According to a new study from Savills, leveraging insights from Oxford Economics and Nationwide, the average UK house price is projected to rise by £84,000 over the next five years.

With inflation anticipated to settle back to the Bank of England’s 2% target and interest rates likely to fall gradually over the coming year, the housing market is expected to experience consistent, steady growth year-on-year.

In the medium term, house prices will primarily be influenced by fundamental factors: supply, demand, and—most critically—affordability. Regional affordability will be a key driver, particularly in the North and North West, which are projected to outperform all other UK regions in terms of growth.

These areas are expected to see the most robust appreciation, fueled by strong demand and comparatively affordable prices that make them attractive for both first-time buyers and investors.

This forecast underscores a promising trajectory for the UK housing market, with regional dynamics playing a major role in shaping growth across the country.