UK House Prices will Rise £61,500 in Next Five Years, predicts Savills

Savills forecasts a significant increase in UK house prices, with an average rise of £61,500 over the next five years. Stay informed on the latest trends in the property market.

UK House prices are set to soar over the next five years, with estate agent Savills predicting an average increase of £61,500. This revision comes after the company raised its forecast from six months ago. The average value of a home in Britain is expected to rise by 21.6 per cent by the end of 2028, up from the previous prediction of 17.9 per cent in November last year. Savills has also adjusted its annual forecast, now projecting a 2.5 per cent increase for 2024.

The initial expectation of a 3 per cent decline in house prices this year has been overturned by Savills due to a decrease in mortgage debt costs. The estate agent anticipates that housing transactions will reach 1.05 million in 2024, slightly higher than the 1.01 million forecasted at the end of last year. However, Savills warns that the housing market remains susceptible to fluctuations in debt costs and political uncertainty leading up to the General Election.

Affordability concerns are expected to arise towards the end of the five-year period, particularly in the already strained markets of London and the South East. While the overall increase in house prices is projected to exceed £60,000, regional variations are evident. Savills predicts a 28.8 per cent rise in the North West, while London is forecasted to experience a more modest 14.2 per cent increase over the next five years. Yorkshire and the Humber closely follow the North West with a 28.2 per cent growth rate. Wales and Scotland are also expected to see strong performance, with price growth estimated at around 26.4 per cent and 25.8 per cent, respectively.

Savills' upward revision of house price forecasts indicates a positive outlook for the UK property market over the next five years. While regional variations exist, overall growth is expected to be significant, with affordability concerns emerging towards the end of the period.