption in property modelling. Use this tool to stress-test outcomes — model the same deal at 1%, 3%, and 5% growth and see if the deal still works at the bottom end.