14% Uk House Price Growth Expected By 2022

Posted on: 12 December 2017

14% UK House Price Growth Expected By 2022
According to a recent forecast, the outlook for property prices over the next five years is quite positive.

New projections from Savills suggest that between 2018 and 2022, properties throughout the UK are predicted to grow by an average of just over 14%.

The forecast does rely on the assumption that employment, wage and GDP growth return to trend levels and that the Bank of England base rate reaches 2.25% over the same period.

All regions in the UK are predicted to see growth over the next 5 years, however, there is some variation from region to region with the North West showing as the clear front-runner by some margin, showing forecasts of an 18.1% increase in property value by 2022.

Closely following behind and projected to see the 2nd and 3rd highest growth of the period is the North East and the region of Yorkshire and the Humber with both regions showing a rise of 17.6%.

While the London region doesn’t top the table for house price growth, showing a 7% rise by 2022, it does show the largest rise predicted for rental rates, with a forecast of a 17% increase over the next 5 years.

It is predicted that on average the UK will see slow growth at first and then more of a surge post-2019. The research suggests growth of 2% this year, a further 1% by the end of 2018, 2.5% in 2019, 5% in 2020, 2.5% in 2021 an 2.5% 2022.

The initial slow growth in the next few years appears to be attributed to uncertainty surrounding Brexit, however, as the economy begins to settle, the market is expected to return to its usual trends.

Head of Residential Research, Lucian Cook, commented on their findings, stating that “Uncertainty over what Brexit means for the UK economy and how it will impact household finances will increasingly act as a drag on house prices,”

“There is capacity for growth once we have greater clarity, but this will be constrained by rate rises and the corresponding ability to get mortgage debt, particularly in London and other higher value locations,

“Mortgage regulation, introduced in 2014, is likely to show its hand as interest rates rise. But by restricting the amount people can borrow, it will take the heat out of the market and so reduce risk now and in the future,”

 

Region

Projected Increase In Value

Projected Value In 2022

North West

18.1%

£184,000

North East

17.6%

£149,000

Yorkshire and the Humber

17.6%

£178,000

Scotland

17%

£171,000

Wales

15.9%

£174,000

East Midlands

14.8%

£204,000

West Midlands

14.8%

£210,000

South West

14.2%

£275,000

East of England

11.5%

£321,000

South East

11.5%

£358,000

London

7.1%

£505,000

Share:


Recent Articles

15 August 2025

Sparkle Up Your Outdoor Space: Decking And Patio Refresh Tips

Sparkle Up Your Outdoor Space: Decking and Patio Refresh Tips   Refresh your garden’s outdoor surfaces.   As summer starts to wind down, August is an ideal time to refresh your decking and patios. With the weather still warm and generally dry, it’s the...

14 August 2025

Uk Mortgage Rates: What’S The Latest?

UK Mortgage Rates: What’s the Latest?   Mortgage rates steady as buyer confidence gradually returns.   If you’re planning to sell your property, now could be a favourable time to act. Encouragingly, the UK mortgage landscape has shown signs of stability and...

14 August 2025

August Glow-Up: Give Your Room A Fresh New Look

August Glow-Up: Give Your Room a Fresh New Look   August’s natural light makes redecorating your room easy and rewarding.   August offers some of the best natural light of the year, making it an ideal month to refresh and redecorate any tired room in your home....

Get an instant online valuation

Find out how much your property is worth