New report predicts sizeable house price growth

November 14, 2024 by Mark

House Prices

The average price of a house in the UK is being forecast to increase by almost a quarter between now and the end of the decade, with the North being the area that sees the biggest rises.

This prediction comes from the estate agent Savills and it shows a rise of over 23% in prices between now and 2029. This would mean the average UK house price is £84,000 more by then than it is at the moment. Savills believes that the next few years will bring steady price growth, driven by greater affordability.

It expects to see growth of 4% during 2025 and then 5.5% for the next year. Then, it is forecasting a price growth of 5%, 4% and 3% during the last three years of the decade. That will amount to total growth of 23.4% across that five-year period.

Talking to Mortgage Solutions, the Savills residential research head, Lucian Cook, stated that:

“With less external noise, house prices in the medium term will be dictated by the fundamentals of demand, supply and affordability.“

He then went on to discuss the impact that rates have on buyer activity. Cook pointed out that reduced rates and mortgage costs per month were making prospective buyers feel more confident about entering the market. He concluded by saying that this would help to drive growth in prices over the next few years.

Mortgage advisors with CeMAP training will be hoping that house building increases too, as that will help to stop buyers being priced out of the market.