Savills revised 5 year house price forecast

Within days of Savills' June house price forecast, Chancellor Rishi Sunak trumped it with the announcement of a Stamp Duty holiday. Add to that the unexpected post-lockdown mini-boom and an update was needed. Here it is and, once again, it surprises on the upside.

As before, the North West, Scotland and Yorkshire are expected to lead the way, with anticipated 5 year capital growth of 27%, 25% and 24% respectively, promising very healthy returns to investors. For those using a buy to let mortgage, gains are likely to be exceptional.

​Savills' comments below the chart.

The pace of change in the UK housing market has taken us all by surprise in the past few months. While we have been concerned about the economic backdrop, other factors have unleashed a wave of activity in the market. Behavioural changes have encouraged many to trade up the housing ladder and others to reassess their work-life balance, adding to the pent-up demand coming out of lockdown.

The introduction of a stamp duty holiday, not factored into our previous forecast, has exacerbated this further.

All of the evidence now points to the prospect of price growth in 2020, quite unlike the pattern seen in any other recessionary period, as demand outpaces supply being brought to the market. Furthermore, the number of deals being agreed and the increase in mortgage approvals suggest that we will see far higher levels of transactional activity than we had previously expected.

Savills Research

Savills' full report is available here