UK House Prices Set to Surge by 25% in the Next Five Years
Estate agency Savills has made a bold prediction, forecasting that house prices in the UK will rise by an impressive 25% over the next five years. This increase is expected to start with a solid 4% growth in 2025, followed by a staggering rise of 23.4%—or approximately £84,000—by 2029.
Future property prices are on the rise as confidence grows.
Savills attributes this upward trend to a combination of factors, notably a return to inflation-adjusted house prices that were prevalent before the unsettling mini-budget of 2022. The continued decline in mortgage rates has also played a pivotal role in rekindling buyer confidence and enhancing market activity.
“With less external noise, house prices in the medium term will be dictated by the fundamentals of demand, supply and affordability,” notes Lucian Cook, head of residential research at Savills.
As the housing market stabilizes, it appears that regions in the North of England are on track to experience the most significant growth. The forecast indicates a potential price increase between 28% and 29% for homeowners in these areas by 2029. This is especially promising for mortgaged buyers who are feeling less economic strain compared to their counterparts in other regions.
In contrasting information, recent data from Rightmove revealed that the average asking price for properties has slightly risen to £371,958. Yet, it is important to understand that this modest growth comes amid what can only be described as an explosion of buyer choice, with options available at levels not seen since 2014. Tim Bannister, the director of property science at Rightmove, comments, “October’s subdued price growth comes as buyer choice soars to a level not seen since 2014.”
As we move forward into a market that’s showing signs of recovery, concerns arise following Chancellor Rachel Reeves’ upcoming Budget announcement, scheduled for October 30. The implications of Labour’s policies could have ripple effects across the already shifting property market. Investors and homeowners alike are left questioning how potential changes could impact their ability to partake in this predicted property boom.
In conclusion, while the forecast appears optimistic for the housing sector, it’s crucial for buyers and investors to remain vigilant. The predicted 25% rise in house prices over the next five years presents both opportunities and challenges. Prospective homebuyers may want to take action sooner rather than later to avoid missing out on what could soon become unattainable pricing levels. As developments unfold, we at MortgageWatch will continue to provide timely updates and expert analysis to help our readers navigate the evolving landscape of the UK mortgage market.
Keeping an eye on market trends can provide valuable insights.
