If you are investment planning in Cheshire or Shropshire, Savills has published its forecasts for UK house prices over the next five years.
These are predicted to rise on average by 22.2%. This estimate is subject to wide regional variations, and could be affected by consumer confidence and any changes to property taxation in the forthcoming Autumn Budget.
Since the 2008 financial crash, Land Registry data shows that house prices have risen by an average of 23.5% every five years. Prices are still rising in 2025, albeit at a less spectacular pace. Savills says it will be up 1% this year and then 2% in 2026. The property consultancy attributed this to weaker consumer confidence as well as broader economic concerns in the short term.
The average house price is now calculated at £359,875, a figure estimated to rise to £439,806 by 2030. Breaking the data down by region, Savills predicts that residential properties in the capital will rise the least over the next five years, going up by just 13.6%. The North West and Wales, on the other hand, will see house prices rise by 27.6% over the same period.
Property analysts had expected lower interest rates to drive borrowing and investment, but whilst inflation holds firm at 3.8%, economists do not anticipate future cuts by the Bank of England. House price growth for the time being is likely to be constrained by higher interest and mortgage rates, in addition to higher unemployment and lower wage growth.
