The UK Property Market: Poised for Growth - Up to 29.4% by 2029

As the UK stabilizes post-pandemic, a notable shift in the property market is forecasted by leading advisor Savills, with property values predicted to rise by over 23% in the next five years. Here’s what investors should know about the forecasted trends and opportunities in the UK’s resilient housing market.

Key Highlights from Savills’ Latest Report:

a. National Growth: Average house prices are expected to grow by 4% in 2025, culminating in a total rise of 23.4% by 2029.
b. Regional Performance: Northern regions and Scotland are anticipated to outperform, with the North West set to achieve nearly 30% growth.
c. Economic Factors: A projected decrease in interest rates and inflation returning to around 2% signals a steady investment environment for buyers.

Regional Growth: Where to Invest

Savills highlights the North West as a top region, with forecasted price growth of 29.4%, followed closely by Yorkshire and the Humber and the North East. Affordable regions with relatively lower housing costs are set to see the highest gains due to increasing buyer demand.

Investment Potential and Market Stability

a. Easing Mortgage Rates: Savills forecasts the base rate to decrease to 2% by 2027, which will improve affordability and increase purchasing power among buyers.
b. Supply and Demand: With a limited housing supply and growing demand, investors are well-positioned to benefit from rising rental yields and price growth, particularly in high-demand regions.
c. Inflation-Protected Assets: Property remains a solid hedge against inflation, with real growth in house prices predicted to return to pre-pandemic levels.