MARKET INSIGHT
UK Property Market Growth Forecasts Improve: Savills Releases Upgraded Growth Forecasts for UK Property Investors
August 12, 2025 • Author: Richard Bradstock
London, UK
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On 24 July 2025, Savills released its updated mainstream UK house price forecast, revising its short-term outlook for 2025 while reinforcing its long-term confidence in 2026 and beyond.
UK House Price Growth Forecast (2025-2029)
| Category | Forecast | Analysis |
|---|---|---|
| 2025 Growth Forecast | 1.0% | Downgraded to 1.0% (from 4%), reflecting weaker activity early in the year |
| Five-Year Growth (End 2029) | 24.5% | Up from 23.4% previously, adding approx. £86,300 to average UK house price |
| North West Regional Growth (2025-2029) | 31.2% | Standout performer in the UK market |
Savills' latest forecasts show moderate short-term growth with strong acceleration from 2026, highlighting regional opportunities especially in the North West.
Savills Five-Year regional Growth Projections
GROWTH DESPITE ECONOMIC UNCERTAINTY
Key factors making a difference:
Stamp duty changes: Buyers rushed in early 2025 to beat changes in March, followed by a slowdown in enquiries and transaction volumes in Q2. However it is worth noting that sales volumes remain above 2024 levels meaning there remain more buyers in the market.
Geopolitical and economic uncertainty: Trade tensions and inflation made forecasting challenging and weighed on confidence.
Regional variation: Strong growth expected generally in the North contrasting with a flatter market in London.
An investor-friendly forecast
1
Long-Term Value Locked In
Savills’ 24.5% growth projection over five years means investors locking in properties now could see significant capital appreciation, particularly as the rate of growth accelerates from 2026 onwards.
2
Improved Mortgage Affordability
Relaxed stress testing rules and higher loan-to-income allowances are expanding access, especially for first-time buyers and mortgaged movers. This should boost demand and transaction volumes from 2026 onward.
3
Timing the uk property Market Cycle
A subdued 2025 may be a strategic entry window—with lower competition and sellers offering more competitive pricing on increased supply.
4
Regional Opportunities
Savills expects strong five year returns across the board however with London particularly not likely to grow as much making the right investment choice is all important in today's market.
Kingfisher, Manchester
Investor Takeaways
| Insight | Interpretation |
|---|---|
| 1.0% growth in 2025 | 1% growth as an average across the UK but higher expected in the North meaning that if you wait to invest you will likely be paying more for the property in 12 months time. |
| Up to 31.2% growth by 2029 | Offers strong long-term capital appreciation potential, especially in high-growth regions like the North West. |
| Lending easing | Opens opportunities for investors through expanded finance options and broader buyer interest. |
| Competitive pricing environment now | Strategic entry point before the market turns uptick later in 2025 and beyond. |
Sloane Court, Birmingham
Final Thought: A Cautiously Bullish Opportunity
Savills’ upgraded five-year outlook provides encouraging tailwinds for investors, a compelling opportunity to enter now and benefit later, echoing our sentiments in this month’s market update.
Compute the upside: £86,300 average house price increase over five years is seriously compelling.
Confidence in mortgage markets: Easier lending rules unlock access and activity.
Regional profiles matter: Targeting high-growth regions could amplify returns.
Time arbitrage: Buy now during subdued activity, ride the upswing in 2026–2029.
See our current investment opportunities here, with nationwide options for investors in particular North Western investment property hotspots like Manchester with varied price points. You can start your UK investment portfolio from as little as £12,500! Buying with RPA gives you access to our full suite of services, designed specifically for UK property investors ensuring you have the best advice and knowledge always to hand. From initial investment advice, property sourcing, due diligence, mortgages, conveyancing, tax advice, lettings and management or resales, RPA has you covered.
Start your journey today and take advantage of the UK’s thriving buy-to-let market. It’s more than just an investment; it’s a pathway to financial freedom and a legacy for future generations. If you would like to read the original Savills report please click here.
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About the author
Founder and Managing Director
richard bradstock
RPA’s founder, Richard has worked in residential development investment for 20 years and oversees the general running of the business ensuring the RPA Group retains true to its founding principles. Over his career Richard has built an incredible network of international property investors and like-minded industry professionals.
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