House Prices – what to expect in 2026 and beyond
Regional growth will be uneven, with the strongest price rises expected in more affordable northern regions Early years of low growth may help first-time buyers before the market strengthens from 2027 onward Buy-to-let activity may rise, but regulation and taxation will continue to limit overall investor appetite 

As 2026 begins, many homeowners and would-be movers are reassessing their plans. The latest five-year outlook from real estate services company Savills offers a clear view of where the property market may be heading, suggesting a slow start, followed by a steady and sustained recovery through to 2030. 

Savills expects subdued price growth in the short term, with average UK house prices estimated to have risen by just 1.0% in 2025 and believed likely to pick up to 2.0% in 2026. This muted pace reflects ongoing economic uncertainty and softer buyer demand still working its way through the market. 

Momentum is expected to build from 2027 as, on current economic predictions, interest rates continue to ease. The forecast points to price growth of 4% in 2027, 5% in 2028 and a peak of 5.5% in 2029, followed by 4% in 2030. Over the five-year period, Savills predicts a total increase of over 22% in UK house prices. 

Regional outlook 

Price growth will not be evenly distributed. The strongest increases are forecast in more affordable regions such as the North East, and Yorkshire and the Humber, where values could rise by around 28.8% by 2030. 

By contrast, growth in London and the South of England is expected to lag, limited by affordability pressures. In London, house prices are forecast to rise by a more modest 13.6% over the same five-year period. 

What this means for different buyers 

  • First-time buyers – early years of low growth may offer an opportunity to buy before prices are expected to accelerate from 2027 onwards 
  • Growing families and upsizers – those planning a move over the next three to five years may benefit from rising equity as the market strengthens 
  • Buyers in high-value regions – expect steadier, slower growth. Long-term planning becomes even more important 
  • Buyers in more affordable regions – stronger forecast gains could make early purchases particularly advantageous 
  • Buy-to-let investors – because of moderating prices, falling mortgage rates and rising rents, activity is expected to pick up gradually. However, any increase is likely to be limited by tighter rental regulation and higher taxation. 

Whatever your circumstances, if you need support navigating the changing property market in the coming years, please contact us for advice. 

As a mortgage is secured against your home or property, it could be repossessed if you do not keep up mortgage repayments.