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UK House Prices to Soar 22.2% Despite Weak Demand

11/5/2025

23 2 Full Breakdown

Summary

Story summary

Savills revised its UK house price forecast to a 22.2% rise over the next five years, averaging £80,000.
It now expects 2% growth in 2026, down from earlier estimates.
Scotland, Yorkshire, and the North East are projected to grow over 27%.
Despite lower mortgage rates improving affordability, buyer sentiment remains weak and volumes fall.

History

Historical Context

The UK housing market experienced a severe downturn in 2008, with prices dropping by 15% amid the financial crisis. Despite this, Savills forecasts a 22.2% increase in house prices over five years, particularly in Scotland and Yorkshire. However, lingering effects from 2008, including weak buyer sentiment, suggest a cautious recovery for the housing sector, highlighting ongoing challenges.

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Story summary

Savills revised its UK house price forecast to a 22.2% rise over the next five years, averaging £80,000.
It now expects 2% growth in 2026, down from earlier estimates.
Scotland, Yorkshire, and the North East are projected to grow over 27%.
Despite lower mortgage rates improving affordability, buyer sentiment remains weak and volumes fall.

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