According to a revised forecast by Savills, the average UK house price is expected to increase significantly by the end of 2028. Here are the key points:
The average house price is projected to leap by £61,500, rising from £285,000 in 2023 to £346,500 by 2028.
This upward revision is based on an improved economic outlook, which has led to a higher growth rate of 21.6% (compared to the previous forecast of 17.9%).
In 2024, Savills anticipates house prices to grow by 2.5%, contrary to an earlier prediction of a 3% drop.
Lucian Cook, head of residential research at Savills, said: "The outlook for 2024 has improved since our last (November 2023) forecasts as mortgage costs have nudged down slightly and are much less volatile.
"The outlook for economic growth has also slightly improved, pointing to relatively modest house price growth this year, with greater potential over the following few years."
Savills' predictions for regional house price growth over the five years to 2028:
North West, 28.8%
Yorkshire and the Humber, 28.2%
Wales, 26.4%
Scotland, 25.8%
North East, 25.2%
West Midlands, 23.4%
East Midlands, 22.8%
South West, 18.7%
South East, 18.2%
East of England, 18.1%
London, 14.2%