House prices forecast to increase in the next 4 years by 17%

At Green and Parry, we always keep a close eye on market forecasts, because we know just how important timing and regional trends can be when buying or selling a home. Based on the latest industry data and overall economic signals, here’s our view on how the UK housing market might evolve over the coming years.

 2025 looks like a softer year — but with stabilisation on the horizon

• This year, the national average for house-price growth is modest, with forecasts pointing to little or no increase in many parts of the country. 

• Buyer sentiment remains cautious — influenced by economic uncertainty, shifting mortgage conditions, and broader affordability concerns. 

• For sellers, this means that properties may take slightly longer to find the right buyer, but for buyers — particularly first-time buyers — this could create good opportunities to enter the market before prices start to climb again.

Medium-term recovery — growth picking up from 2026 onwards

• Many industry forecasts indicate that house prices could begin to rise again from 2026, potentially delivering annual growth of 4–6 % in many regions. 

• Over the 2025–2030 period, cumulative growth across the UK is expected to be strong — perhaps adding around 20-25 % to average house values.  

• This upward trend is likely driven by improving affordability (as mortgage rates ease), steady demand — especially from first-time buyers — and limited supply in many areas putting upward pressure on prices. 

Regional house-price trends — Where growth may be strongest

Our analysis suggests that the largest gains over the next five years are likely to come in regions outside the historically high-price areas of London and the South East. Here’s where we expect to see the most significant movement:

Region / Area	Expected 2025-2030 Outlook
Northern England (e.g. North East, Yorkshire & Humber)	Strong growth — many of these areas are forecast to lead the nation over the next 5 years.
Scotland & Wales	Among the top-performing regions; attractive for buyers/sellers seeking value growth outside the South.
Midlands (West & East)	Moderate to strong growth — may appeal to buyers looking for balance between affordability and long-term value.
London & South East	Growth likely slower than the national average — prices in these areas are already high, which limits further upward movement.

What this means — From Pilgrims Estate Agents

For sellers:

• If you own a home in one of the growth-heavy regions (North, Scotland, Wales, Midlands), holding onto the property for a few more years could yield substantial value gains by 2030.

• If you’re in a high-price area such as London or South East — while long-term growth may be more modest, the market tends to remain more stable and liquid than in lower-price regions.

For buyers:

• Regions outside the South look increasingly attractive — now may be a good time to buy and benefit from longer-term growth and better affordability.

• If you’re looking in London or the South East, price growth may be limited — but there may still be relative stability, especially if you prioritise employment, transport links, and long-term rental or resale potential.

For investors & landlords:

• Growth regions outside the South provide a potential sweet spot: lower entry prices, good growth prospects, and potentially stronger demand as affordability remains key for many buyers.

• As demand comes back over the medium term, rental yields in areas of growth may stabilise or improve — presenting a potentially attractive yield-to-growth balance.

If you like, we can produce a full forecast report for the next 5 years — broken down by region (e.g. North, Midlands, South, Scotland & Wales). This can help your buyers, sellers, and investors get a clearer picture of possible outcomes — and plan accordingly.

Sources from MoneyWeek