UK House Prices Expected to Surge Over 23% by 2029
Driven by an ongoing year-on-year growth and increased housing affordability, Savills estimates that average property values in the UK will climb by £84,000 by the year of 2029.
The estate agency anticipates that house prices will increase by 4% by next year, followed by 5.5% in 2026, and then 5%, 4% and 3% in the continuing years. Accumulating a total growth of 23.4%. However, this may be different for the ‘new build’ sector.
Savills expect some current homeowners, to hold back with their house move until 2027 with the hope that interest rates will have settled down. This may mean a considerable increase in equity due to house growth.
First-time buyers may need to consider buying sooner, as waiting could mean facing potential higher prices. However, it is expected that activity will be below pre-pandemic levels, due to the lack of government support which is similar to ‘Help-To-Buy’.
For property investors, this forecast could offer promising prospects, although timing and strategy may be the key to maximizing potential profits, as the recent increase in second property surcharge could dampen the buy-to-let investor market.
Regional Differences
Markets in the North – where buyers with mortgages have less financial pressure – are projected to experience the fastest house price growth, estimated to reach between 28% and 29% by 2029.
So, homeowners in the Northwest are expected to lead the UK in property value increases, with home prices projected to rise by 29.4% by 2029. In the Northeast and Yorkshire, values are forecasted to climb by 28.2% and 26.4%, respectively.
Meanwhile, trailing behind other UK regions, the Southeast is predicted to see growth of 17.6%, with London close behind at 17.1%.
Lower levels of working from home will lead to a return to commuter hotspots that have assisted London over the 12 months and will continue in 2025. Beyond 2025, growth will largely hinge on affordability, with London and the Southeast likely needed to borrow a higher proportion of their income to keep up.
With a steady improvement in affordability over the next few years, it should allow house price growth to gain momentum. However, there will still be some bumpy roads along the way…
