Exciting news awaits UK property investors as a new forecast from Savills estate agent predicts a substantial rise in average house prices by 2028. According to their analysis, the average UK house price is expected to surge by £61,500, marking a significant increase of 21.6% from £285,000 in 2023 to £346,500 by 2028.
Savills attributes this upward revision to an improved medium-term economic outlook, surpassing their previous forecast of a 17.9% increase. Despite short-term uncertainties, including fluctuating interest rates and political dynamics, the housing market is poised for growth.
Lucian Cook, Head of Residential Research at Savills, provided insights into the forecast, stating, "The outlook for 2024 has brightened compared to our previous forecasts, with mortgage costs stabilising and showing less volatility. Additionally, improved prospects for economic growth indicate relatively modest house price growth this year, with greater potential in the following years."
However, Cook cautioned against global uncertainties impacting mortgage rates, which lenders use to price mortgages. He emphasised the likelihood of short-term fluctuations in both debt costs and house prices.
Savills conducted their analysis using data from Oxford Economics and Nationwide Building Society, focusing on the second-hand property market. It's important to note that new build property values may exhibit different performance trajectories.
Highlighting regional insights, Savills outlined their predictions for house price growth across different UK regions over the five years leading to 2028:
| North West | 28.8% |
| Yorkshire and the Humber | 28.2% |
| Wales | 26.4% |
| Scotland | 25.8% |
| North East | 25.2% |
| West Midlands | 23.4% |
| East Midlands | 22.8% |
| South West | 18.7% |
| South East | 18.2% |
| East of England | 18.1% |
| London | 14.2% |
With promising forecasts for UK house price growth, savvy investors have a compelling opportunity to capitalise on the evolving dynamics of the property market, setting the stage for lucrative investment ventures in the years to come.