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Map reveals the regions where UK house prices are predicted to rise the most

The north of England is set to see the biggest rises (Picture: Getty Images) UK house prices are forecast to increase by 22% over the next five years, driven by improving economic conditions and anticipated reductions in interest rates. Research from estate agents Savills indicates that the average UK house price could grow by around £80,000 between 2025 and 2030, marking a significant uptick from recent years. While modest growth is expected throughout 2026, acceleration is projected from 2027 onwards as positive market stimuli take effect. This outlook follows a period of relatively slow house price growth earlier in the year, with Nationwide Building Society reporting a modest 0.5% rise in 2025 to date. Consumer confidence has been dampened by economic uncertainties, inflation pressures, and anticipated fiscal policies in the forthcoming Autumn Budget. Savills forecasts a gradual reduction in the Bank of England’s base interest rate from the current level of 4% down to around 2.5% by 2030. This is expected to be supported by recent mortgage lending relaxations that allow lenders to approve more loans, including those with higher risk profiles, potentially increasing buyer activity. Where will house prices grow the most? The strongest increases are anticipated across northern England, Wales, and Scotland, with regions such as Yorkshire and The Humber, North East England, the North West, as well as Wales and Scotland potentially seeing rises exceeding 27% over the five-year period. Conversely, London and the South East are forecast to experience more subdued price growth, with estimates suggesting increases of less than 20% by 2030. This regional disparity reflects differences in affordability and current price levels, with property in the capital and surrounding south-east areas remaining well above the national average, thereby constraining future rapid gains. Northern regions and parts of Wales and Scotland, where prices are lower but market cycles are in later stages, are poised for stronger gains. For instance, by 2030, house prices in the North West are predicted to narrow their price differential with the UK average, reducing the gap to approximately 15%, a notable decline from nearly 30% in 2020. London prices, while still above average, are expected to see their premium fall to about 33%, down from 70% in 2017. London and the south east are expected to experience more modest growth than elsewhere in the UK (Picture: Getty Images/iStockphoto) Market transactions are anticipated to remain near pre-pandemic levels due to improved affordability. Although the UK housing market experienced disrupted activity during the COVID-19 pandemic — with a sharp decline followed by a rebound driven partly by the temporary stamp duty holiday — recent inflation and interest rate increases, coupled with the conclusion of fiscal incentives, have tempered transactions in the short term. Notably, first-time buyers appear comparatively less affected by these downturns, benefiting from improved purchasing power. Emily Williams, director of research at Savills, emphasised that despite technical improvements in affordability over the past three years, buyer confidence is a key determinant of transaction levels. ‘Housing is technically more accessible now than at any point in the last three years, thanks to lower mortgage rates, lower real house prices and looser mortgage regulation. ‘But none of this matters unless buyers feel confident enough to commit – and weaker sentiment is holding back transactions.’ Other independent forecasts largely support the view of moderate house price growth, albeit with variations in timing and scale. Knight Frank recently revised its five-year UK house price growth forecast down slightly to 19.3%, citing a more cautious outlook on mortgage rates and market conditions. Capital Economics projects a moderate 2% rise in 2025 followed by a stronger 5% rebound in 2026, driven by anticipated lower mortgage borrowing costs. Nationwide’s latest figures showed a continued modest increase with a 0.3% rise in house prices in October 2025 and an annual growth rate of 2.4%, despite subdued consumer sentiment and a weakening labour market. And the Office for Budget Responsibility (OBR) forecasts a gradual rise in average UK house prices from roughly £265,000 in late 2024 to about £295,000 by 2029, consistent with earnings growth and tempered by expected increases in housing supply resulting from planning reforms. Overall, these projections depict a UK housing market set for steady and regionally varied growth over the next five years. Improved affordability, easing monetary policy, and undersupply of new homes are expected to underpin this trend. Do you have a story to share? Get in touch by emailing MetroLifestyleTeam@Metro.co.uk.