The UK housing market is expected to see significant price increases over the next five years, according to a report from Savills. The forecast predicts an average price rise of £80,000 (US$104,187) by 2028, with prices increasing by 22.2% in total.
Economists attribute this growth to higher interest rates and inflation, which are expected to slow down in the coming years. However, these changes may not have a significant impact on the housing market until later, around 2026-2028.
The UK’s economy is expected to grow stronger past 2026, driven by low inflation, rising GDP growth, and falling unemployment. This will put upward pressure on real prices, leading to a peak in price growth between 2028 and 2029.
Regional performance varies across the country, with more affordable regions experiencing higher rates of price growth. For example, home prices in the North West are forecast to be 15% below the UK average by 2030, while London prices will be 33% higher than the national average.
Savills’ head of residential research notes that regional performance is influenced by the housing market cycle, with more affordable regions outperforming the UK average. The strongest growth is expected to occur in late-stage markets in the North East, Scotland, and Wales.
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Source: https://www.mansionglobal.com/articles/u-k-home-prices-predicted-to-rise-by-more-than-22-over-the-next-5-years-abf2b4d9