As 2026 gets underway, many homeowners and prospective movers are taking stock of their plans. The latest five-year forecast from real estate services firm Savills provides a useful snapshot of where the UK housing market may be heading.
A measured start to the cycle
According to Savills, house price growth is expected to remain subdued in the near term. Average UK prices are estimated to have risen by just 1.0% during 2025, with growth likely to edge up to around 2.0% in 2026. This relatively slow pace reflects lingering economic uncertainty, affordability constraints and softer buyer demand that has yet to fully unwind.
Growth gathering pace from 2027
Looking further ahead, momentum is forecast to strengthen from 2027 onwards. On current economic assumptions, easing interest rates should support improved confidence and affordability. Savills forecasts price growth of 4% in 2027, rising to 5% in 2028 and peaking at 5.5% in 2029, before easing back to 4% in 2030. Taken together, this equates to a cumulative rise of just over 22% in average UK house prices across the five-year period.
Regional differences remain significant
More affordable regions are forecast to see the strongest performance, with areas such as the North East, and Yorkshire and the Humber, seeing total price growth of around 28.8% by 2030.
By contrast, London and much of the South of England are likely to lag due to ongoing affordability pressures. In the capital, prices are forecast to rise by a more modest 13.6% the same time frame.
Implications for buyers and movers
- First-time buyers - the early years of low growth may offer a window of opportunity before prices begin to accelerate from 2027
- Upsizers and growing families – those moving within the next three to five years may benefit from rising equity as the market strengthens
- High-value regions – slower, steadier growth means long-term planning is increasingly important
- More affordable regions – stronger forecast gains could make earlier purchases particularly attractive
- Buy-to-let investors – moderating prices, easing mortgage rates and rising rents may gradually improve activity, though tighter regulation and higher taxation are likely to cap growth.
Whatever your circumstances, if you would like support navigating the changing property market in the years ahead, please contact us for advice.
