Welcome to the hub page for our housing market forecasts, which were released on 6th November 2024.

We have summarised our expectations for mainstream price growth, transactions and rents in the table below. 

However, for more detail and insight behind our thinking, you can find the following articles from our team:

Lucian Cook looks at how the experiences of the past 12 months have shaped our expectations for 2025.

Dan Hill assesses how the economic outlook feeds into our forecasts for the market over the next five years.

Emily Williams delves into the detail around regional market variation and the market activity across buyer groups.

Guy Whittaker weighs up the competing pressures of supply and affordability in the rental market.

Our forecasts in summary

Mainstream Headlines

• We are forecasting UK values to grow by 4% in 2025, and by 23.4% over the next five years. Growth will be supported by steady cuts to the base rate over the next two years, which will improve affordability.
• The strongest performing regions are expected to be the North of England and Scotland. We are forecasting 5 year growth of almost 30% for the North West, the strongest region. London is expected to continue to be the weakest growing region, as it is most constrained by affordability, but we have increased our 5 year figure from 14.2% last year to 17.1%.
• Transaction volumes are expected to gradually increase, with first time buyers leading the recovery. The stamp duty changes announced in the Budget will result in muted activity from Buy to Let investors and to a lesser extent amongst cash buyers. We expect annual transactions to reach 1.15 million by 2028, slightly below the 2017-19 average of 1.2 million.
• Following several years of strong growth, rents are expected to reach an affordability ceiling. By the second half of our forecast period we think rental growth will fall back to be in line with income growth, resulting in a five year figure of 17.6%.