UK Housing Market Forecast Revised Upwards

Savills has revised its five-year forecast for the UK mainstream housing market, projecting stronger price growth than previously anticipated. 

The key points from the updated forecast are: 

- UK mainstream house prices are now expected to rise by 13.1% over the next five years, up from the previous forecast of 10.5%. 

- This upward revision is driven by continued robust demand, limited supply of new homes, and an improving economic outlook with falling inflation and mortgage rates. 

- Price growth is forecast to be strongest in the North West (17.9%) and Yorkshire & Humber (16.8%) over the next five years, as buyers seek better value outside of London and the South East. 

- However, London is also expected to see a bounce back in price growth, with a projected 12.8% increase by 2028 as affordability constraints ease. 

- Rental value growth forecasts have also been revised up, with rents across the UK expected to rise by 16.2% over the next five years, led by the East of England (19.4%) and South East (18.9%). 

The report highlights the continued resilience and demand in the UK housing market, despite recent economic headwinds. With affordability improving and the outlook brightening, Savills expects the mainstream market to regain momentum in the coming years. 

For expats and overseas buyers considering a UK mortgage, International Mortgage Solutions is here to help. Visit mortgageims.com to book an appointment. 

Source: https://www.savills.co.uk/research_articles/229130/359399-0