What’s Next for UK House Prices? A Five-Year Forecast

UK House Price Growth: What Investors Need to Know

The UK property market remains a hot topic, especially with the latest Knight Frank forecast predicting 2.5% growth in 2025, followed by steady increases of 3% in 2026 and 3.5% in 2027. While this is slightly lower than previous forecasts, the long-term outlook remains positive, with a total expected increase of 19.3% over the next five years.

For buy-to-let investors and property buyers, this stability presents a promising opportunity—especially in key locations like London, Manchester, and Birmingham, where rental demand continues to rise.

Interest Rates & Market Trends: What to Expect

The recent Budget has led to adjustments in interest rate expectations, influencing both mortgage rates and buyer confidence. According to Knight Frank’s Tom Bill, borrowing costs have increased, leading to short-term downward pressure on house prices. However, with inflation expected to stabilise, interest rates could ease in the coming years, making property investment more attractive.

London’s Property Market: A Slower but Stable Climb

Greater London’s property market is forecasted to grow by 15.3% between 2025 and 2029, slightly lower than previous predictions. Prime Central London (PCL), a hotspot for overseas investors, is expected to recover more slowly due to tax changes affecting foreign buyers. However, demand remains strong, making it a long-term investment opportunity.

Is Now the Right Time to Invest in UK Property?

For property investors, the UK remains a stable and profitable market. While short-term fluctuations may occur, the long-term outlook suggests steady price growth and increasing rental yields, particularly in high-demand buy-to-let locations.

At Regency Invest, we help investors navigate the market and maximise their returns. Explore our latest property investment opportunities today!

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