Latest news with #houseprices
The Independent
2 days ago
- Business
- The Independent
Average house price forecast to jump £86,300 by 2029
House price growth expectations have been reduced for this year amid wider global uncertainties, according to a forecast. But the potential for house price growth over the next five years has been upgraded, due to a more relaxed approach to mortgage affordability tests, according to the predictions from property firm Savills. It expects to see house prices across Britain rise by 1.0% on average across this year and by 24.5% over the next five years. Previously, it had forecast house prices to increase by 4.0% this year, with a 23.4% rise over the next five years. Recent economic and geopolitical uncertainty has contributed to a weaker first half of 2025 than previously anticipated, Savills said. It said market activity in 2025 had also been complicated by how buyers reacted to stamp duty changes, with a surge in activity early in the year as buyers rushed to beat the deadline. Stamp duty applies in England and Northern Ireland. However, many mortgage lenders have recently made changes which potentially allow people to borrow more. Savills said the more relaxed approach to mortgage affordability tests should support both house prices and the number of house sales. Based on its new forecast, it expects the average house price to increase £86,300 by 2029. It is forecasting an average house price of £448,600 by the end of 2029, up from an average of £362,300 by mid-year in 2025. Lucian Cook, head of residential research at Savills, said: 'Interest rates have fallen as expected, giving buyers a bit more financial capacity than they had a year ago. 'But a lot has changed over the last six months. Greater geopolitical uncertainty – including tariffs and trade wars – has made predicting the precise path of further cuts more challenging.' Savills said it expects concerns over the prospect of future tax increases to weigh most heavily on the top end of the market. Mr Cook continued: 'Recent easing of mortgage regulations, including more flexibility on affordability stress tests and higher allowances for loans above 4.5 times income, is likely to boost transaction volumes, particularly by helping more first-time buyers get on the ladder.' House sales across 2025 are projected to reach 1.04 million by the year end, in line with previous forecasts. While elevated supply levels may temper price growth, Savills said that it maintains a positive outlook for 2025 overall despite the slow start. Emily Williams, director of research at Savills, said: 'We anticipate that buyer demand will pick up heading into early autumn, particularly among first-time buyers and mortgaged home movers, driven by an expected base rate cut in August and a more competitive mortgage market.' Land Registry and Nationwide Building Society data was used for part of the research. Here is the revised house price forecast from Savills for growth over the five-year period between 2025 and 2029: North West, 31.2% Scotland, 29.4% Wales, 28.2% Yorkshire and the Humber, 28.2% West Midlands, 27.6% North East, 26.4% South East, 20.4% South West, 20.4% East Midlands, 20.3% East of England, 19.2% London, 15.3%.
The Independent
2 days ago
- Business
- The Independent
The average British house price is set to surge by 2029
House price growth expectations for the current year have been significantly scaled back amidst broader global uncertainties, according to a new forecast from property firm Savills. However, the outlook for the next five years has been upgraded, largely attributed to a more relaxed approach to mortgage affordability tests. Savills now anticipates average house prices across Britain to rise by just 1.0 per cent this year, a notable reduction from its previous forecast of 4.0 per cent. Conversely, the firm has increased its five-year projection, expecting a 24.5 per cent increase over that period, up from an earlier estimate of 23.4 per cent. The property expert noted that recent economic and geopolitical instability has contributed to a weaker first half of 2025 than initially foreseen. Furthermore, market activity in 2025 has been complicated by buyer behaviour in response to stamp duty changes, which saw a surge in transactions early in the year as buyers rushed to meet deadlines in England and Northern Ireland. However, many mortgage lenders have recently made changes that potentially allow people to borrow more. Savills said the more relaxed approach to mortgage affordability tests should support both house prices and the number of house sales. Based on its new forecast, it expects the average house price to increase £86,300 by 2029. It is forecasting an average house price of £448,600 by the end of 2029, up from an average of £362,300 by mid-year in 2025. Lucian Cook, head of residential research at Savills, said: ' Interest rates have fallen as expected, giving buyers a bit more financial capacity than they had a year ago. 'But a lot has changed over the last six months. Greater geopolitical uncertainty – including tariffs and trade wars – has made predicting the precise path of further cuts more challenging.' Savills said it expects concerns over the prospect of future tax increases to weigh most heavily on the top end of the market. Mr Cook continued: 'Recent easing of mortgage regulations, including more flexibility on affordability stress tests and higher allowances for loans above 4.5 times income, is likely to boost transaction volumes, particularly by helping more first-time buyers get on the ladder.' House sales across 2025 are projected to reach 1.04 million by the year end, in line with previous forecasts. While elevated supply levels may temper price growth, Savills said that it maintains a positive outlook for 2025 overall despite the slow start. Emily Williams, director of research at Savills, said: 'We anticipate that buyer demand will pick up heading into early autumn, particularly among first-time buyers and mortgaged home movers, driven by an expected base rate cut in August and a more competitive mortgage market.' Land Registry and Nationwide Building Society data was used for part of the research. Here is the revised house price forecast from Savills for growth over the five-year period between 2025 and 2029:
Yahoo
4 days ago
- Business
- Yahoo
Average UK house asking price sees steepest monthly drop in 20 years
UK house prices have experienced their sharpest July decline in over two decades, new figures reveal, with the average asking price falling by more than £4,500 this month. Property portal Rightmove reported that the average asking price now stands at £373,709, marking a 1.2 per cent or £4,531 decrease month-on-month. While a seasonal dip in prices is typical for July, this years' drop is the most significant recorded by Rightmove for this time of year across its more than 20 years of data. Rightmove has also cut its house price forecast for 2025 from 4 per cent growth to 2 per cent due to high level of seller competition limiting price growth, it said. UK house prices have experienced their sharpest July decline in over two decades (Getty/iStock) Despite this, the property website maintains its prediction of 1.15 million property transactions for the current year. The data indicates that London, particularly inner London, has been a key driver of lower asking prices. Price tags across the capital have seen a 1.5 per cent month-on-month fall, escalating to an average 2.1 per cent decline in inner London. April's increase in stamp duty has had a particular impact in London where property prices are higher, the website added. By contrast, the north east of England has seen a 1.2 per cent increase in prices month-on-month, continuing a trend of less expensive areas seeing faster price growth. With mortgage rates falling and two more Bank of England base rate cuts still expected in 2025, the overall outlook for the second half of the year remains positive, the Rightmove report adds. Many lenders have recently made changes to their criteria, allowing some borrowers to potentially take out bigger loans.r Rightmove's map shows average asking price changes across Britain (Rightmove) Rightmove's mortgage tracker indicates that the average two-year fixed mortgage rate is 4.53 per cent, compared with 5.34 per cent a year earlier. Colleen Babcock, a property expert at Rightmove, said: 'We're seeing an interesting dynamic between pricing and activity levels right now. 'The healthy and improving level of property sales being agreed shows us that there are motivated buyers out there who are willing to finalise a deal for the right property. 'The decade-high level of buyer choice means that discerning buyers can quickly spot when a home looks overpriced compared to the many others that may be available in their area. Ms Babcock added: 'Crucially, buyer affordability is heading in the right direction, and another two (Bank of England base rate) cuts before 2026 would be a big boost to this.'
The Independent
4 days ago
- Business
- The Independent
Average UK house asking price sees steepest monthly drop in 20 years
UK house prices have experienced their sharpest July decline in over two decades, new figures reveal, with the average asking price falling by more than £4,500 this month. Property portal Rightmove reported that the average asking price now stands at £373,709, marking a 1.2 per cent or £4,531 decrease month-on-month. While a seasonal dip in prices is typical for July, this years' drop is the most significant recorded by Rightmove for this time of year across its more than 20 years of data. Rightmove has also cut its house price forecast for 2025 from 4 per cent growth to 2 per cent due to high level of seller competition limiting price growth, it said. Despite this, the property website maintains its prediction of 1.15 million property transactions for the current year. The data indicates that London, particularly inner London, has been a key driver of lower asking prices. Price tags across the capital have seen a 1.5 per cent month-on-month fall, escalating to an average 2.1 per cent decline in inner London. April's increase in stamp duty has had a particular impact in London where property prices are higher, the website added. By contrast, the north east of England has seen a 1.2 per cent increase in prices month-on-month, continuing a trend of less expensive areas seeing faster price growth. With mortgage rates falling and two more Bank of England base rate cuts still expected in 2025, the overall outlook for the second half of the year remains positive, the Rightmove report adds. Many lenders have recently made changes to their criteria, allowing some borrowers to potentially take out bigger loans.r Rightmove's mortgage tracker indicates that the average two-year fixed mortgage rate is 4.53 per cent, compared with 5.34 per cent a year earlier. Colleen Babcock, a property expert at Rightmove, said: 'We're seeing an interesting dynamic between pricing and activity levels right now. 'The healthy and improving level of property sales being agreed shows us that there are motivated buyers out there who are willing to finalise a deal for the right property. 'The decade-high level of buyer choice means that discerning buyers can quickly spot when a home looks overpriced compared to the many others that may be available in their area. Ms Babcock added: 'Crucially, buyer affordability is heading in the right direction, and another two (Bank of England base rate) cuts before 2026 would be a big boost to this.'
Bloomberg
4 days ago
- Business
- Bloomberg
UK House Prices Head For Yet Another Flat Year
Welcome to the award-winning Money Distilled newsletter. I'm John Stepek. Every week day I look at the biggest stories in markets and economics, and explain what it all means for your money. I don't always pay a huge amount of attention to the Rightmove index of UK house prices.
