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London is expected to see slower than average house price growth over the next five years, new data from Savills has revealed. <\/p>\n
Whereas the average UK property is expected to see a 22 per cent rise in value by 2030, homes in London will see a more modest boost of just 13.6 per cent.<\/p>\n
With a typical London property currently valued at \u00a3683,707, this is equivalent to a \u00a393,191 price rise over five years. Nationwide, the average property is projected to cost \u00a379,930 more than it does now (\u00a3359,875). <\/p>\n
The Savills forecast suggests that more expensive areas, like London, will see slower house price growth over the next five years than areas where homes are currently more affordable. <\/p>\n
The South East and East of England, for example, are both expected to see lower than average house price growth, at 17 and 19.3 per cent respectively.<\/p>\n
Properties in Yorkshire and The Humber and the North East of England, though, are predicted to see the biggest percentage price increases over the next five years of anywhere in the country, at 28.8 per cent.<\/p>\n
Scotland, Wales and the North West are also anticipated to see above average price rises, all at 27.6 per cent. <\/p>\n
These regional differences in house price growth over the next five years are anticipated to have an equalising effect on property values around the country, said Savills.<\/p>\n
By 2030, values in the North West, for example, are expected to sit at just 15 per cent below the UK average; in 2020, they were almost 30 per cent lower.<\/p>\n
And in London, prices are set to be 33 per cent above average in five years, whereas they were 70 per cent higher in 2017.<\/p>\n
\u201cRegional performance is largely influenced by where we are in the housing market cycle, said Dan Hill, research analyst at Savills. <\/p>\n
\u201cSince 2016, we\u2019ve been in the second half of the cycle, where the more affordable regions in the North and Scotland outperform the UK average, and capacity for growth in London and the South is more limited.<\/p>\n
\u201cIn the absence of any whole market price correction, this pattern is likely to persist for the next five years, with the strongest growth shifting to late-stage markets in the North East, Scotland and Wales.\u201d <\/p>\n
How will the Budget impact house prices?<\/strong><\/p>\n The autumn Budget<\/a>, which will provide some answers to these questions, will take place on 26 November.<\/p>\n \u201cMeanwhile discretionary movers \u2014especially those looking at higher price points\u2014 are adopting a wait-and-see approach,\u201d explained Hopper.. \u201cThey\u2019re unlikely to take their finger off the pause button until after the Budget, so the prime property market may remain in suspended animation until the new year.\u201d<\/p>\n Uncertainty around the Budget is keeping house prices subdued for now<\/p>\n PA Wire<\/p>\n According to Savills\u2019 figures, house price growth is expected to remain constrained until 2027, at one per cent this year and two per cent the next. Values will grow in real terms from 2028 onwards, for the first time since 2022.<\/p>\n In London, no growth is projected until 2027, and then only at two per cent. <\/p>\n \u201cOur previous forecast assumed falling interest rates would boost borrowing and investment, supporting house price growth. However, with inflation stuck at 3.8 per cent, economists are less confident about the pace in which rate cuts will happen,\u201d said Lucian Cook, head of residential research at Savills<\/a>.<\/p>\n \u201cHigher interest and mortgage rates next year, as well a weaker labour market, with a slight rise in unemployment and slowing wage growth, are likely to constrain price growth. <\/p>\n \u201cThe upcoming Budget also continues to weigh on the market, although we expect any announcements to have a much greater impact on prime values and transactions than the mainstream market. <\/p>\n \u201cDirect changes to transactional taxes could alter the incentives that currently shape buyers\u2019 housing decisions, while broader tax increases on certain population segments could reduce some prospective buyers\u2019 capacity to finance home purchases. <\/p>\n \u201cUltimately, however, the biggest influence on the mainstream market will come from how financial markets react to the Budget itself.\u201d <\/p>\n Over the next five years, increased affordability \u2014 due to lower mortgage rates and prices \u2014 is likely to drive transactions close to pre-pandemic levels.<\/p>\n First-time buyers are the only buyer group with activity significantly above pre-pandemic levels.<\/p>\n![](\"https:\/\/www.europesays.com\/uk\/wp-content\/uploads\/2025\/11\/4e0d95b736477f45c55e1244b6bd503cY29udGVudHNlYXJjaGFwaSwxNzQ1OTMzODYz-2.78087593.jpg\")
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