The statistic displays a **** 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 **** year price increase.

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.

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 ***** percent. Between 2024 and 2028, the average house price growth is projected at *** percent. A contraction after a period of continuous growth In June 2022, the UK's house price index exceeded *** index points, meaning that since 2015 which was the base year for the index, house prices had increased by ** percent. In just two years, between 2020 and 2022, the index surged by ** index points. As the market stood in December 2023, the average price for a home stood at approximately ******* 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.

Housing Index in the United Kingdom decreased to 511.60 points in June from 511.80 points in May of 2025. This dataset provides - United Kingdom House Price Index - actual values, historical data, forecast, chart, statistics, economic calendar and news.

United Kingdom Residential Real Estate Market is Segmented by Property Type (Apartments and Condominiums, and Villas and Landed Houses), by Price Band (Affordable, Mid-Market and Luxury), by Business Model (Sales and Rental), by Mode of Sale (Primary and Secondary), and by Region (England, Scotland, Wales and Northern Ireland). The Market Forecasts are Provided in Terms of Value (USD)

Quarterly and annual growth tracking of changes in prime residential property prices in the United Kingdom (UK) up to March 2021 shows increases of up to *** percent in prices. When the observation period was expanded to five years, an increase of **** percent in prices of city prime properties was reported. The property type with the highest annual price growth was prime real estate in rural areas, followed by city properties. Nevertheless, compared with 2007 peak prices, rural properties still underperformed.

According to the forecast, prime property prices will continue to grow in the period between 2021 and 2025.

In 2023, the UK Real Estate Market reached a value of USD 816.7 million, and it is projected to surge to USD 919.0 million by 2030.

In 2022, house price growth in the UK slowed, after a period of decade-long increase. Nevertheless, in March 2025, prices reached a new peak, with the average home costing ******* British pounds. This 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 ** 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 recent fluctuations in house prices? 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 ** 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 **-year fixed mortgage rate doubled, adding further strain to prospective homebuyers. As a result, the market cooled, leading to a correction in pricing.

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 April 2025, house prices increased by 3.5 percent. As of late 2024, the average house price was close to 290,000 British pounds. 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.

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.

Revenue is forecast to dip at a compound annual rate of 1.3% over the five years through 2024-25 to £33 billion. Revenue plummeted in 2020-21 as the pandemic dampened property management activity. Property managers enjoyed a sharp recovery in revenue during 2021-22, aided by soaring house prices amid low interest rates. In 2022-23, rent prices skyrocketed as landlords contended with rising interest rates and tax hikes. Competition for housing remained fierce in 2023-24, pushing up rental prices and supporting revenue for property managers. Despite this, revenue slipped overall as non-residential property transactions climbed, with new owners choosing to manage the properties themselves or refurbish or repurpose the property before leasing it out again. Revenue looks set to climb by 2.5% over 2024-25 as rents remain high. Build-to-rent sector growth has proved fruitful for property management companies. According to Knight Frank, in January 2025, more than 22,300 BTR homes were completed in 2024, marking a year of record delivery for the BTR sector. Revenue from the commercial sector is likely to grow, as companies may decide now’s a good time to upgrade their offices thanks to falling interest rates in 2024-25, lifting profit. Over the five years through 2029-30, property management services revenue is slated to swell at a compound annual rate of 2.4% to reach £37.1 billion. The rental market will continue gaining momentum amid upcoming regulatory changes, ramping up costs for landlords and driving commission fee income. House prices look set to remain high, at least in the short term, keeping some prospective homeowners in the rental market. Business confidence will remain somewhat constrained, though Capital Economics forecasts the base rate to fall to 3.5% by early 2026, which should boost investment volumes, increasing demand for property management services. The government's goal to construct 1.5 million homes by 2029 will benefit the industry. Approximately £3 billion of the £5 billion housing budget is earmarked for additional guarantees to SME house builders and build-to-rent developers, indicating ongoing government backing for the private sector. This support for housebuilding initiatives is set to broaden the client base available to property management companies, fostering revenue growth.

Modern auctions allow mortgage buyers to take part in auctions, leading to higher bids and sales prices and attracting higher-value properties into auctions. Following the 2007-08 global financial crisis, UK auction property sales accelerated, climbing around 25% between 2010 and 2013. According to the Essential Information Group (EIG), auction volumes stayed high from 2013 to 2018, with around 20,000 yearly property auction sales taking place, but they then dipped by 10% through 2020. However, climbing UK house prices have also dragged up the average value of an auctioned property, supporting revenue growth, particularly over 2021-22. Over the five years through 2024-25, the Property Auction Houses industry's revenue is expected to climb at a compound annual rate of 8% to £433.3 million. The pandemic severely impacted auction sales, with practically no properties sold between April and June 2020, denting revenue in 2020-21. However, a stamp duty holiday encouraged a flood of properties to the market later in the year. EIG stated that despite a decrease in the number of lots offered at auctions compared to 2019, most months in 2020 saw a climb in the percentage of auction lots sold. In 2021-22, revenue skyrocketed, driven by a massive hike in the average sale price of auctioned properties and a rise in the volume of property sales by auction. Over 2023-24, cost-of-living pressures and tumbling UK house prices slashed revenue by 5.5%. In 2024-25, house prices are rising again and interest rates are set to start edging downwards, which will boost market activity. As a result, revenue is slated to rise by 3.7%. Over the five years through 2029-30, revenue is forecast to expand at a compound annual rate of 3.8% to £523.2 million. Even with rates expected to start falling, high mortgage rates will make UK properties less affordable and soften house prices in the short term. Property auction houses will benefit from increased online auction activity as consumers increasingly value and trust the faster and more convenient online model, which offers a better chance of selling their property than estate agents.

The house price index (HPI) shows changes in the value of residential properties in England, Scotland, Wales, and Northern Ireland. With the HPI set at a base of 100 in January 2015, a value of over 100 would mark an increase in the average dwelling price. A value of under 100 points, on the other hand, would indicate that the average price has dropped. House price index in the UK The HPI fluctuated in 2023, after peaking in November 2022. In December 2023, the index stood at 149 index points, which was a slight decline from December 2022. This trend in the index, and therefore the value of UK residential properties, has also been observed by the Halifax house price index. Average house prices Average house prices are affected by several factors. Economic growth, unemployment, interest rates and mortgage availability can all drive them up or down. A shortage of supply means that the need for housing and the competitive market created will push house prices up. An excess of housing, on the other hand, means prices fall to stimulate buyers.

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.

During the COVID-19 pandemic, the number of house sales in the UK spiked, followed by a period of decline. In 2023 and 2024, the housing market slowed notably, and in January 2025, transaction volumes fell to 46,774. House sales volumes are impacted 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 decline in sales.

Building contractors and developers depend on various socio-economic factors, including property values, underlying sentiment in the housing market, the degree of optimism among downstream businesses and credit conditions. All of these drivers typically track in line with economic sentiment, with recent economic shocks spurring a difficult period for building contractors and developers. Nonetheless, the enduring need for building services, particularly to tackle housing shortages across the continent, ensures a strong foundation of work. Revenue is forecast to grow at a compound annual rate of 2.3% to reach €1.3 trillion over the five years through 2025. Operational and supply chain disruption caused by the pandemic reversed the fortunes of building contractors and developers in 2020, as on-site activity tumbled and downstream clients either cancelled, froze or scaled back investment plans. Aided by the release of pent-up demand and supportive government policy, building construction output rebounded in 2021. Excess demand for key raw materials led to extended lead times during this period, while input costs recorded a further surge as a result of the effects of rapidly climbing energy prices following Russia’s invasion of Ukraine. Soaring construction costs and the impact of interest rate hikes on both the housing market and investor sentiment led to a renewed slowdown in building construction activity across the continent. However, falling inflation and the start of an interest rate cutting cycle have spurred signs of a recovery in new work volumes, supporting anticipated revenue growth of 2.3% in 2025. Revenue is forecast to increase at a compound annual rate of 6.7% to €1.7 trillion over the five years through 2030. Activity is set to remain sluggish in the medium term, as weak economic growth and uncertainty surrounding the impact of the volatile global tariff environment on inflation and borrowing costs continue to weigh on investor sentiment. Contractors and developers will increasingly rely on public sector support, including measures to boost the supply of new housing, as countries seek to tackle severe housing shortages. Meanwhile, the introduction of more stringent sustainability requirements will drive demand for energy retrofits.

Furniture and floor coverings was one of the most impacted retail sectors between 2008 and 2011 due to the challenging economic conditions. A deteriorating housing market, high levels of unemployment and strong CPI inflation caused many shoppers to priorities their spending towards more needs based sectors at the expense of big ticket items. However, since 2012, growth in the market has got progressively stronger, peaking in 2015 when sales achieved a 3.3% uplift, as heightened consumer confidence and low levels of inflation encouraged customers to replace older pieces of furniture. As well as the more buoyant conditions, improvements made to the specialists premium offer encouraged customers to trade up, supporting growth in 2015. While slowing on 2015, 2016 will remain positive as consumer confidence remained high early in the year and lower levels of inflation benefited shopper’s spending power. Read More

The Real Estate Adaptation and Innovation within an integrated Retailing system (REPAIR) project, conducted at the University of Glasgow and University of Sheffield, investigated the changes experienced across the retail cores of five UK cities Edinburgh, Glasgow, Hull, Liverpool and Nottingham between 2000 and 2021. The project examined different aspects of the property market and built environment across four separate work streams. In this work stream, the conceptual framework was developed from an assemblage approach, to examine the involvement of key professional stakeholder groups to explore the ways the social structures may work to create unique retailing destinations, or to hinder adaptive capacity.