
The UK housing market is poised for a significant upswing, with leading estate agency Savills forecasting a 21% rise in house prices by 2028. This growth is expected to be fuelled by declining mortgage rates and sustained buyer demand, particularly in sought-after regions.
What’s Driving the Surge?
According to Savills, the recent dip in mortgage rates is set to unlock pent-up demand, especially among first-time buyers and those looking to upsize. The firm anticipates a gradual recovery in the market, with prices climbing steadily over the next five years.
Regional Variations
The forecast highlights notable regional disparities:
- London and the South East: Expected to see slower growth initially but will catch up by 2028.
- Northern England and Scotland: Predicted to outperform, with price increases of up to 28% in some areas.
- Midlands and Wales: Moderate growth, balancing affordability and demand.
Impact of Stamp Duty Changes
While the market is rebounding, Savills warns that potential changes to stamp duty policies could influence buyer behaviour. The current thresholds have provided relief, but any future adjustments may either stimulate or stifle activity.
What Should Buyers and Sellers Do?
For those considering a move:
- Buyers: Lock in competitive mortgage rates now before further price hikes.
- Sellers: Capitalise on rising demand, particularly in high-growth regions.
- Investors: Look to northern markets for higher yield potential.
With the market on an upward trajectory, strategic decisions in the coming months could prove pivotal for long-term gains.