Overview

• Savills now predicts just 1.0% growth in UK house prices for 2025 and 4.0% in 2026, down from prior forecasts of 4.0% and 5.5%.
• The firm has lifted its five-year projection to a 24.5% rise by end-2029, which would add £86,300 to the average home value, reaching about £448,600.
• Eased mortgage affordability tests and higher loan-to-income limits are expected to boost transactions, especially among first-time buyers.
• House sales are projected to hit around 1.04 million in 2025 after an early-year surge as buyers rushed to beat stamp duty reforms.
• Regional forecasts diverge sharply, with London prices seen rising 15.3% by 2029 compared with a 31.2% gain in the North West.