Predictions for house price growth
- TNJ Mortgages
- 3 days ago
- 1 min read
The report predicts that house price growth will be subdued in the short term, with the average home expected to rise in value by just 1.0% in 2025 and 2.0% in 2026. This slow pace is due to ongoing uncertainty about the economy and weak demand from buyers.
However, the landscape is expected to gradually improve as interest and mortgage rates ease. Savills predicts house price growth of 4% in 2027 and 5% in 2028, with a peak of 5.5% in 2029. Across the five-year period, property values are anticipated to rise by a total of 22.2%.
Regional forecasts
Regional variations in house price growth are expected to persist. The strongest growth is forecast in the North East, and Yorkshire and the Humber, where prices are predicted to rise by 28.8% by 2030. On the other hand, weaker growth is expected in London and the South of England, where houses are less affordable. In the capital, home values are only expected to increase by 13.6% over the next five years.
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