Savills has released its latest forecasts for the UK housing market, signalling that house prices will continue to rise over the next five years, though the growth is expected to remain moderate.
The estate agency predicts that, on average, home values across the country will increase by around 22.2% between now and 2030. This forecast is based on economic modelling from Oxford Economics and Nationwide data, focused primarily on the second-hand housing market rather than new-build properties.
However, the growth is unlikely to be evenly spread across the country. Some regions are projected to see significantly higher gains of almost 29%, while others, including London, are expected to experience more modest rises of less than 14%.
Looking back, the UK housing market has experienced periods of volatility. Following the 2008 financial crash, house prices bottomed out in March 2009. Over the subsequent five years, prices gradually recovered, rising by 17.4% by 2014.
Since that time, average house price growth over five-year periods has varied, often between 16% and 32%. Between 2012 and 2017, prices surged by 32%, whereas growth from 2010 to 2015 was slower at 16.5%, reflecting broader economic conditions and varying levels of buyer confidence.
Savills emphasises that near-term growth is likely to be constrained by cautious buyer sentiment and ongoing concerns about the broader economy. Any changes to property taxes or housing policy announced in the upcoming Budget could also influence the market, either boosting or limiting price movement.
For 2025, house prices are forecast to increase by only around 1% by the end of the year, reflecting the subdued activity seen so far. The following year, 2026, is expected to see a slightly stronger rise of 2%, as the market remains cautious but begins to stabilise.
Beyond 2026, Savills predicts a gradual acceleration in house price growth. Prices are expected to rise by 4% in 2027 and 5% in 2028, signalling a slow recovery in buyer demand and confidence as economic conditions improve.
The agency stresses that these forecasts focus on the mainstream market, largely composed of second-hand homes purchased with mortgage finance, rather than newly built properties. Currently, the average UK house is valued at £359,875, and by 2030, Savills expects this to rise to £439,806, representing an approximate £80,000 increase.
The housing market in 2025 has been subdued, with a large number of homes on sale relative to buyer demand, creating a buyer’s market. This imbalance has limited upward pressure on prices, keeping growth slow for much of the year.
Lucian Cook, Savills’ head of residential research, notes that previous forecasts assumed that falling interest rates would support borrowing, stimulate investment, and encourage house price growth. However, inflation remains relatively high at 3.8%, slowing the expected pace of rate reductions and tempering market optimism.
Higher interest and mortgage rates, combined with a slightly weaker labour market, rising unemployment, and slower wage growth, are likely to keep price growth limited in the near term. Meanwhile, the Budget continues to weigh on the market, with potential adjustments to transactional or broader taxes affecting buyers’ purchasing capacity.
Looking further ahead, Savills is more optimistic, citing lower inflation, rising GDP, falling unemployment, and a continuing undersupply of new homes as factors that will drive real-term house price growth from 2028 onwards. This would mark the first period of notable real growth since the end of 2022.
Interest rates are assumed to fall gradually over the next few years: 3.5% in 2026, 3% in 2027, and eventually 2.5% by 2029. These assumptions, combined with projected economic recovery, underpin Savills’ forecasts for more robust house price growth towards the end of the decade.
Regionally, London is expected to experience the slowest growth over the next five years, with prices projected to rise by just 13.6% by 2030. In contrast, more affordable regions in the North of England and Scotland are forecast to outperform the UK average. The North East, Yorkshire, and The Humber are expected to see rises of nearly 29%.
Other regions set to see above-average growth include Scotland, Wales, and the North West, all forecast to achieve around 27.6% increases, while the West Midlands and East Midlands are projected to rise by roughly 24–25%. Savills notes that these patterns reflect the current stage of the housing cycle, where late-stage markets in the North and Scotland outperform the more saturated markets of London and the South.
By 2030, house prices in the North West are expected to sit just 15% below the UK average, narrowing the gap from nearly 30% a decade earlier. Meanwhile, London prices, while still above the national average, are forecast to be 33% higher than average, down from 70% in 2017, signalling a shift in regional performance.
Overall, Savills’ forecast paints a picture of a UK housing market that is stabilising after a period of uncertainty, with modest near-term growth followed by stronger recovery in the latter half of the decade. Regional differences are expected to persist, reflecting affordability, market cycles, and economic factors.
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