The statistic displays a five year forecast for house price growth in the United Kingdom (UK) from 2020 to 2024, revised with the coronavirus (covid-19) impact on the market. According to the forecast, 2020 and 2021 will likely see a slower to no increase in house prices followed by a gradual recovery between 2022 and 2024. North West, North East, Yorkshire & the Humber, and Scotland prices are forecast to bounce back quicker than other UK regions with higher five year price increase.

Just as in many other countries, the housing market in the UK grew substantially during the coronavirus pandemic, fueled by robust demand and low borrowing costs. Nevertheless, high inflation and the increase in mortgage rates has led to house price growth slowing down. According to the forecast, 2024 is expected to see house prices decrease by three percent. Between 2024 and 2028, the average house price growth is projected at 2.7 percent. A contraction after a period of continuous growth In June 2022, the UK's house price index exceeded 150 index points, meaning that since 2015 which was the base year for the index, house prices had increased by 50 percent. In just two years, between 2020 and 2022, the index surged by 30 index points. As the market stood in December 2023, the average price for a home stood at approximately 284,691 British pounds. Rents are expected to continue to grow According to another forecast, the prime residential market is also expected to see rental prices grow in the next years. Growth is forecast to be stronger in 2024 and slow down in the period between 2025 and 2028. The rental market in London is expected to follow a similar trend, with Central London slightly outperforming Greater London.

Prime London flats in Outer and Central London, have reduced in prices in the period between March 2020 and 2021 and so have the Central London prime houses. Outer London prime houses, regional and coastal prime properties, on the other hand, saw prices grow in the same period. The highest increase in prices was recorded among prime country houses over two million British pounds. According to the forecast, prime property prices both in Central and in Outer London are expected to increase in the next five year.

In 2022, house price growth in the UK slowed, after a period of decade-long increase. Nevertheless, in August 2024, prices reached a new peak, with the average home costing close to 290,000 British pounds. That figure refers to all property types, including detached, semi-detached, terraced houses, and flats and maisonettes. Compared to other European countries, the UK had some of the highest house prices. How have UK house prices increased over the last 10 years? Property prices have risen dramatically over the past decade. According to the UK house price index, the average house price has grown by over 50 percent since 2015. This price development has led to the gap between the cost of buying and renting a property to close. In 2023, buying a three-bedroom house in the UK was no longer more affordable than renting one. Consequently, Brits have become more likely to rent longer and push off making a house purchase until they have saved up enough for a down payment and achieved the financial stability required to make the step. What caused the decline in house prices in 2022? House prices are affected by multiple factors, such as mortgage rates, supply, and demand on the market. For nearly a decade, the UK experienced uninterrupted house price growth as a result of strong demand and a chronic undersupply. Homebuyers who purchased a property at the peak of the housing boom in July 2022 paid 14 percent more compared to what they would have paid a year before. Additionally, 2022 saw the most dramatic increase in mortgage rates in recent history. Between December 2021 and December 2022, the 10-year fixed mortgage rate doubled, adding further strain to prospective homebuyers. As a result, the market cooled, leading to a correction in pricing.

The average house price in London increased slightly year-on-year as of June 2024, amid a slowdown in the UK housing market. Barking and Dagenham was the most affordable borough to buy a house, with an average price of 340,403 British pounds. Kensington and Chelsea stood at the other end of the spectrum, with an average price of 1.2 million British pounds. Nevertheless, it was also one of the boroughs where prices fell the most. Demand for housing and house prices With vastly more job and cultural opportunities, megacities continue attracting people from all over the world. Since the beginning of the 1980s, the population of London has increased by more than 2 million inhabitants and in the next 20 years, it is forecast to increase by almost 1.5 million. That makes London properties a valuable asset. Historically, property prices in London have risen steadily, albeit minor fluctuations. Residential properties transactions Since 2006, the number of residential property sales has varied between 1.7 million and 0.8 million transactions annually. The housing boom in 2021 led to an increase in home purchases, but the economic uncertainty, stubborn inflation, and dramatically higher interest rates have led to transactions falling.

The Report Covers UK Residential Real Estate Market Overview and Trends. The Market is Segmented by Type (Apartments and Condominiums and Landed Houses and Villas) and by Key Regions (England, Wales, Northern Ireland, Scotland, and Other Regions).

The Report Covers UK Commercial Property Market Forecast and Size. The Market is Segmented by Type (Office, Retail, Industrial, Logistics, Hospitality, and Multi-Family) and by Key City and Region (England, Wales, Northern Ireland, Scotland, London (City), and Rest of the United Kingdom).

The house price index in London reached 129.9 index points in June 2024, which was an increase from a year ago, despite a mild correction. The house price index (HPI) is an easy way of illustrating trends in the house sales market and help simplify house purchase decisions. By using hedonic regression, the index models property price data for all dwellings and shows how much the price has changed since January 2015. How have regional house prices in the UK developed? House prices in other UK regions have risen even more than in London. In the North West, the house price index exceeded 160 index points, ranking it among the regions with the highest property appreciation. The UK house price index stood at 151 index points, suggesting an increase of 51 percent since 2015. Average house prices Location plays a huge role in the price of a home. Kensington and Chelsea and City of Westminster are undoubtedly the most expensive boroughs in London, with an average house price that can exceed one million British pounds. In comparison, a house in Barking and Dagenham cost approximately one third. Nevertheless, the housing market is the busiest in the boroughs with average house prices.

House prices in the UK rose dramatically during the coronavirus pandemic, with growth slowing down in 2022 and turning negative in 2023. The year-on-year annual house price change peaked at 14 percent in July 2022. In June 2024, house prices increased by 2.7 percent. According to the Nationwide Building Society, the average house price exceeded 265,000 British pounds in 2022. Correction in housing prices: a European phenomenon The trend of a growing residential real estate market was not exclusive to the UK during the pandemic. Likewise, many European countries experienced falling prices in 2023. When comparing residential property RHPI (price index in real terms, e.g. corrected for inflation), countries such as Germany, France, Italy, and Spain also saw prices decline. Sweden, one of the countries with the fastest growing residential markets, saw one of the largest declines in prices. How has demand for UK housing changed since the outbreak of the coronavirus? The easing of the lockdown was followed by a dramatic increase in home sales. In November 2020, the number of mortgage approvals reached an all-time high of over 107,000. One of the reasons for the housing boom were the low mortgage rates, allowing home buyers to take out a loan with an interest rate as low as 2.5 percent. That changed as the Bank of England started to raise the base lending rate, resulting in higher borrowing costs and a decline in homebuyer sentiment.

Vienna, Luxembourg, and Hamburg were the markets with the lowest vacancy rates in Europe in the fourth quarter of 2024. Vacancy rates are a measurement of unoccupied properties during a given period and are a good indication of an area’s desirability and opportunity for development. High vacancy rates can indicate an economic downturn, a lack of demand, or possibly that standards do not meet speculative renters’ needs. Low vacancy rates are, in general, considered a good thing as it means there is a good level of demand from customers, although low vacancy rates may also show a need for more development which is not being met. Since the beginning of the coronavirus (COVID-19) pandemic, vacancy rates in the office sector have been on the rise because of declining occupiers' demand.
The major European office markets? London, Paris, and Stockholm were the most expensive markets for office real estate in Europe in 2023. In London, prime office space, which refers to a property of the highest quality, optimal location, and standard dimensions that are in accordance with the local demand, was able to fetch a staggering price of 2,069 euros per square meter. When it comes to total stock, Berlin ranked among the largest markets in Europe. Where is office space most profitable? According to 2024 forecast the UK is expected to see the most return on investment by 2025 and 2026 than Europe. Industry experts forecast that investment will have better prospects than development, and that central city offices will perform better than suburban offices.

The financial and operational success of property development markets depends on a range of socio-economic factors, such as property values, market sentiment and credit conditions. Building project developers' revenue is forecast to slide at a compound annual rate of 3.2% to £35.8 billion over the five years through 2024-25. The economic shock caused by the pandemic had a devastating impact on property development market in 2020-21. Severe supply chain and market disruption caused sentiment to wane and transaction activity fell, while property values initially depreciated and rental fee income stalled. Revenue rebounded in 2021-22, aided by low interest rates, house price inflation and a stronger than anticipated initial economic recovery from the pandemic. Nonetheless, revenue remained below pre-pandemic levels as growth was hindered by a further net deficit on revaluation of assets and lower rental income in office and brick-and-mortar retail markets. The fallout from the pandemic has caused developers to re-align investment towards lower-risk real estate markets which are likely to be more resilient to price shocks. Inaflationary pressures and rising interest rates spurred a further hit to portfolio valuations, discouraging developers from pursuing new developments. Revenue is forecast to grow by 2.5% in the current year, as interest rate cuts spur renewed growth in property values. Revenue is slated to climb at a compound annual rate of 1.3% to reach £38.2 billion over the five years through 2029-30. Following recent interest rate cuts, more stable economic conditions are set to continue to support improved sentiment in the near-term, spurring developers to pursue new ventures. Opportunities for growth are set to be most prominent in high-yield office markets and the technology sector, with growing use of artificial intelligence set to drive demand for the development and construction of data centres. Loosened planning policy is set to drive momentum in residential real estate markets, though more will need to be done for the government to achieve ambitious housebuilding targets.

According to the figures, as of November 2021, it can be seen that the number of housing transactions in the United Kingdom was forecast to fluctuate in the next five years and reach 1.2 million in 2026. House prices are expected to continue their year-on-year increase in this period.

Residential building contractors are contingent on the propensity of property developers to invest in new ventures; movements in property prices; government schemes intended to boost the housing supply; and underlying sentiment in the housing market. Industry contractors have endured turbulent operating conditions over the past five years, leading to volatile shifts in revenue and profitability. Revenue is forecast to grow at a compound annual rate of 1% over the five years through 2024-25, reaching £97.4 billion. The pandemic caused a significant drop in output in 2020-21, as restrictions placed on on-site activity and fewer enquiries for new housing units reduced revenue opportunities. Aided by government support for the housing market and the release of pent-up demand, 2021-22 was characterised by a strong rebound in activity, though materials and labour shortages maintained constraints on output. Mounting supply chain disruption and heightened economic uncertainty maintained pressure on output in the following year, though revenue growth was maintained by growth in average selling prices. Interest rate hikes and inflationary pressures led to a more subdued housing market in 2022-23, holding back the number of housing starts and completions during the year. This was followed by a slump in new residential building construction in the following year, as high borrowing costs and uncertain market conditions caused developers to scale back investment plans. Revenue is set to grow by 1.5% in 2024-25, aided by a slight improvement in new orders for residential building construction and an uptick in average selling prices. Revenue is slated to climb at a compound annual rate of 1.5% to reach £105.1 billion over the five years through 2029-30. Housebuilding activity is set to grow in the medium-term, aided by the release of pent-up demand. Nonetheless, significant uncertainty remains, with mortgage rates likely to settle well-above pre-pandemic levels and supply chains remaining fragile. The new government’s pledge to deliver 1.5 million houses during the first five years of parliament will boost demand for industry contractors, though the full impact of this on growth prospects is dependent on the nature and extent of accompanying funding plans.

The monthly house price index in London has been steadily increasing in recent years. In June 2024, the index reached 129.9, up from 129 a year before. Nevertheless, prices widely varied in different London boroughs, with Kensington and Chelsea being the priciest boroughs for an apartment purchase.

The United Kingdom Floor Covering Market Report is Segmented Into Material Type (carpet and Area Rugs, Non-Resilient Flooring, and Resilient Flooring), End User (residential and Commercial), and Distribution Channel (contractors, Specialty Stores, Home Centers, and Other Distribution Channels). The Report Offers Market Size and Forecasts in Value (USD) for all the Above Segments.

After a very slow second quarter of 2020 due to the coronavirus (COVID-19) pandemic, the housing market in the United Kingdom (UK) experienced dramatic surge in home sales. In the first quarter of 2021, the residential property supply varied between 2.2 and 2.9 months of available stock for sale in different regions of the UK, and 3.8 months in Inner London. Considering the limited supply and the spike in demand, house prices have been on an upward trend.

The prime property rental real estate market in Outer London is expected to see an overall increase in rental rates during the five-year period between 2024 and 2028, according to a May 2024 forecast. Over the five-year period, the cumulative prime rental growth is forecast at 16.5 percent. Nationwide, residential rents have soared since 2021, with the annual rental growth peaking at over nine percent in March 2024.

During the COVID-19 pandemic, the number of house sales in the UK spiked, followed by a period of decline. In 2023, the housing market slowed notably, and in September 2024, transaction volumes fell below 50,000. House sales volumes are affected by a number of factors, including mortgage rates, house prices, supply, demand, as well as the overall health of the market. The economic uncertainty and rising unemployment rates has also affected the homebuyer sentiment of Brits. How have UK house prices developed over the past 10 years? House prices in the UK have increased year-on-year since 2015, except for a brief period of decline in the second half of 2023 and the beginning of 2024. That is based on the 12-month percentage change of the UK house price index. At the peak of the housing boom in 2022, prices soared by nearly 14 percent. The decline that followed was mild, at under three percent. The cooling in the market was more pronounced in England and Wales, where the average house price declined in 2023. Conversely, growth in Scotland and Northern Ireland continued. What is the impact of mortgage rates on house sales? For a long period, mortgage rates were at record-low, allowing prospective homebuyers to take out a 10-year loan at a mortgage rate of less than three percent. In the last quarter of 2021, this period came to an end as the Bank of England rose the bank lending rate to contain the spike in inflation. Naturally, the higher borrowing costs affected consumer sentiment, urging many homebuyers to place their plans on hold and leading to a drop in sales.

The house price for Ontario is forecast to increase slightly in 2024, after declining by six percent in 2023. From roughly 872,312 Canadian dollars, the average house price in Canada's second most expensive province for housing is expected to rise to 876,410 Canadian dollars in 2024. After British Columbia, Ontario is Canada's most expensive province for housing. Ontario Ontario is the most populated province in Canada, located on the eastern-central side of the country. It is an English speaking province. To the south, it borders American states Minnesota, Michigan, Ohio, Pennsylvania, and New York. Its provincial capital and largest city is Toronto. It is also home to Canada’s national capital, Ottawa. Furthermore, a large part of Ontario’s economy comes from manufacturing, as it is the leading manufacturing province in Canada. The population of Ontario has been steadily increasing since 2000. The population in 2018 was an estimated 14.3 million people. The median total family income in 2021 came to 100,000 Canadian dollars. Ontario housing market The number of housing units sold in Ontario is projected to rise until 2024. Additionally, the average home prices in Ontario have significantly increased since 2007.

The UK residential rental market is poised for significant growth, with forecasts indicating a cumulative increase of nearly 18 percent by 2029. This surge is expected to be front-loaded, with a robust eight percent rise anticipated in 2024. Rental growth has accelerated notably since 2021, with August 2024 experiencing a decade-high annual percentage growth. The trend reflects the complex interplay between housing affordability, mortgage rates, and supply of rental homes, as the UK housing market navigates a period of transition.