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North West Property Values Set to Soar by 29.4% - Savills

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    Savills Upgrade Forecasts for Mainstream Capital Growth

    Savills has just released a new property price forecast with revised projections for the next few years. According to their report, the outlook for the UK property market seems more optimistic thanks to inflation returning to the 2% target and optimism regarding future interest rates based on forecasts by Oxford Economics.

    The new predictions show a stronger market performance compared to Savills’ previous forecast. In the earlier forecast, UK mainstream capital growth was projected at 21.6% leading up to 2028. In the new forecast, this figure is 23.4% property price growth in the five years to 2029.

    202520262027202820295 Years to 2029
    Mainstream UK House Price Growth4.0%5.5%5.0%4.0%3.0%23.4%

    However, the regional forecasts predict that many areas will see stronger growth than the national average.

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      North West Set For Strongest Capital Growth in UK

      Looking at the regional forecasts, the clear north-south divide in property market performance seems set to continue.

      202520262027202820295 Years to 2029
      North West5.0%7.0%6.5%4.5%3.5%29.4%
      North East5.0%6.5%6.0%4.5%3.5%28.2%
      Yorkshire and the Humber5.0%6.5%6.0%4.5%3.5%28.2%
      East of England2.5%5.0%4.5%3.5%3.0%19.9%
      South East3.0%4.0%3.5%3.5%2.5%17.6%
      London3.0%4.0%3.5%3.0%2.5%17.1%

      While stronger growth is predicted for all regions, the southern regions of South West, East of England, South East, and London are all forecast to experience less growth than the UK average. The London property market is at the bottom of the table with a forecast of 17.1% capital growth leading up to 2029.

      Northern regions such as the North West, North East, and Yorkshire and the Humber are predicted to outstrip the UK average with growth of nearly 30%. In these more affordable markets, Savills notes there is room for higher price growth and potential for annual growth of between 6% and 7% across the North of England during 2026 and 2027.

      The North West continues to sit at the top of Savills’ ranking and is now forecast to see 29.4% growth in 5 years to 2029, an even higher prediction than the previous forecast of 28.8%.

      The North West’s strongly performing property market has led to many property investors looking to this region for appealing investment opportunities. RWinvest’s latest off-plan launch, West One, is located in Manchester and investors are primed to benefit from both strong rental demand and forecasted capital growth.

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      UK Rents Expected to Increase by 17.6% by 2029

      Rental demand remains at elevated levels as the supply-demand imbalance in the UK private rental market persists. Savills states that analysis of portal data reveals that properties are letting 20% faster in 2024 compared to 2018/19.

      2024202520262027202820292025-2029
      UK Rental Growth4.0%4.0%3.5%3.0%3.0%3.0%17.6%
      London Rental Growth1.5%2.5%2.5%2.5%3.0%3.0%14.2%

      There hasn’t been much improvement on the supply side, meaning that rents are likely to continue to be pushed upwards going forward. According to Savills’ predictions for the next five years, rents are expected to continue on the trajectory of significant growth, but there are signs in some markets, such as London, that affordability constraints are starting to outweigh the supply-demand imbalance.

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      Author

      Jessica Ferris

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      Jessica Ferris is a property writer at RWinvest, helping our readers stay ahead of property market trends with the latest news and statistics.

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