Average UK house price growth expected to slow over next 5 years says Savills

A recent research report from Savills the International Real Estate Adviser reveals that:  Average UK house price growth is expected to slow to 14 per cent over the next five years, but there will be marked differences between and within regions. In their key numbers section they mention, 2018-2022 average UK house price growth forecast to total +14%, range to be +18.1% in North West to +7.1% as a London average.

The report published on the same day that the Bank of England announced an increase in interest rate to 0.5% mentions that: UK house price growth is expected to slow next year as uncertainty weighs on sentiment. A return to growth is expected in 2019-20, assuming employment, wage and GDP growth swing back towards trend levels, though this will be tempered by interest rate rises.

Lucian Cook, Savills head of residential research said:

“Uncertainty over what Brexit means for the UK economy and how it will impact household finances will increasingly act as a drag on house prices.

“There is capacity for growth once we have greater clarity, but this will be constrained by rate rises and the corresponding ability to get mortgage debt, particularly in London and other higher value locations.

“Mortgage regulation, introduced in 2014, is likely to show its hand as interest rates rise.  But by restricting the amount people can borrow, it will take the heat out of the market and so reduce risk now and in the future.”

Read the Savills research report in full click here.

 

 

 

 

Allen Walkey

Highly experienced businessman with a successful career in property sales and investment both in the UK and abroad. Now a freelance writer and blogger for the property and Investment Industry, keeping readers up-to-date with changes and events in a rapidly changing world.

You May Also Enjoy

how to present your property for sale
Breaking News

These are the property hotspots

These are the property hotspots bucking the SDLT deadline price slide Last week, the latest UK House Price Index from the Land Registry revealed a sharp 3.7% monthly drop in average UK house prices during April 2025, following the expiry of temporary stamp duty support at the end of March. Further analysis by eXp UK,…
Read More
Breaking News

Demand rebounds for Prime London property

Big ticket buyers returned to the capital in the spring months, the Prime London Demand Index from London lettings and estate agent Benham and Reeves has revealed. Between the first and second quarters there was a 1.8% uplift in ‘demand’ for homes between £2 and £10 million, which is calculated based on the proportion of…
Read More
Breaking News

Failing to refinance could see portfolio landlords hit with a £23,000 hike to mortgage costs

The latest research by specialist property finance expert, Rangewell, has revealed that buy-to-let portfolio investors who fail to take the appropriate action when it comes to refinancing could see their monthly mortgage costs climb by over £23,000, rather than a £8,500 reduction due to improvements to the mortgage landscape. Rangewell analysed the average amount owed through…
Read More
to let sign 2025
Breaking News

Section 21 Is Set to Go – What This Means for Landlords

By Allison Thompson, National Lettings Managing Director, Leaders The Renters’ Rights Bill is making its way through the House of Lords and, if passed in its current form, will bring major changes to how tenancies are ended. One of the most significant proposals is the abolition of Section 21, often referred to as the ‘no-fault…
Read More
Breaking News

Are falling mortgage rates fuelling a rise in buy-to-let investment?

By Sarah Thompson, Managing Director, Mortgage Scout The latest data from UK Finance shows that in the last quarter of 2024, the average buy-to-let (BTL) interest rate for new mortgage loans taken out was 5.09%, a drop of 0.61% on the previous year. And it seems that falling mortgage interest rates may well be having…
Read More
Breaking News

New survey reveals it now takes over 200 days to sell a home in the UK

The average number of days to sell your home in the UK now stands at 205 – the first time the 200-day mark has been broken. The longest time to sell is in inner London and the South-East at 222 days, closely followed by outer London at 221 days. The North-East is the best performing…
Read More